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14 December 2022
El Departamento de Justicia llega a un acuerdo histórico con la Ciudad y el Departamento de Policía para suspender el programa de vivienda de alquiler “libre de delitos” en Hesperia, CaliforniaRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo histórico para resolver una demanda de discriminación racial y de origen nacional contra la Ciudad de Hesperia, California y el Departamento del Alguacil del Condado de San Bernardino. La demanda del Departamento alegó que la Ciudad y el Departamento del Alguacil incurrieron en un patrón o práctica de discriminación contra individuos y comunidades afroestadounidenses y latinos en Hesperia, en contra de la ley de Vivienda Justa y el título VI de la ley de Derechos Civiles de 1964, mediante la adopción y aplicación de un llamado programa de vivienda de alquiler “libre de delitos”. Esta es la primera resolución del Departamento de Justicia que requiere la suspensión total de un programa de vivienda de alquiler “libre de delitos”.
“El Departamento de Justicia está comprometido a garantizar que las políticas de vivienda no discriminen contra individuos por motivos raciales, incluyendo los llamados programas ‘libre de delitos’”, afirmó la Fiscal General Asociada Vanita Gupta. “Además de promover el acceso justo a vivienda, la resolución del día de hoy protegerá a los individuos que solicitan ayuda de emergencia o la asistencia de las fuerzas del orden público ante las represalias”.
“Las llamadas ordenanzas ‘libre de delitos’ a menudo son impulsadas por objetivos discriminatorios, desestabilizan a comunidades y promueven la segregación racial actual”, manifestó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Estas ordenanzas pueden desarraigar las vidas de las personas, empujar a familias a quedarse sin hogar y dar lugar a la pérdida del empleo, la escuela y las oportunidades para las personas que son, de manera desproporcionada, personas de color de bajos ingresos. Las ordenanzas “libre de delitos” podrían también constituir una solución discriminatoria en busca de un problema y contravenir los objetivos principales que fundamentan la ley de Vivienda Justa. Como deja claro este acuerdo, el Departamento de Justicia seguirá luchando contra las ordenanzas discriminatorias e ilegales “libre de delitos” en todo el país y trabajando para garantizar que todos tengan acceso justo y equitativo a la vivienda”.
“El derecho a una vivienda justa es fundamental y no debe vulnerarse”, declaró el Fiscal Federal del Distrito Central de California, Martin Estrada. “Este importante acuerdo con Hesperia evita que el llamado programa ‘libre de delitos’ devaste a individuos y familias con la conmoción emocional y las dificultades financieras que acompañan a los desalojos que se producen con poca antelación. El acuerdo de hoy y la orden por consentimiento traerán un cambio real a Hesperia y más allá”.
“Las políticas de vivienda discriminatorias con base en la raza y el origen nacional, incluyendo las sancionadas y aplicadas por los gobiernos locales, no tienen lugar en nuestra sociedad”, expresó Demetria L. McCain, la Secretaria Auxiliar Adjunta Principal de la Oficina de Vivienda Justa y Equidad de Oportunidades del Departamento de Vivienda y Desarrollo Urbano (HUD). “Este acuerdo envía un fuerte mensaje que HUD y DOJ seguirán trabajando juntos para enérgicamente aplicar las leyes de vivienda justa de nuestra nación”.
La demanda de los Estados Unidos
La demanda del Departamento, presentada en 2019 con base en una investigación de HUD, alegó que la Ciudad de Hesperia, con el apoyo sustancial del Departamento del Alguacil, promulgó un programa “libre de delitos” con la intención de abordar lo que un concejal de la Ciudad llamó un “problema demográfico”: la población creciente de afroestadounidenses y latinos en Hesperia.
El programa obligaba a todos los propietarios de viviendas de alquiler a desalojar a inquilinos cuando el Departamento del Alguacil les notificara que éstos habían participado en cualquier presunta “actividad delictiva” en la propiedad o en sus inmediaciones, independientemente de que esas alegaciones hubieran dado lugar a una detención, imputación o condena. Además, el programa animaba a los proveedores de vivienda a desalojar a familias enteras cuando solo un miembro de la unidad familiar participara en una supuesta actividad delictiva e incluso notificaba a los propietarios que debían desalojar a los supervivientes de violencia doméstica. También exigía a todos los propietarios que investigaran a los posibles inquilinos a través del Departamento del Alguacil, que notificaría a los propietarios si el solicitante había “violado” las normas del programa en el pasado. La Ciudad de Hesperia también aprobó posteriormente una ordenanza relativa a las licencias comerciales para viviendas de alquiler que hacía obligatoria la inscripción en el programa “libre de delitos” e imponía honorarios excesivos.
La demanda del Departamento se basó en parte en el análisis realizado por HUD, que mostró que los inquilinos afroestadounidenses tenían casi cuatro veces más probabilidades, y los inquilinos latinos un 29% más, de ser desalojados en virtud del programa que los inquilinos blancos. El análisis de HUD también mostró que más del 96% de las personas y los hogares desalojados en virtud de la ordenanza “libre de delitos” vivían en bloques censales de minorías mayoritarias, a pesar de que solo el 79% de los hogares de alquiler en Hesperia viven en tales bloques.
La demanda del Departamento alegó que cientos de personas fueron objeto de la ordenanza “libre de delitos” de Hesperia.
El programa tuvo impactos reales y devastadores en las familias de toda la Ciudad de Hesperia:
- Por ejemplo, una mujer afroestadounidense que vivía en Hesperia llamó repetidamente a la policía para que acudiera a su casa porque no se sentía segura con su novio. El Departamento del Alguacil le notificó al propietario de las numerosas llamadas por disturbios domésticos y le amenazó con un delito menor. El propietario obligó entonces a la mujer y a sus hijos a abandonar su casa. Sin ningún lugar a donde ir, la familia se mudó a un motel e intentó alquilar otra vivienda en Hesperia, pero las solicitudes fueron denegadas repetidamente. Al no poder alquilar otra vivienda para su familia en Hesperia, se vio obligada a desarraigar su vida, dejar atrás una casa llena de muebles y mudarse al otro lado del país.
- El programa también afectó a una mujer latina residente en Hesperia que llamó a la policía para pedir ayuda para su novio, que estaba sufriendo una crisis de salud mental en su casa. Cuando el Departamento del Alguacil llegó antes que los paramédicos, su novio fue detenido. La mujer recibió entonces un aviso de desalojo con base en la supuesta violación de la ordenanza, y se vio obligada a trasladarse temporalmente a un motel.
- Una familia afroestadounidense se vio separada después de que la llamada de ayuda de una madre a la policía contribuyera a que fueran desalojados de su hogar y enumerados en la lista de infractores, lo que hizo que les fuera imposible encontrar otro alquiler en Hesperia. Los padres se mudaron del área y tomaron la imposible decisión de dejar atrás a su hija adolescente para que finalizara la escuela superior.
Orden de consentimiento
Como parte de la resolución de este caso, Hesperia ya ha revocado su ordenanza “libre de delitos”, ha modificado la ordenanza de licencias de negocios de alquiler de viviendas y ha reducido los honorarios asociados con las licencias de negocios de alquiler de viviendas. El Departamento del Alguacil también ha acordado poner fin a la aplicación del programa “libre de delitos” de Hesperia.
Según la orden por consentimiento propuesta, que aún debe ser aprobada por el Tribunal Federal de Distrito para el Distrito Central de California, los demandados gastarán $950,000 y se comprometerán a importantes medidas cautelares para remediar los efectos de los programas “libre de delitos” y de licencias comerciales, entre las que se incluyen: un fondo de conciliación de $670,000 para compensar a las personas perjudicadas por el programa; el pago de $100,000 en sanción civil; financiación de $95,000 para mercadeo afirmativo con el fin de promover la vivienda justa en Hesperia; financiación de $85,000 dólares para asociaciones con organizaciones comunitarias; notificaciones a los administradores de propiedades, arrendadores y propietarios de los cambios en las ordenanzas y en la lista de honorarios; presentación de determinadas políticas, procedimientos y ordenanzas para su revisión y aprobación por los Estados Unidos antes de su adopción; adopción de políticas de no discriminación y procedimientos de queja; designación de coordinadores de derechos civiles; capacitación contra la discriminación; evaluación de las necesidades de vivienda justa; e informes periódicos al tribunal y a los Estados Unidos durante los cinco años de vigencia de la orden.
Las personas que crean haber sido perjudicadas por el programa “libre de delitos” de Hesperia pueden tener derecho a una indemnización con cargo al fondo de conciliación y deben ponerse en contacto con el Departamento de Justicia en Hesperia.Investigation@usdoj.gov o en 1-833-223-1571.
La Ley federal de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, género, condición familiar, origen nacional o discapacidad. El título VI de la Ley de Derechos Civiles de 1964 prohíbe la discriminación por motivos de raza, color de piel u origen nacional en los programas y actividades que reciben ayuda financiera federal. Para más información acerca de la División de Derechos Civiles y las leyes que hace cumplir, vaya a https://www.justice.gov/espanol. Las personas pueden reportar incidentes de discriminación en la vivienda en línea en https://civilrights.justice.gov/, llamando a la línea informativa del Departamento de Justicia al 1-833-591-0291, enviando un correo electrónico a fairhousing@usdoj.gov. También se puede reportar tal discriminación llamando a HUD al 1-800-669-9777 o sometiendo un formulario de queja en https://portalapps.hud.gov/FHEO903/Form903/Form903Start.action?lang=es.
English
Eight men indicted for $114 million securities fraud scheme orchestrated through social mediaRead the Press Release
HOUSTON - A federal grand jury in the Southern District of Texas returned an indictment that was unsealed yesterday charging eight men with conspiracy to commit securities fraud for a long-running, social media-based “pump and dump” scheme.
Those indicted include Edward Constantinescu aka Constantin 38, of Montgomery; Perry “PJ” Matlock, 38, of The Woodlands; John Rybarczyk, 32, of Spring; Dan Knight, 23, of Houston; along with Gary Deel, 28, and Tom Cooperman, 34, both of Beverly Hills, California; Stefan Hrvatin, 35, of Miami, Florida; and Mitchell Hennessey, 23, of Hoboken, New Jersey. According to court documents, they allegedly engaged in a wide-ranging securities fraud conspiracy in which the they used their extensive social media presence on Twitter and Discord to hype interest in particular securities by posting false and misleading information in order to “pump” the prices of those securities, while concealing their intent to later “dump” their shares by selling them at the artificially inflated prices. From in or around January 2020 to in or around April 2022, the defendants allegedly profited at least approximately $114 million from their scheme.
“Securities fraud victimizes innocent investors and undermines the integrity of our public markets,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “As these charges demonstrate, the department will continue to prosecute those who defraud investors by spreading false and misleading information, including over social media, to line their own pockets.”
According to the indictment, the defendants collectively had over 1.5 million followers on Twitter to whom they allegedly disseminated false and misleading information about the securities that they pumped and dumped as part of the charged scheme. In addition to their Twitter presence, the defendants also allegedly ran an online community for individual stock traders called Atlas Trading, which defendants promoted as one of the largest, free online communities in the world for individual stock traders and which had a chatroom called Atlas Trading Discord. The defendants also allegedly used Atlas Trading Discord to disseminate false and misleading information about securities that they pumped and dumped as part of the charged scheme.
“We are committed to protecting the investing public from market manipulation schemes, regardless of how they are carried out,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As some use advances in technology and social media to prey upon the public, our office will be on the cutting edge of prosecuting this area of fraud.”
According to the indictment, the defendants allegedly used the following aliases on Twitter and Discord to perpetuate the scheme:
Defendant
Twitter Handle
Discord Handle
Edward Constantinescu
@MrZackMorris
Zack Morris#0001
Perry “PJ” Matlock
@PJ_Matlock
PJ Matlock#0001
John Rybarczyk
@Ultra_Calls
Ultra#0374
Gary Deel
@notoriousalerts
Mystic Mac [Clover emoji] #7345
Stefan Hrvatin
@LadeBackk
Lade Backk#6083
Tom Cooperman
@ohheytommy
TOMMY COOPS #5323
Mitchell Hennessey
@Hugh_Henne
HOODHUGHBEAR [Bear emoji] #4034
Daniel Knight
@DipDeity
Dan, Deity of Dips#8114
As further alleged in the indictment, the defendants used their social media credibility to maximize their own profits at the expense of their followers, holding themselves out as skilled stock traders by posting pictures showcasing their profits and extravagant lifestyles and encouraging people to follow them on social media in order to share in their financial gains.
“Corporate fraud remains a priority for the FBI as it victimizes investors and erodes public confidence in the securities markets,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners remain committed to identifying, investigating and pursuing those who seek to undermine the U.S. financial market and investors.”
All defendants are charged with one count of conspiracy to commit securities fraud. Additionally, Constantin is charged with three counts of securities fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity; Matlock and Deel are both charged with five counts of securities fraud; Rybarczyk is charged with four counts of securities fraud; and Hrvatin, Cooperman and Hennessey are each charged with two counts of securities fraud.
The defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 25 years in prison for conspiracy to commit securities fraud and each charged count of securities fraud. Constantin also faces a maximum penalty of 10 years in prison if convicted of engaging in unlawful monetary transactions.
The FBI Houston Field Office is investigating the case.
SDTX Assistant U.S. Attorney Thomas “Heyward” Carter III and Assistant Chief Scott Armstrong and Trial Attorney John J. Liolos of the Criminal Division’s Fraud are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. You are also encouraged to visit our webpage for this case at https://www.justice.gov/criminal-vns/case/united-states-v-constantinescu-et-al.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eight Utah Residents Charged with $100 Million Worth of Fraud and Money Laundering Schemes Involving the Sale of Dietary SupplementsRead the Press Release
UPDATE
Upon Motion of the United States, the indictment described in the press release below against Barbara Jo Jackson, in this case was dismissed on May 28, 2025.
SALT LAKE CITY, Utah – Multiple people were indicted by a federal grand jury in the District of Utah for their participation in a fraudulent online scheme through which they obtained more than $100 million of credit and debit card processing from financial institutions and payment processors.
As charged in the indictment, the defendants allegedly committed 18 counts of criminal activity, including Conspiracy to Commit Wire Fraud, Conspiracy to Commit Bank Fraud, Conspiracy to Commit Money Laundering, Wire Fraud, Aggravated Identity Theft and Money Laundering Aiding and Abetting.
According to the indictment, from at least January 2016 through April 2022, April Gren Bawden, 36, of Salt Lake County; Chad Austin Bawden, 43, of Salt Lake County; Makaio Lyman Crisler, 39, of Utah County; Phillip Gannuscia, 52, of Salt Lake County and Puerto Rico; Dustin Garr, 44, of Washington County; Barbara Jo Jackson, 69, of Utah County; Brent Goldburn Knudson, 42, of Utah County; Robert McKinley, 45, of Spokane, Washington; and Richard Scott Nemrow, 42, of Utah County, knowingly devised and executed a scheme and artifice to defraud, obtain money and property by means of materially false and fraudulent pretenses, representations and promises, and omissions of material facts. The scheme involved the sale of dietary supplements that were sold to consumers using misleading and fraudulent practices. In order to effectuate their scheme, the defendants recruited and paid “straw owners” for use of their personal information to create sham LLCs to obtain merchant processing accounts for defendants to process the sales of the products. The proceeds of the scheme were transferred to the defendants, who then purchased items such as a Lamborghini Urus, a 2020 Porsche 911 convertible, and a 2021 Nautique Paragon boat.
U.S. Attorney Trina A. Higgins of the District of Utah and IRS Criminal Investigation made the announcement.
Assistant U.S. Attorneys, Jamie Thomas, Jennifer Muyskens, and Cy Castle from the U.S. Attorney’s Office for the District of Utah are prosecuting the case. Special Agents from IRS Criminal Investigations and FDA Office of Criminal Investigations are conducting the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Eight Men Indicted for $114 Million Securities Fraud Scheme Orchestrated Through Social MediaRead the Press Release
A federal grand jury in the Southern District of Texas returned an indictment that was unsealed yesterday charging eight men with conspiracy to commit securities fraud for a long-running, social media-based “pump and dump” scheme.
According to court documents, Edward Constantinescu, aka Constantin, 38, of Montgomery, Texas; Perry “PJ” Matlock, 38, of The Woodlands, Texas; John Rybarczyk, 32, of Spring, Texas; Gary Deel, 28, of Beverly Hills, California; Stefan Hrvatin, 35, of Miami, Florida; Tom Cooperman, 34, of Beverly Hills, California; Mitchell Hennessey, 23, of Hoboken, New Jersey; and, Dan Knight, 23, of Houston, Texas, allegedly engaged in a wide-ranging securities fraud conspiracy in which the defendants used their extensive social media presence on Twitter and Discord to hype interest in particular securities by posting false and misleading information in order to “pump” the prices of those securities, while concealing their intent to later “dump” their shares by selling them at the artificially inflated prices. From in or around January 2020 to in or around April 2022, the defendants profited at least approximately $114 million from their scheme.
“Securities fraud victimizes innocent investors and undermines the integrity of our public markets,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these charges demonstrate, the department will continue to prosecute those who defraud investors by spreading false and misleading information, including over social media, to line their own pockets.”
According to the indictment, the defendants collectively had over 1.5 million followers on Twitter to whom they allegedly disseminated false and misleading information about the securities that they pumped and dumped as part of the charged scheme. In addition to their Twitter presence, the defendants also allegedly ran an online community for individual stock traders called Atlas Trading, which defendants promoted as one of the largest, free online communities in the world for individual stock traders and which had a chatroom called Atlas Trading Discord. The defendants also allegedly used Atlas Trading Discord to disseminate false and misleading information about securities that they pumped and dumped as part of the charged scheme.
“We are committed to protecting the investing public from market manipulation schemes, regardless of how they are carried out,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “As some use advances in technology and social media to prey upon the public, our office will be on the cutting edge of prosecuting this area of fraud.”
According to the indictment, the defendants allegedly used the following aliases on Twitter and Discord to perpetuate the scheme:
Defendant
Twitter Handle
Discord Handle
Edward Constantinescu
@MrZackMorris
Zack Morris#0001
Perry “PJ” Matlock
@PJ_Matlock
PJ Matlock#0001
John Rybarczyk
@Ultra_Calls
Ultra#0374
Gary Deel
@notoriousalerts
Mystic Mac [emoji of four-leaf clover]#7345
Stefan Hrvatin
@LadeBackk
Lade Backk#6083
Tom Cooperman
@ohheytommy
TOMMY COOPS #5323
Mitchell Hennessey
@Hugh_Henne
HOODHUGHBEAR[emoji of an ox]#4034
Daniel Knight
@DipDeity
Dan, Deity of Dips#8114
As further alleged in the indictment, the defendants used their social media credibility to maximize their own profits at the expense of their followers, holding themselves out as skilled stock traders by posting pictures showcasing their profits and extravagant lifestyles, and encouraging people to follow them on social media in order to share in their financial gains.
“Corporate fraud remains a priority for the FBI as it victimizes investors and erodes public confidence in the securities markets,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners remain committed to identifying, investigating, and pursuing those who seek to undermine the U.S. financial market and investors.”
"Financial crimes like securities fraud may not be violent, but they certainly are not victimless," said Special Agent in Charge James Smith. "The eight individuals arrested today are accused of costing investors, specifically their social media followers who trusted them, millions of dollars by a ‘pump and dump’ market manipulation scheme they allegedly carried out on popular social media platforms. As the lead agency investigating corporate fraud, the FBI was able to uncover their alleged manipulative activity and expose their coordinated pattern of securities fraud."
All defendants are charged with one count of conspiracy to commit securities fraud. Additionally, Constantin is charged with three counts of securities fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity; Matlock and Deel are both charged with five counts of securities fraud; Rybarczyk is charged with four counts of securities fraud; and Hrvatin, Cooperman, and Hennessey are each charged with two counts of securities fraud.
The defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 25 years in prison for conspiracy to commit securities fraud and each charged count of securities fraud. Constantin also faces a maximum penalty of 10 years in prison if convicted of engaging in unlawful monetary transactions. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Houston Field Office is investigating the case.
Assistant Chief Scott Armstrong and Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas “Heyward” Carter III for the Southern District of Texas are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. You are also encouraged to visit our webpage for this case at https://www.justice.gov/criminal-vns/case/united-states-v-constantinescu-et-al.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eagle Grove Man Off to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
Russell Spencer, age 40, from Eagle Grove, Iowa, was sentenced on December 8, 2022, to ten years in federal prison in Sioux City, Iowa.
On August 4, 2022, Spencer pled guilty to one count of conspiracy to distribute methamphetamine; one count of possession with intent to distribute methamphetamine; one count of possession with intent to distribute marijuana; three counts of distribution of methamphetamine; and one count of possession of firearms by a prohibited person.
At the plea and sentencing hearings, evidence showed that between 2021 and January 20, 2022, Spencer and others involved in the conspiracy, participated in the distribution of at least 1.5 kilograms of mixed methamphetamine. Spencer was a mid-level methamphetamine dealer in Central Iowa, with both Iowa and California sources of supply. Spencer made several trips to California, to acquire and transport back to Iowa, multiple pounds of methamphetamine for further distribution in the Central Iowa area. Spencer also utilized package delivery by the US Postal Service for delivery of methamphetamine from California to Iowa, for further distribution. In late 2021 and early 2022, law enforcement made three controlled methamphetamine buys from Spencer, for a total of more than 110 grams of actual/pure methamphetamine. On January 20, 2022, law enforcement executed a search warrant at Spencer’s residence, seizing 172.88 grams actual methamphetamine, 427.5 grams of marijuana, and two handguns, an unloaded Ruger 9 mm in a shed and a loaded .22 caliber revolver, in kitchen.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Spencer was sentenced to 120 months’ imprisonment with terms on all counts served concurrently and must serve a 5-year term of supervised release following imprisonment. There is no parole in the federal system. Spencer remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Wright County Sheriff’s Office, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3004. Follow us on Twitter @USAO_NDIA.
Ecuadorian Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Eliecer Pineda Torres, 52, of Ecuador, pleaded guilty before Magistrate Judge Emile Henderson, III, to conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. Sentencing for Torres has been scheduled for April 14, 2023.
According to court documents, on November 15, 2021, while on routine patrol in the eastern Pacific Ocean, the United States Coast Guard (USCG) Cutter HAMILTON spotted a 52’ low-profile vessel approximately 77 nautical miles north of the Galapagos Islands, Ecuador. The unnamed vessel, outfitted with three outboard engines, had no flag flown or registration number. Onboard the vessel were individuals later identified as Luis Rodriguez, Eliecer Pineda Torres, Carlos Benitez Estupinan and Anthony Cuero Garcia. Neither individual claimed to be master nor nationality of the vessel thereby making the vessel subject to the jurisdiction of the United States. During an inspection of the vessel, USCG crew members found approximately 43 bales of suspected cocaine. A field tests was conducted which yielded positive results for the presence of cocaine. The total weight for the suspected cocaine was approximately 1,298 kilograms. A Drug Enforcement Administration laboratory analysis later concluded that the suspected substance tested positive for cocaine hydrochloride. Defendants Rodriguez of Columbia and Benitez Estupinan and Cuero Garcia of Ecuador also pleaded guilty to cocaine conspiracy. At sentencing, the defendants face a mandatory minimum sentence of ten years of imprisonment and a maximum of life, plus deportation. A federal District Court judge will determine their sentence after considering the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Coast Guard, Customs and Border Protection and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Melissa P. Ortiz. 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.
Dominican Man Indicted for Illegal ReentryRead the Press Release
BOSTON – A Dominican man has been indicted by a federal grand jury in Boston for illegally reentering the United States after deportation.
Felix Bienvenido Gonzalez-Arias, a/k/a “Victor Manuel Trinidad-Lugo,” 38, was indicted on one count of unlawful reentry of a deported alien. He will appear in federal court in Boston on Dec. 16, 2022.
According to the indictment, on Sept. 1, 2022, in Middleton, Gonzalez-Arias was found to have reentered the United States after previously being deported in April 2018.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Detroit man sentenced to 12 years for his role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kevin Lawrence Jarrett, of Detroit, Michigan, was sentenced today to 151 months of incarceration for his role in a drug trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Jarrett, also known as “Six,” 32, pleaded guilty in July 2022 to one count of “Distribution of Five Grams or More of Methamphetamine.” Jarrett admitted to distributing more than five grams of methamphetamine, also known as “crystal” and “ice,” in in august 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 investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Derry, PA Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A former resident of Derry, Pennsylvania, pleaded guilty in federal court to charges involving the sexual exploitation of minors, United States Attorney Cindy K. Chung announced today.
Michael Wilson, age 44, pleaded guilty to six counts before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that on multiple occasions during 2019 through May 15, 2021, Wilson attempted to and did use, persuade, induce, entice, and coerce various minors to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct. Further, the court was advised that from September 2019 to October 2019, Wilson distributed visual depictions, namely, images in computer graphic and digital files, the production of which involved the use of a minor engaging in sexually explicit conduct and, on May 15, 2021, Wilson knowingly possessed visual depictions, namely, videos and images in computer graphic and digital files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Ranjan scheduled sentencing for March 30, 2023, at 11:00 a.m. The law provides for a total sentence of not less than fifteen 15 years and not more than life imprisonment, a fine of up to $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, Wilson remains detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations – Pittsburgh, the Pennsylvania State Police, and the Derry Police Department conducted the investigation that led to the prosecution of Wilson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cumberland County Man Sentenced to Eight Years in Prison for Child PornographyRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 96 months in prison for distributing and possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Edwin Torres, aka “Macho Torres,” 39, of Bridgeton, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams to one possession of child pornography. Judge Williams imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In May 2020, a user of a social media application uploaded to a public chat group multiple videos of child sexual abuse from an internet provider address linked to Torres’ residence. In September 2021, law enforcement agents executed search warrants at Torres’ residence and on a Google account associated with the social media account used to distribute the videos in May 2020. The Google account, which also had been accessed from Torres’ residence, contained over 100 videos of child sexual abuse, including videos whose content matched the videos distributed in May 2020. During the search of Torres’ residence, agents seized Torres’ cellular telephone, which had been used to access the same Google account.
In addition to the prison term, Judge Williams sentenced Torres to five years of supervised release and ordered him to pay $15,000 in restitution.
U.S. Attorney Sellinger credited special agents of the FBI Newark Child Exploitation and Human Trafficking Task force, and the Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the Camden Office.
Connecticut Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
CONCORD – Jabreel A. Amir, 41, of Waterbury, Connecticut, pleaded guilty in federal court to drug trafficking charges, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in May 2022, Amir arranged with an individual who was cooperating with the United States Drug Enforcement Administration (“DEA”) to deliver a quantity of cocaine to this individual in New Hampshire. On May 9, 2022, law enforcement officers surveilled Amir as he travelled from Waterbury, Connecticut to New Hampshire to conduct the drug sale and stopped Amir’s vehicle in Concord, New Hampshire. A search of Amir’s vehicle resulted in the seizure of approximately more than 2 kilograms of cocaine.
Amir is scheduled to be sentenced on March 22, 2023.
This matter was investigated by the United States Drug Enforcement Administration with the assistance of the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer C. Davis.
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Concord Man Pleads Guilty to Firearms OffensesRead the Press Release
CONCORD – Brandon Dumont, 30, of Concord, pleaded guilty in federal court to making a false statement in connection with the attempted acquisition of a firearm, and possession of firearms and ammunition by a prohibited person, United States Attorney Jane E. Young announced today.
According to statements made in court, Dumont is prohibited from possessing firearms and ammunition by virtue of a prior felony conviction. On April 2, 2022, Dumont attempted to purchase a rifle from Wal-Mart, a federally licensed firearms dealer, in North Conway, New Hampshire. Dumont falsely represented that he had never been convicted of a felony when, in fact, he had previously been convicted of a felony. On April 8, 2022, Dumont purchased over 400 rounds of ammunition from a gun store in Hooksett, New Hampshire. On April 11, 2022, Dumont possessed three firearms, including a revolver and a .45 caliber pistol
Dumont is scheduled to be sentenced on March 21, 2023.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Concord Police Department, and the Londonderry Police Department. It is being prosecuted by Assistant U.S. Attorney Anna Krasinski and Assistant U.S. Attorney Aaron Gingrande.
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Clearfield Man Sentenced to 120 Months in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Clearfield, PA, has been sentenced in federal court to a total of 120 months in prison followed by 5 years of supervised release on his conviction of conspiracy to distribute methamphetamine, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Logan Mactavish, age 40.
According to information presented to the court, from July 2019 to June 2020, Mactavish conspired to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the successful prosecution of Mactavish. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CEO of Medical Device Company Sentenced to Two Years in Prison for Tax EvasionRead the Press Release
MINNEAPOLIS– A Mounds View man has been sentenced to 24 months in prison followed by two years of supervised release and ordered to pay $6,058,980 in restitution for failing to pay payroll taxes for several years, announced U.S. Attorney Andrew M. Luger.
According to the plea agreement and other court documents, Larry Wallace Lindberg, 68, was a pharmacist and the CEO of Midwest Medical Holdings LLC, a Mounds View-based pharmaceutical and medical equipment company. As the owner and CEO of the company, Lindberg was responsible for filing tax returns and paying taxes on behalf of the company. Lindberg failed to pay the Internal Revenue Service (“IRS”) several hundred thousand dollars in federal payroll taxes each quarter. In all, Lindberg owes more than $6 million to the IRS.
Beginning in 2011, the IRS spent years attempting to collect on the tax debt. Lindberg entered into several installment agreements with the IRS in which he agreed to make regular payments towards the tax debt, but ultimately failed to make the payments and defaulted on each of the agreements. When the IRS attempted to collect on the tax debt, Lindberg took steps to evade the collection efforts by hiding his assets from the IRS. Among other things, Lindberg regularly diverted money from his company to other entities and used it to purchase real estate and other assets, and to fund his personal lifestyle. He also put assets in the name of his children, including an airplane, airplane hangar, and two vacation homes in Florida, in order to conceal his ownership and control from the IRS.
Lindberg pleaded guilty on April 21, 2022, to one count of tax evasion. Lindberg was sentenced today in U.S. District Court by Judge Katherine M. Menendez
This case is the result of an investigation conducted by the IRS Criminal Investigation Division.
Assistant U.S. Attorney Joseph H. Thompson prosecuted the case.
Boston Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Boston man pleaded guilty today to drug trafficking offenses in connection with distributing multiple kilograms of fentanyl and thousands of counterfeit fentanyl pills to undercover agents.
Luis Sonier Bautista Moreta, 26, pleaded guilty to two counts of distribution and possession with intent to distribute 400 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Richard G. Stearns scheduled sentencing for April 26, 2023. Bautista was indicted in January 2022 and has been in custody since his arrest in November 2021.
Bautista’s relative negotiated two sales of fentanyl to an undercover officer. Bautista handled the sales transactions, which took place on Oct. 22, 2021 in Attleboro and on Nov. 1, 2021 in Dorchester. Both times, Bautista entered the car of a cooperating source acting on behalf of the undercover officer and delivered fentanyl. The first transaction involved one kilogram of fentanyl and 6,000 counterfeit pills containing fentanyl; the second transaction involved an additional kilogram of fentanyl. Bautista’s relative arranged for Bautista to sell 1,000 more pills to the undercover officer on Nov. 5, 2021, but Bautista left before completing the deal. , On Nov. 10, 2021, a search of Bautista’s residence resulted in the seizure of 1,000 pills containing fentanyl.
The charge of distribution and possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years and up to life of supervised release, and a fine of up to $10 million. The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Boston Police Department. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Bvi Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Shannon John, 37, of Tortola, British Virgin Islands, pleaded guilty before Magistrate Judge Emile A. Henderson, III, to Conspiracy to Possess with intent to Distribute Cocaine while onboard a Vessel Subject to the Jurisdiction of the United States.
According to court documents, on January 9, 2022, Customs and Border Protection Air and Marine agents detected a vessel with bales of suspected cocaine in plain view on the deck of the vessel. The vessel was traveling on the northeast side of St. Croix heading north towards the British Virgin Islands. Upon further investigation, agents encountered a 32-foot Manta low-profile vessel with twin 300 HP outboard engines located at approximately 19 nautical miles northeast of St. Croix in international waters in an area known by law enforcement for drug trafficking. The vessel was dead in the water and displayed no indicia of nationality, flag nor registration, and was determined to be a vessel without nationality, thus subject to the jurisdiction of the United States. Onboard the vessel, agents discovered four occupants later identified as Shannon John, Sean John, Emmanuel Tolentino-Lebron and Augusto Rodriguez-Molina, along with 21 bales wrapped in plastic and encased in rope. Drug Enforcement Administration laboratory analysis later confirmed that the bales recovered from the vessel contained approximately 567 kilograms of cocaine hydrochloride. Defendants Sean John and Tolentino-Lebron pleaded guilty on December 7, 2022, to the conspiracy charge. At sentencing, the defendants face a mandatory minimum sentence of 10 years in prison. A federal District Court judge will determine their sentence after considering the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Coast Guard, Homeland Security Investigation, Customs and Border Protection and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Melissa P. Ortiz. 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.
Armed Indianapolis Drug Dealer Sentenced to 55 Months in Federal Prison for Trafficking Heroin and CocaineRead the Press Release
INDIANAPOLIS- Donte Hill, 31, of Indianapolis, was sentenced to 55 months in federal prison for Possession with Intent to Distribute Heroin and Cocaine.
According to court documents, on March 1, 2022, at approximately 7:30pm, Indianapolis Metropolitan Police Department (IMPD) officers responded to reports of shots fired near the area of 21st Street and Post Road. Upon their arrival, officers observed a Black Audi SUV stopped at a nearby intersection with a missing rear-end license plate. At 21st and Sussex Avenue, officers activated their emergency overhead lights and attempted to stop the Audi for the violation. The driver, later identified as Donte Hill, fled at a high rate of speed, and led officers on a chase covering approximately two miles before he fishtailed and crashed into an unmarked police vehicle near 38th Street and Tutor Park Drive.
Donte Hill exited the driver side of the inoperable Audi and fled the scene on foot. As officers gave chase, they observed Hill put his right hand directly inside his hooded sweatshirt. The handle of a firearm was protruding from the front pocket. Hill continued to ignore verbal commands from law enforcement officers and fled toward Mitthoeffer road, running through thick vegetation and brush. Officers were able to make contact with Hill and placed him under arrest.
Officers located a black handgun, $1,278 in cash, a .45 caliber magazine and approximately 14 grams of cocaine on Hill’s person. At the time of his arrest, Hill was also wearing a body armor vest. A search of the Audi led to the discovery of another firearm, a digital scale, 21.8 grams of heroin, approximately 69 grams of marijuana, and approximately 48 grams of marijuana edibles. In his guilty plea, Hill admitted he intended to distribute the illegal drugs.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, and IMPD Chief Randal Taylor made the announcement.ATF and IMPD investigated the case. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Hill be supervised by the U.S. Probation Office for 3 years following his release from federal prison. Hill was also issued a $500.00 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Peter A. Blackett, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Anchorage Woman Sentenced to 20 Years for KidnappingRead the Press Release
ANCHORAGE – An Anchorage woman was sentenced today by U.S. District Judge Joshua M. Kindred to 20 years in prison for kidnapping an 18-year-old victim.
According to court documents, Nellie Sherry Serradell, 28, attempted to stop multiple vehicles as she walked in and out of traffic on Dimond Boulevard in the early morning hours of November 17, 2019. The 18-year-old-victim was driving to work at 5:48 a.m. when Serradell ran in front of her vehicle at Dimond and C Street. The victim agreed to give Serradell a ride to her workplace. When they arrived in the parking lot, Serradell grabbed the victim and told her she had a gun and that she needed to keep driving. After punching the victim in the face several times, Serradell directed her to drive to a trailer park on Muldoon Road where she sexually assaulted the victim. In an effort to get Serradell to stop, the victim offered to give her money and Serradell agreed they could drive to an ATM machine. As they drove, Serradell fell asleep and the victim pulled into a gas station on 15th Ave., quietly got out of the car, went inside and called 911. Serradell woke up, saw the victim in the gas station, and drove off in the victim’s car. Serradell was arrested the next day in a nearby motel, wearing the victim’s brown Bearpaw boots. Investigators recovered the victim’s car abandoned on Boniface Parkway and found Serradell’s DNA in two places inside the passenger compartment. She pleaded guilty to the federal kidnapping charge on July 25, 2022.
“The victim was trying to be a good Samaritan, helping someone who was flagging down cars in the street,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The defendant took advantage of the victim’s kind nature by kidnapping and assaulting her. When individuals such as the defendant threaten the safety our community, they will be met with certain justice.”
The FBI and the Anchorage Police Department investigated the case.
Assistant U.S. Attorney Christopher Schroeder prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Academy Mortgage Corporation Agrees to Pay $38.5 Million to Settle False Claims Act Allegations Related to Mortgages Insured by the Federal Housing AdministrationRead the Press Release
Mortgage company Academy Mortgage Corporation (Academy), based in Draper, Utah, has agreed to pay $38.5 million to resolve allegations it violated the False Claims Act by improperly originating and underwriting mortgages insured by the Federal Housing Administration (FHA).
The settlement announced today resolves a lawsuit filed and litigated by former Academy underwriter Gwen Thrower (Thrower) against Academy under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery.
In her lawsuit filed in the Northern District of California, Thrower alleged that from January 2008 through April 2017, Academy had an underwriting process that led employees to disregard FHA rules and falsely certify compliance with underwriting requirements. Thrower further alleged that, as a result of Academy’s knowingly deficient mortgage underwriting practices, the government paid insurance claims on loans improperly underwritten by Academy.
“Lenders that knowingly cause the government to guarantee loans that are materially deficient put both homeowners and the public fisc at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The settlement announced today is a result of the relator’s efforts to develop this case in litigation and complements the department’s actions to prevent abuse of government programs designed to foster home ownership.”
Under the terms of the settlement, Academy will pay $38,500,000 to the United States. Thrower will receive $11,511,500 as her share of the settlement proceeds.
The case is captioned United States of America ex rel. Gwen Thrower v. Academy Mortgage Corporation, No. 3:16-cv-2120-EMC, and was monitored by the U.S. Attorney’s Office for the Northern District of California and the Civil Division’s Commercial Litigation Branch.
The department has recovered billions of dollars under the False Claims Act from other lenders accused of knowingly violating FHA underwriting requirements.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
11 Members of Bronx “Wash” Gang Charged with Murder, Racketeering, and Related Violent OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Frank A. Tarentino III, Special Agent in Charge of the New York Office of the Drug Enforcement Administration (“DEA”), and Keechant L. Sewell, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of a Superseding Indictment charging Boss Terrell, a/k/a “Sauce,” Yaurel Centeno, a/k/a “Flex,” Lydell Seymore, a/k/a “Bugout,” Darrell Spencer, a/k/a “Rell,” Isaiah Thomas, a/k/a “Zay,” a/k/a “Chicago,” Jacob Baker, Tyshawn Brogdon, a/k/a “Shawn,” Rasheed Chapman, a/k/a “Ra,” Mamadou Diallo, a/k/a “Haji,” a/k/a “Aladje,” Antwan Mosley, a/k/a “Ant,” and Noel Carr, a/k/a “Noey,” with racketeering conspiracy and other crimes related to their membership in “WashSide” or “Wash,” a street gang based in the Bronx, New York. TERRELL, CENTENO, and SPENCER were also charged with the murder of Tyrone Almodovar, who was shot to death on June 26, 2020, in the Morrisania neighborhood in the South Bronx. TERRELL, THOMAS, BAKER, CHAPMAN, MOSLEY, and CARR were further charged with multiple other violent crimes in aid of racketeering, including attempted murder and assault with a dangerous weapon, arising from three further shootings and one slashing similarly committed in the South Bronx between July 2020 and August 2022. CENTENO, SEYMORE, THOMAS, BROGDON, and DIALLO were also charged for their role in committing four robberies, two of which were carjackings. The case is assigned to United States District Judge Jesse M. Furman.
TERRELL was already in custody in connection with charges contained in a previous indictment in this case. SEYMORE is in federal custody in connection with charges filed in another case in Manhattan federal court. CENTENO and DIALLO are in federal custody serving prison sentences in connection with prior federal cases in this District. THOMAS and CARR are in state custody and will be transferred into federal custody. SPENCER, BROGDON, CHAPMAN, and MOSLEY were arrested this morning in the South Bronx and East Harlem and are expected to be presented later today before Chief United States Magistrate Judge James L. Cott. BAKER is a fugitive.
U.S. Attorney Damian Williams said: “The members of ‘Wash,’ as alleged in today’s charges, terrorized neighborhoods in the Bronx and beyond by killing, shooting, slashing, and robbing other people. Through these charges, we will hold Wash’s members accountable not only for the murder of Tyrone Almodovar, but for countless other crimes they committed in New York City and other states across the country.”
DEA Special Agent in Charge Frank A. Tarentino III said: “Gang violence and drug trafficking are plagues to New Yorkers quality of life. The gang members charged today spread violence, terror, and dangerous drugs like Spice/K2 and crack cocaine throughout our city streets. Thanks to the tenacity of the New York City Police Department, members of DEA’s Group D-22, and U.S. Attorney’s Office for the Southern District of New York, eleven members of the “Wash” Gang are facing the consequences of their alleged crimes.”
NYPD Commissioner Keechant L. Sewell said: “Today, New York City is safer because of the dedicated efforts of our NYPD investigators and our law enforcement partners. This case is further proof that the deadly combination of gangs, guns, and drugs will never be tolerated in our city, and that the NYPD will always work to hold every violent offender accountable for their actions. I want to thank the U.S. Attorney’s Office for the Southern District of New York, the Drug Enforcement Administration’s New York Division, and everyone else who contributed to this important investigation.”
According to the allegations in the Superseding Indictment filed today in federal court and statements previously made on the record in this case and related matters:[1]
From at least 2015 to 2022, the members of “WashSide” or “Wash,” a criminal enterprise based in the Bronx, New York, committed multiple acts of violence against members of rival street gangs and others. To make money for the gang, protect the gang’s territory, and promote the gang’s standing, members of Wash engaged in, among other things, armed robberies and carjackings, drug trafficking, wire fraud, and violence, including murder, attempted murder, and assaults with dangerous weapons. The members of Wash also travelled outside New York City and New York State, robbing and stealing from stores across the Northeast and in other states. In social media posts, the members of Wash celebrated all of the above criminal conduct.
For years, Wash engaged in disputes with rival crews in the South Bronx, which resulted in numerous acts of violence. Among these were the following:
- The murder of Tyrone Almodovar after a car chase in the Bronx on June 26, 2020, in which TERRELL, SEYMORE, CENTENO and SPENCER all participated;
- TERRELL shot at rival gang members on July 29, 2020;
- THOMAS and MOSLEY participated in a drive-by shooting that targeted rival gang members but injured two innocent bystanders on August 21, 2021; and
- BAKER and CHAPMAN participated in another shooting that similarly resulted in an innocent bystander being struck on August 19, 2022.
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A chart containing the names of the defendants who were charged today and the charges and minimum and maximum penalties they face is attached. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the NYPD and DEA and also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives as well as the Bronx County District Attorney’s Office for their assistance in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Courtney L. Heavey and Thomas John Wright are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Charges
Minimum and Maximum Penalties
Boss Terrell,
a/k/a “Sauce”
22
Racketeering Conspiracy, Conspiracy to Commit Murder in Aid of Racketeering, Murder in Aid of Racketeering, Use of a Firearm Resulting in Death, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon
Mandatory life in prison or death
YAUREL CENTENO,
a/k/a “Flex”
21
Racketeering Conspiracy, Conspiracy to Commit Murder in Aid of Racketeering, Murder in Aid of Racketeering, Use of a Firearm Resulting in Death, Robbery
Mandatory life in prison or death
Lydell Seymore,
a/k/a “Bugout”
19
Racketeering Conspiracy, Carjacking, Robbery, Use of a Firearm for Carjacking and Robbery
Maximum of life in prison; mandatory minimum seven years in prison to run consecutive to any other sentence
Darrell Spencer,
a/k/a “Rell”
25
Racketeering Conspiracy, Conspiracy to Commit Murder in Aid of Racketeering, Murder in Aid of Racketeering, Use of a Firearm Resulting in Death
Mandatory life in prison or death
Isaiah Thomas,
a/k/a “Zay,”
a/k/a “Chicago”
24
Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon; Robbery, Use of a Firearm for Robbery
Maximum of life in prison; mandatory minimum 17 years to run consecutive to any other sentence
Jacob Baker
18
Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon
Maximum of life in prison; mandatory minimum 10 years to run consecutive to any other sentence
Tyshawn Brogdon,
a/k/a “Shawn”
20
Racketeering Conspiracy, Carjacking, Robbery, Use of a Firearm for Carjacking and Robbery, Wire Fraud Conspiracy, Aggravated Identity Theft
Maximum of life in prison; mandatory minimum seven years to run consecutive to any other sentence
Rasheed Chapman,
a/k/a “Ra”
19
Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon
Maximum of life in prison; mandatory minimum 10 years to run consecutive to any other sentence
Mamadou Diallo,
a/k/a “Haji,” a/k/a “Aladje”
23
Racketeering Conspiracy, Carjacking, Robbery, Use of a Firearm for Carjacking and Robbery
Maximum of life in prison; mandatory minimum seven years to run consecutive to any other sentence
Antwan Mosley,
a/k/a “Ant”
21
Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon, Wire Fraud Conspiracy, Aggravated Identity Theft
Maximum of life in prison; mandatory minimum 12 years to run consecutive to any other sentence
Noel Carr,
a/k/a “Noey,”
22
Racketeering Conspiracy, Assault with a Dangerous Weapon in Aid of Racketeering, Wire Fraud Conspiracy, Aggravated Identity Theft
Maximum of 62 years in prison; mandatory minimum two years to run consecutive to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
13 December 2022
Winner Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Winner, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on December 12, 2022.
Glenford Old Lodge, age 33, was sentenced to 13 months federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Old Lodge was indicted for Failure to Register by a federal grand jury in March of 2022. He pleaded guilty on September 1, 2022.
Between September 2, 2021 and September 5, 2021, Old Lodge, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction of federal law, knowingly failed to register and update his registration.
This case was investigated by the U.S. Marshals Service, Pierre Police Department, and the Winner Police Department. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Old Lodge was immediately remanded to the custody of the U.S. Marshals Service.
United States Files False Claims Act Complaint Against Chiropractor, Modern Vascular Office-Based Labs and Modern Vascular Corporate EntitiesRead the Press Release
The United States filed a complaint under the False Claims Act against Yury Gampel, a chiropractor, 15 Modern Vascular office-based labs located throughout the United States primarily owned by Gampel, and five Modern Vascular-affiliated companies owned by Gampel, for engaging in allegedly illegal financial relationships and transactions. Office-based labs, such as the ones named as defendants here, are an extension of a physician’s office where physicians conduct examinations and procedures on an ambulatory basis.
“Improper financial arrangements between health care providers and referring physicians can lead to overutilization and increase the cost of health care services paid by taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to ensure that health care decisions are based on the needs of patients and not the financial interests of providers.”
The United States’ complaint alleges that from at least Jan. 1, 2018, through June 30, 2022, Gampel and the Modern Vascular defendants offered physicians the opportunity to invest in Modern Vascular office-based labs to induce them to refer their Medicare and TRICARE patients to Modern Vascular for the treatment of peripheral arterial disease. The complaint also alleges that Gampel pressured vascular surgeons and interventional radiologists employed at the Modern Vascular office-based labs to increase the number of invasive surgical procedures performed by tracking procedures and setting aggressive weekly and monthly goals for such procedures.
The entities named as defendants in connection with Gampel’s alleged schemes are Nobility Management LLC; Modern Vascular LLC; Modern Vascular of South Florida LLC; Modern Vascular Management LLC; Modern Vascular Management – East LLC; Modern Vascular Management – West LLC; Modern Vascular Institute LLC; Modern Vascular of Mesa LLC; Modern Vascular of Glendale LLC; Modern Vascular of Sun City LLC; Modern Vascular of Tucson LLC; San Antonio Vascular Specialists Corp. dba Modern Vascular; Fort Worth Vascular Specialists Corp. dba Modern Vascular; Modern Vascular of Denver LLC; Modern Vascular - Navajo LLC; Modern Vascular of Fairfax LLC; Modern Vascular of Housto LLC; Modern Vascular of Indianapolis LLC; Modern Vascular of Southaven LLC; Modern Vascular of St. Louis LLC; and Modern Vascular of Kansas LLC.
“As part of our mission to protect the American people, the FBI remains committed to safeguarding patients who rely on our healthcare systems,” said Deputy Assistant Director Aaron Tapp of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners will continue to investigate those who abuse our healthcare systems, place patients at risk, and waste taxpayer dollars.”
The United States filed its complaint in three consolidated lawsuits pending in the United States District Court for the District of Arizona under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, a private citizen can sue on behalf of the government and share in any recovery. The United States is also entitled to intervene in the lawsuits, as it did in these cases.
This matter is being handled by the Commercial Litigation Branch of the Department of Justice’s Civil Division and the U.S. Attorney’s Office for the District of Arizona. The FBI, the Department of Health and Human Services Office of Inspector General, and the Defense Criminal Investigative Service provided substantial assistance in the investigation.
The consolidated cases are U.S. ex rel. Radhakrishnan, et al. v. Gampel, et al., No. CV-20-00176-PHX-GMS (D. Ariz.); U.S. ex rel. Terry, et al. v. Modern Vascular of Glendale, LLC, No. CV-21-00010-PHX-GMS (D. Ariz.); and U.S. ex rel. Jane Doe v. Modern Vascular, LLC, et al. No. CV-21-01206-PHX-GMS (D. Ariz.).
The United States is represented in this matter by Fraud Section Trial Attorneys Jared S. Wiesner and Adithi S. Grama, in conjunction with the United States Attorney’s Office for the District of Arizona.
The claims asserted in this action are allegations only and there has been no determination of liability.
United States Attorney Kavanaugh Names AUSA Michael Baudinet Environmental CoordinatorRead the Press Release
CHARLOTTESVILLE, Va. – United States Attorney Christopher R. Kavanaugh has appointed Assistant United States Attorney Michael Baudinet to serve as Environmental Justice Coordinator for the Western District of Virginia.
Assistant United States Attorney Baudinet has investigated and prosecuted multiple environmental cases, and as the District’s Environmental Justice Coordinator, AUSA Baudinet will continue to lead efforts to enforce our Nation’s environmental laws, including the Clean Air Act, Clean Water Act, and various hazardous waste laws. In addition, the Environmental Justice Coordinator will work to focus on investigating and prosecuting environmental violations that have disproportionate impact on low-income, minority, and other marginalized communities, including pursuing actions under the civil rights laws, worker safety and consumer protection statutes, and the False Claims Act.
Last month, the U.S. Attorney’s Office successfully tried and convicted an individual for stealing timber from the Army Corps of Engineers Bluestone Project and selling it for financial gain. Another individual had previously pled guilty in connection with the same scheme.
“Our District is home to some of the most beautiful outdoor landscapes in the country and protecting these valuable natural resources is a priority for our Office,” United States Attorney Kavanaugh said today. “The addition of an Environmental Justice Coordinator strengthens this Office’s longstanding commitment to prosecuting environmental crimes in order to ensure clean air, water, and land for our District’s residents.”
The Western District of Virginia is home to the Blue Ridge Environmental Crimes Task Force, the United States’ longest running environmental crimes task force. It comprises local, state, and federal criminal investigators, emergency responders, prosecutors, civil enforcement personnel, health department personnel, technical personnel, and individuals associated with critical utilities.
The public can report suspected violations of environmental and hazardous waste laws to the U.S. Attorney’s Office by calling (540) 857-2250 or by contacting the Environmental Protection Agency.
United States Attorney Announces Charges Against FTX Founder Samuel Bankman-FriedRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the United States Attorney General, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging SAMUEL BANKMAN-FRIED, a/k/a “SBF,” with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations. The charges in the Indictment arise from an alleged wide-ranging scheme by the defendant to misappropriate billions of dollars of customer funds deposited with FTX, the international cryptocurrency exchange founded by the defendant, and mislead investors and lenders to FTX and to Alameda Research, the cryptocurrency hedge fund also founded by the defendant. BANKMAN-FRIED was arrested yesterday in the Bahamas on these charges and will be presented before a Bahamian magistrate judge today.
U.S. Attorney Damian Williams said: “One month ago, FTX collapsed, causing billions of dollars in losses to its customers, lenders, and investors. Now, a federal grand jury in New York has indicted the former founder and chief executive officer of FTX and charged him with crimes related to the phenomenal downfall of that one-time cryptocurrency exchange, including fraud on customers, investors, lenders, and our campaign finance system. As today’s charges make clear, this was not a case of mismanagement or poor oversight, but of intentional fraud, plain and simple.”
Attorney General Merrick B. Garland said: “The Justice Department has filed charges alleging that Samuel Bankman-Fried perpetrated a range of offenses in a global scheme to deceive and defraud customers and lenders of FTX and Alameda, the defendant’s crypto hedge fund, as well as a conspiracy to defraud the United States government. We allege that the defendant conspired to defraud customers by misappropriating their deposits; to defraud lenders; to commit securities fraud and money laundering; and to violate campaign finance laws. As this indictment demonstrates, the U.S. Department of Justice will aggressively investigate and prosecute alleged criminal wrongdoing in the financial system and violations of federal elections laws. We will continue to work to ensure U.S. capital markets operate honestly and with the integrity that investors, lenders, and the American people are entitled to.”
FBI Assistant Director Michael J. Driscoll said: “As the indictment today alleges, Bankman-Fried knowingly defrauded the customers of FTX.com through the misappropriation of the customer deposits to pay expenses and debts of a different company he also owned as well as make other investments. If you deceive and defraud your customers, the FBI will be persistent in our efforts to bring you to justice.”
As alleged in the Indictment unsealed in Manhattan federal court and court filings:[1]
SAMUEL BANKMAN-FRIED was the founder and chief executive officer of FTX, an international cryptocurrency exchange. Since 2019, the defendant and his co-conspirators perpetrated a scheme to defraud customers of FTX by misappropriating billions of dollars of those customers’ funds. As alleged, the defendant used billions of dollars of FTX customer funds for his personal use, to make investments and millions of dollars of political contributions to federal political candidates and committees, and to repay billions of dollars in loans owed by Alameda Research, a cryptocurrency hedge fund also founded by the defendant. BANKMAN-FRIED also allegedly defrauded lenders to Alameda Research and equity investors in FTX by concealing his misuse of customer deposits in financial information that was provided to them.
SAMUEL BANKMAN-FRIED and his co-conspirators made millions of dollars in political contributions funded by Alameda Research to federal political candidates and committees in advance of the 2022 election. To conceal the fact that those contributions were paid for using funds from a corporation and to evade contribution limits and reporting requirements, BANKMAN-FRIED caused contributions to be reported in the names of co-conspirators rather than in the name of the true source of the funds.
* * *
SAMUEL BANKMAN-FRIED, 30, of Stanford, California, is charged with two counts of wire fraud conspiracy, two counts of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years. He is also charged with conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to defraud the United States and commit campaign finance violations, each of which carries a maximum sentence of five years.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI. He also expressed appreciation for the assistance of the Justice Department’s Office of International Affairs, National Cryptocurrency Enforcement Team, Public Integrity Section, and the Drug Enforcement Administration, as well as that of the Securities and Exchange Commission and the Commodity Futures Trading Commission, both of which separately initiated civil proceedings against the defendant today. Mr. Williams further thanked the Bahamas Office of the Attorney-General & Ministry of Legal Affairs as well as the Royal Bahamas Police Force for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicolas Roos and Danielle Sassoon are in charge of the prosecution. The Money Laundering and Transnational Criminal Enterprises Unit and Assistant U.S. Attorneys Samuel Raymond and Thane Rehn also contributed to the investigation.
The allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney's Office Announces New Public Procedures to Report Environmental ConcernsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that members of the public who have concerns regarding environmental issues within our community can now report those concerns to the U.S. Attorney’s Office as well as other federal and state agencies.
In making the announcement, U.S. Attorney Ross stated: “Strong and fair enforcement of environmental and public health laws ensures a healthy community for all families to live, learn, play, and work. Your reporting of public health and safety concerns supports environmental protection and environmental justice.”
These environmental concerns can include:
o Air quality
o Water pollution
o Dumping, burying, or burning of chemicals or toxic waste
o Climate Change
o Health
o Workplace conditions
o Wildlife, including pesticide application
o Wetland destruction
o Medications, cosmetics, and biological products
o Oil and chemical spills
o Discriminatory environmental and health impacts caused by recipients of federal funds
To report concerns, contact Environmental Justice Coordinator Aaron J. Mango at (716) 843-5700 or email USANYW.Environment@usdoj.gov.
For more information and a complete listing of reporting agencies, go to: /media/1250996/dl?inline#Environmental%20Justice%20Program.
# # # #Two Philadelphia Men Found Guilty of Armed Robberies of Two City PharmaciesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jon Suggs, 31, and Nickolas Passineau 31, both of Philadelphia, PA were both convicted at trial of two counts of Hobbs Act Robbery, and one count of using a firearm in relation to a crime of violence arising from the armed robberies of two pharmacies in Philadelphia.
In March 2020, the defendants were charged by Superseding Indictment with two armed-robbery incidents in late 2017 and early 2018. Five other co-defendants were also charged in connection with the incidents, all of whom have since pleaded guilty. Evidence presented at trial demonstrated that Suggs and Passineau used the “take-over method” in both robberies: donning masks, and holding their victims at gunpoint to demand large quantities of narcotics, including opioids, promethazine, fentanyl, and morphine. The defendants also became violent during the robberies – pistol whipping, punching and kicking their pharmacy-employee victims. The estimated value of the controlled substances obtained by the defendants in the second robbery alone was $60,000. Philadelphia Police officers executed a search warrant of defendant Suggs’ residence and found ammunition, over $19,000 in cash, and clothing that matched witness descriptions of one of the robbers.
“Suggs, Passineau and their cohorts threatened the lives of pharmacy employees with weapons and physical violence, and stole thousands in controlled substances which undoubtedly wound up on the streets,” said U.S. Attorney Romero. “These defendants made terrible choices, for which they have now been held accountable by a federal jury.”
“Violent takeover robberies are terrifying for victims who are going about their daily duties to make a living when guns are put in their faces and they are assaulted,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “Suggs and Passineau were determined to steal valuable narcotics and didn't care who they hurt in the process. These convictions will keep them off the street and are a measure of justice for their victims.”
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, Philadelphia Police Department, Bloomsburg University Police Department, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Meaghan Flannery.
Triangle CEO Pleads Guilty to Filing False Tax ReturnsRead the Press Release
RALEIGH, N.C. – Raleigh business owner Alton Perkins, pled guilty yesterday for failing to account for approximately three-million dollars diverted from his companies for his own personal use between 2015 and 2018.
“Hardworking, taxpaying Americans deserve to know that the government will hold accountable tax cheats who dodge paying their fair share,” said U.S. Attorney Michael Easley. “This CEO tried to dodge paying his due by diverting company money to pay for vacations, expensive jewelry, and private school tuition. Yesterday he paid full price with a guilty plea.”
“People who create elaborate schemes that have no purpose other than to mislead others and defraud the IRS run the very high risk of prosecution" said Donald “Trey” Eakins, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge of the Charlotte Field Office.
According to evidence summarized in court, Perkins moved large amounts of money from his business accounts into his personal bank accounts. These funds were then used for personal expenditures. None of the approximately three million spent by Perkins on these personal items was accounted for in his taxes filed with the IRS.
Perkins is the chairman and CEO of AmericaTowne, a company, according to its website, focused on increasing exports of American products to China. AmericaTowne, which was funded by investor dollars, included a plan to build an American-style community in China that would include hotels, small businesses, and a theme park. Perkins is currently involved in a civil lawsuit with the U.S. Securities and Exchange Commission (Case No. 5:19-CV-00243-FL) over the unregistered private placement offerings and the sale of securities for AmericaTowne and other business entities controlled by Perkins.
In court, Perkins pled guilty to making and subscribing to false tax returns for his failure to account for his personal expenditures on his 2016 personal income tax return. According to evidence presented in court, for tax year 2016, Perkins stated that his total income was $21,933. However, banking records show that Perkins spent $1,208,394 that year on personal items including, a golf cart, a family trip to Hawaii, private high school tuition, and a Rolex – all with funds taken from Perkin’s corporate bank accounts.
Perkins pled guilty to one felony charge of Making and Subscribing a False Tax Return Under Penalty of Perjury, in violation of 26 U.S.C. § 7206(1). He faces up to three years in prison. According to the plea agreement, Perkins will make restitution in the amount of $520,344 to the IRS for taxes owed from 2015-2018.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after Magistrate Judge Robert B. Jones Jr. accepted the plea. The Internal Revenue Service Criminal 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-00265-FL.
Three Charlottesville Men Sentenced for Roles in Armed RobberiesRead the Press Release
CHARLOTTESVILLE, Va. - A trio of Charlottesville men, who threatened both an Albemarle County woman and a Charlottesville man at gunpoint in August 2021, were sentenced yesterday to federal prison terms.
Markel Corevis Morton, 43, Adrian Anderson, 40, and Quincy Brock, 27, all pled guilty in September 2022 to participating in a pair of armed robberies, and Morton and Brock also pled guilty to brandishing a firearm during a crime of violence.
On Monday, in federal district court in Charlottesville, Morton was sentenced to over 12 years in federal prison. Brock was sentenced to 10 years in federal prison and Anderson received a sentence of 24 months.
A fourth defendant, Corey Ramont Kinney, 48, previously pleaded guilty to similar charges and will be sentenced at a later date.
In August 2021, Morton recruited Brock, Anderson, and Kinney to rob a local drug dealer with the promise of splitting $50,000 in cash he believed to be hidden in an apartment in Albemarle County. While Morton waited offsite, Brock, Anderson, and Kinney forced entry into the apartment and held a female victim at gunpoint as they searched the apartment and the female victim’s car. While not finding the $50,000 in cash, the trio of robbers nevertheless took the female victim’s phone and other personal items.
When they returned empty-handed, Morton insisted they locate the drug dealer’s cash at a second location on Prospect Avenue in the City of Charlottesville that same night. Armed with pistols, all four men drove to the second location and stole a safe containing approximately $50,000 as well as another victim’s purse. As they were leaving the apartment, Brock and Morton were intercepted by a man who was standing outside and one of them pointed their handgun at him as they fled the scene.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Special Agent in Charge of the FBI Richmond Division Stanley M. Meador, and Col. Sean Reeves, Chief of the Albemarle County Police Department announced the sentences.
The Albemarle County Police Department and the Federal Bureau of Investigation led the investigation of the case.
Assistant U.S. Attorneys Heather L. Carlton and Ronald M. Huber prosecuted the case for the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Texas Woman Sentenced to over Four Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. – A Texas woman was sentenced to 54 months in federal prison for conspiracy to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
According to court documents, in May and June, 2021, Raquel Herrera, 40, of McAllen, Texas, conspired with another to distribute methamphetamine to a confidential source in Hattiesburg, Mississippi. During this two month period, Herrera distributed over 15 kilograms methamphetamine.
In addition to the prison sentence, Herrera was ordered to pay a $5,000 fine.
The case is the result of an extensive investigation, dubbed “Don’t Tell On Me Bro,” which began as an operation targeting illegal drug trafficking in the Hattiesburg, Mississippi area. “Don’t Tell On Me Bro” 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.
The case was investigated by the Drug Enforcement Administration, Lamar County Sheriff’s Office, the Mississippi Bureau of Narcotics, Hattiesburg Police Department, Forrest County Sheriff’s Office, and the Columbia Police Department. It was prosecuted by Assistant United States Attorney Keesha Middleton.
Tampa Man Found Guilty of Unlawful Possession of Guns, Grenades and Classified Information Relating to National DefenseRead the Press Release
Tampa, FL – A federal jury convicted Jeremy Brown, 48, of Tampa, for possession of an unregistered sawed-off shotgun and an unregistered short-barreled rifle, two counts of possession of unregistered M67 fragmentation grenades, willful retention of national defense information and illegal storage of explosives.
According to evidence presented at trial, on Sept. 30, 2021, the FBI executed an arrest and search warrant at Brown’s residence in Tampa. During the search, agents found an unregistered AR-15-style rifle, modified to have a 10” barrel, in Brown’s bedroom. Agents also found a sawed-off shotgun, also unregistered, on a couch inside of Brown’s recreational vehicle (RV), which was parked near his home. Inside a briefcase next to the shotgun, agents found a classified Trip Report that Brown had authored shortly before he retired from the U.S. Special Forces. Inside the bedroom of that same RV, agents found an ammunition vest containing two M-67 fragmentation grenades hidden in the pockets. U.S. Army records confirmed that the grenades had originally been in the possession of the U.S. Army.
Trial evidence also established that Brown had served as a weapons sergeant in the Special Forces, which would have given him access to M-67 fragmentation grenades. Finally, the evidence established that the classified Trip Report contained highly sensitive information about U.S. Department of Defense intelligence – gathering tactics, techniques, and procedures, including information about a human source that, if released, could have caused the source to be arrested, tortured or killed.
Each count carries a maximum penalty of 10 years in federal prison. Brown was also found guilty of illegal storage of explosives and faces up to one year in prison for that offense. His sentencing hearing is scheduled March 13, 2023.
The FBI is investigating the case.
Assistant U.S. Attorney Daniel J. Marcet for the Middle District of Florida and Trial Attorney Menno Goedman of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Three Sentenced in Paul Girard’s Racketeer Influenced and Corrupt OrganiztionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Shaquielle Correa, 27, James Cruz, 28, and Shermyra Gumbs, 27, all of St. Croix, were sentenced by District Court Judge Timothy J. Savage for their roles in a Racketeer Influenced and Corrupt Organization (RICO) led by Paul Girard from his prison cell. In handing down the sentences, Judge Savage characterized the Girard Enterprise as a lawless, reckless, cruel and merciless gang. “The Paul Girard Criminal Enterprise was a vicious and lawless gang that terrorized and victimized the people of the Virgin Islands for years,” stated United States Attorney Delia Smith. “The tremendous work of the Federal Bureau of Investigations, the Virgin Islands Police Department, and attorneys from my office and the U.S. Department of Justice Criminal Division delivered the ultimate reward to the people of our Territory – just and lengthy sentences of imprisonment to those involved.”
"First, I want to thank the United States Attorney's Office for the District of the Virgin Islands for their great work and invaluable support in this investigation. I also want to highlight the work of the Virgin Islands Police Department, Drug Enforcement Administration, U.S. Marshals Service, U.S. Postal Service, Homeland Security Investigations, the Virgin Islands Marshal Service and the U.S. Office of Probation. Their support was instrumental to the dismantlement of this violent criminal enterprise. Today, the people of the Virgin Islands can rest a little easier, but there is more work to be done,” said FBI Special Agent in Charge Joseph Gonzalez who oversees FBI operations in the Virgin Islands.
According to court documents, on July 17, 2014, Shaquielle Correa and two other members of the Girard Enterprise, all wearing black ski masks and two wielding firearms, entered the cash cage area of the Divi Racino and demanded money. Correa and his co-conspirators fled the scene with approximately $110,804.00, which they later divided among themselves and other members of Girard’s Enterprise, including an incarcerated Girard who helped plan the robbery. Several days later, Correa's share of the robbery proceeds went missing and he believe Eddie Harriette, the brother of his girlfriend, had stolen his money to buy a new car. On July 21, 2014, Correa and other enterprise members approach Harriette after he stopped at a gas station near the St. Croix Agricultural Fairgrounds in his new car.
Thereafter, Correa fired several shots into Harriette’s vehicle killing him and injuring two of his passengers. Correa fled on foot and was later picked up by members of Girard’s Enterprise. Approximately ten days after Harriette’s murder, Virgin Islands Police Officers stopped Correa and co-defendant Shaquan Prentice in a vehicle that contained a 7.62 caliber AK-47-style Romania rifle and two high-capacity magazines, each containing 30 rounds of ammunition. The rifle’s serial number was obliterated. Correa entered a plea agreement where he admitted committing the armed robbery of the Divi Racino. Correa also admitted to murdering Harriette and to unlawfully possessing an AK-47 firearm, and possession with intent to distribute marijuana. He was sentenced to 272 months which was adjusted to 211 months by Judge Savage to account for time already served by Correa on the armed robbery conviction.Trial testimony further revealed that on December 21, 2014, enterprise member James Cruz and three other individuals kidnapped a bank employee. At the direction of Girard and a now deceased enterprise member, Cruz and his co-conspirators accosted the banker at gunpoint around midnight as she walked from her car to her front door. They forced the banker into her home where they gathered her two daughters, one of whom was pregnant, and her son and forced them to remain in the living room. Girard, who participated by cellphone from his prison cell, directed Cruz to enter the home to force the banker to take the enterprise members to her bank where she would give them access to the bank’s vault. After several hours of the banker explaining why their plan would not work, Cruz and the other assailants finally gave up and fled the scene. For his role, Cruz was sentenced to 144 months of imprisonment after pleading guilty to the kidnapping. As part of his plea agreement, Cruz further admitted that on May 26, 2014, he attempted to commit a carjacking with other enterprise members. During the attempted carjacking, enterprise member Lenn Williams shot at the driver who defended himself by returning fire with his licensed firearm. Williams was hit with the return fire and declared dead upon arrival at the Juan Luis Hospital.
Enterprise member Shermyra Gumbs was also sentenced to 100 months of imprisonment for her role in the September 4, 2015, murder of Jermaine “Bird” Williams. In her plea agreement, Gumbs admitted that she served as a lookout while enterprise members, including Robert Brown, shot Williams multiple times as he sat in his vehicle outside the St. George Christian Academy Head Start in St. Croix. As the murder was being committed, Gumbs was reporting the events by cellphone to an incarcerated Girard who ordered the murder. After Williams’ murder, Gumbs and another enterprise member returned the vehicle used in the homicide to an enterprise member who had rented the vehicle.
“These defendants terrorized the U.S. Virgin Islands through violence and theft,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “These sentences demonstrate that the Department of Justice and our law enforcement partners are committed to combating the threat of gang violence.”
This case was investigated by the Federal Bureau of Investigations and the Virgin Islands Police Department and was prosecuted by Assistant United States Attorney Meredith Edwards and Criminal Division Trial Attorneys Christopher Taylor, Organized Crime and Gang Section, and Marie Zisa, Human Rights and Special Prosecutions Section. The investigation 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.
Springfield Man Sentenced to 15 Years for Heroin Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin and for illegally possessing a firearm.
Derrick L. Hall, 52, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On June 29, 2022, Hall pleaded guilty to participating in a conspiracy to distribute heroin from May 15 to Sept. 18, 2019, and to possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Hall sold 14 grams of heroin to a confidential informant on two separate occasions and sold an additional 23 grams of heroin and a firearm to a confidential informant on a third occasion. Hall drove to St. Louis on Aug. 29, 2019, where he obtained approximately 50 grams of heroin that was seized from him in a traffic stop. He returned to St. Louis on Sept. 18, 2019, and encountered law enforcement officers when he returned home.
On Sept. 18, 2019, law enforcement officers executed a search warrant at Hall’s residence. Officers found a plastic bag that contained approximately 17.4 grams of heroin on top of the bedroom dresser, a plastic bag that contained approximately 48.2 grams of heroin inside a boot that was lying in between the bed and the nightstand, a plastic container that contained a plastic bag with approximately 2.8 grams of heroin on top of the nightstand, and a plastic bag that contained approximately a half gram of heroin in the trash can. Officers found a total of approximately 70 grams of heroin in Hall’s residence, a Sig Sauer firearm with ammunition, and $4,532 in cash inside a purse on the floor of the bedroom closet.
Officers also searched Hall’s car, which was parked in the driveway, and found a plastic bag that contained a white substance (consistent with a cutting agent for heroin) in the trunk of the vehicle. It was found near a bottle of Dormin, which is a cutting agent for heroin, and small plastic baggies, consistent with that used to package user amounts of heroin. Officers also found ammunition in the trunk of Hall’s car.
According to court documents, Hall’s criminal history began in 1987, when he was 17 years old and committed the crime of possession of cocaine. That same year, he attempted to rob someone and when the person said they had nothing for him to take, shot the person in the leg. In 1988 he was sentenced to 20 years in prison for assault and five years for possession of cocaine. In April 2011, Hall sold cocaine to an undercover police officer in St. Louis County, Mo., and was convicted of distributing a controlled substance. Hall also has seven convictions for stealing and was on parole at the time he committed the federal violations in this case.
This case was prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Drug Enforcement Administration and the Missouri State Highway Patrol.
Spanaway, Washington man sentenced to eight years in prison for key role in drug distribution ringRead the Press Release
Seattle – A 61-year-old Spanaway, Washington man was sentenced today in U.S. District Court in Seattle to eight years in prison for his key role in a large drug distribution ring, announced U.S. Attorney Nick Brown. Dwayne Douglas George was indicted in November 2021, along with 16 other defendants. George distributed significant amounts of methamphetamine and fentanyl in Western Washington, and acted as a courier, bringing large amounts of drugs to the northwest from California. U.S. District Judge John C. Coughenour noted “the large amount of methamphetamine and fentanyl in the case. Both are extremely dangerous and caused a lot of damage in this community.”
“Mr. George obtained as much as seven pounds of methamphetamine at a time directly from the leader of this drug distribution ring – and fed the addiction of countless people struggling in our community,” said U.S. Attorney Brown. “He also was poised to bring 80,000 fentanyl pills to our community. Both meth and fentanyl are claiming lives across western Washington.”
According to records filed in the case the investigation began in February 2020. Various people working with law enforcement provided information regarding the drug distribution activities. Aware of some of the group’s trafficking, law enforcement seized 9 pounds of methamphetamine in a traffic stop on May 16, 2020. Another 30 pounds of meth were seized in a stop on April 2, 2021, and 57 pounds of methamphetamine and 20,000 fentanyl pills were seized in a traffic stop on September 28, 2021. Additionally, on August 17, 2021, law enforcement seized 19 pounds of methamphetamine that conspirators attempted to mail to Fiji.
George helped the organization spread drugs to King, Pierce, Thurston, Lewis, Mason, and Kitsap counties.
“Mr. George was a large-scale distributor of illegal narcotics which have caused countless deaths and sorrow for many families in the Pacific Northwest,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “The DEA and all of its partners will continue to investigate, arrest and hold accountable individuals like Mr. George and those organizations that seek to bring harm to our communities.”
In asking for an eight-year prison sentence, prosecutors wrote to the court that George “…worked alongside members of a large transnational drug organization, selling pound-quantities of methamphetamine. Moreover, he also made the decision to get involved in the distribution of fentanyl, an incredibly dangerous and oftentimes lethal drug, that he never used himself. Based on his conduct, the amounts of drugs he was distributing, and his long criminal past, including more than 30 years of drug trafficking, George is not only deserving of a significant sentence, but such a sentence is also clearly necessary to protect the public.”
Judge Coughenour ordered George to serve four years of supervised release following his prison term.
This case is 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.
The investigation was led by the Drug Enforcement Administration (DEA) Seattle Field Division (SFD) Tacoma Resident Office (TRO) and Bremerton Police Department (BPD), with assistance from Tahoma Narcotics Enforcement (TNET); the Seattle, Puyallup, Auburn, Federal Way, Kent, Bonney Lake, Tacoma, and Lakewood Police Departments; the Pierce County Sheriff’s Office; Washington State Department of Corrections; Joint Narcotics Enforcement Team (JNET): Centralia and Chehalis Police Departments; Valley Narcotics Enforcement Team (VNET); and Washington State Patrol; Thurston Narcotics Team (TNT), Kitsap County Sheriff’s Office, and Mason County Sheriff’s Office; United States Postal Inspections Service (USPIS), Internal Revenue Service Criminal Investigation (IRS-CI), and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) with support from Northwest High Intensity Drug Trafficking Areas ( HIDTA).
The case is being prosecuted by Assistant United States Attorneys C. Andrew Colasurdo and William Dreher.
South Florida Cruise Ship Employee Sentenced to Prison for Sexually Exploiting Minor He Met on Alaskan VoyageRead the Press Release
MIAMI – Daniel Scott Crow, a 38-year-old cruise ship employee from Stuart, Fla., has been sentenced to 30 years in prison for enticing an underage girl he met on the ship into performing sexual acts with him and with producing child pornography by recording their sexual interactions.
According to the criminal complaint affidavit, Crow met the victim while he was working aboard a cruise ship. The victim, a 16-year-old girl at the time, was vacationing with her family aboard the ship. After the cruise, Crow remained in contact with the victim and used a messaging application to solicit lewd photographs from her. Crow also met the victim—who was still under 18—at a hotel, where he engaged in sexual activity with her and recorded it. Crow stored the conversations and videos involving the victim on his cell phone.
Crow was apprehended after an ex-girlfriend of his made a complaint to the Port St. Lucie Police Department regarding the relationship between Crow and the victim. The ex-girlfriend discovered the relationship by checking Crow’s social media.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI, Fort Pierce Office, investigated the case. Assistant U.S. Attorney Christopher Hudock prosecuted it.
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 the Criminal Division’s 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.projectsafechildhood.gov.
If you have information regarding child sexual exploitation, or you believe you or a family member may have been a victim, please contact the HSI tip line at 1-866-347-2423.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-CR-14035.
South African woman sentenced to prison for mailing controlled substances to Ohio inmatesRead the Press Release
COLUMBUS, Ohio – A South African woman was sentenced in U.S. District Court here today to 12 months and one day in prison for mailing large amounts of K2 and Suboxone via mail into the United States. Inmates in Ohio jails were the end recipients of the packages.
Tanya Baird, 46, of South Africa, was arrested by federal agents in March 2022 at John Glenn International Airport.
According to court documents, Baird obtained K2 from China and saturated legal documents with the substance in South Africa before mailing the papers to the United States.
“This office will not tolerate anyone sending controlled substances into jails or prisons in our District, no matter the method,” said U.S. Attorney Kenneth L. Parker. “Such conduct will earn individuals their own place in prison, as highlighted by Baird’s sentencing today.”
For example, in June 2021, Baird mailed at least eight packages each containing 30 pieces of saturated paper to an inmate in an Ohio prison.
Another individual sometimes received packages from Baird containing legal privileged documents that were saturated in K2. The individual would then send the legal documents into Ohio Department of Rehabilitation and Correction facilities and collect proceeds from inmates. The proceeds were then sent to Baird via CashApp or PayPal.
In total, import records showed 69 packages being sent from Baird into the United States from June through August 2021, 34 of which were destined for the Southern District of Ohio. Multiple recipients of the packages from Baird had been in communication with or attended visits with current Ohio Department of Rehabilitation and Correction inmates.
Baird pleaded guilty in June 2022 to conspiring to possess with intent to distribute K2.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and officials with the Ohio Department of Rehabilitation and Correction and U.S. Customs and Border Protection announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
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Sioux City Man Who Attacked an Occupied Home Sentenced to Federal PrisonRead the Press Release
A Sioux City, Iowa man who fired upon a home – with adults and children inside – was sentenced on December 9, 2022, to 6 years in federal prison.
Alvaro Vite, 26, from Sioux City, Iowa, received the prison term after an April 4, 2022, guilty plea to being a drug user in possession of a firearm and ammunition. At the time, Vite possessed the firearms and ammunition he was an unlawful user of cocaine.
Evidence in the case revealed that on June 23, 2020, Vite came to Joel Perea-Duenas’s residence and said he was going to “shoot up” the residence of a rival and needed a driver who could operate a “stick shift” vehicle. Perea-Duenas agreed to help, changed into dark clothing, left the residence with Vite, and joined
Esai Lopez and Alexander Laurel-Olea who were already in the car.
Three of the four men were armed with handguns. Laurel-Olea was in possession of a Taurus pistol, Vite had a Ruger pistol, and Lopez had a .45 caliber firearm.
The men drove to the home of their intended victim, but seeing law enforcement in the area, abandoned the initial attack. Later, the men decided upon a secondary target. At approximately 11:15 pm, Vite repeatedly fired upon a Sioux City, Iowa home. A mother, father and their five minor children were in the home. Eight bullet holes were found in the house.
The subsequent investigation revealed all the men knew the shooting was going to happen, knew there were people, including children, in the house, and wanted the shooting to occur in retaliation against a resident of the home and the family. Also, during the investigation, an additional man Jonathon Sotres-De La O was found to be an associate of the shooting party and to have also illegally possessed a firearm on a different occasion.
Vite was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 72 months’ imprisonment. He was ordered to pay $38,863.42 in restitution to victims and the insurance company. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Joel Perea-Duenas was sentenced to 54 months imprisonment on November 19, 2021. Alexander Laurel-Olea was sentenced to 24 months imprisonment on November 18, 2021. Esai Lopez was sentenced to 30 months imprisonment on April 7, 2022. Jonathon Sotres-De La O was sentenced to 46 months imprisonment on November 4, 2021.
Vite is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4071. Follow us on Twitter @USAO_NDIA.
Sacramento Man Sentenced to 30 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
SACRAMENTO, Calif. — Nathaniel John Cummings, 42, of Sacramento, was sentenced today to 30 years in prison to be followed by 25 years supervised release for sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cummings sexually exploited a very young child. He also used Instagram messenger to receive visual depictions of a different child engaged in sexually explicit conduct. On July 29, 2020, a law enforcement team executed a search warrant at Cummings’s residence and located multiple images of child sexual abuse on his cellphone and computer.
When Cummings was 22 years old, he was convicted of engaging in unlawful sexual intercourse with a 14-year-old victim in Alameda County and received a sentence of one year in jail and five years of probation. While on probation for that sexual abuse of a minor crime, at age 25, Cummings was convicted of oral copulation, sexual penetration, and sexual intercourse with a 16-year-old victim.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Christina M. McCall 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 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.
Russian Military and Intelligence Agencies Procurement Network Indicted in Brooklyn Federal CourtRead the Press Release
Publicly filed court documents, including a 16-count indictment unsealed today in Brooklyn, charge five Russian nationals – including a suspected Federal Security Service (FSB) officer – and two U.S. nationals with conspiracy and other charges related to a global procurement and money laundering scheme on behalf of the Russian government in which the defendants allegedly conspired to obtain military-grade and dual-use technologies from U.S. companies for Russia’s defense sector, and to smuggle sniper rifle ammunition, in violation of new U.S. sanctions imposed earlier this year.
Yevgeniy Grinin, 44, of Moscow; Aleksey Ippolitov, 57, of Moscow; Boris Livshits, 52, of St. Petersburg; Svetlana Skvortsova, 41, of Moscow; Vadim Konoshchenok, 48, of St. Petersburg; Alexey Brayman, 35, of New Hampshire; and Vadim Yermolenko, 41, of New Jersey, are charged with conspiracy to defraud the United States as to the enforcement of export controls and economic sanctions; conspiracy to violate the Export Control Reform Act (ECRA); smuggling; and failure to comply with the Automated Export System relating to the transportation of electronics.
According to the indictment, the defendants unlawfully purchased and exported highly sensitive and heavily regulated electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications.
“The Department of Justice and our international partners will not tolerate criminal schemes to bolster the Russian military’s war efforts,” said Attorney General Merrick B. Garland. “With three of the defendants now in custody, we have disrupted the procurement network allegedly used by the defendants and Russian intelligence services to smuggle sniper rifle ammunition and sensitive electronic components into Russia. The Justice Department will continue to vigorously enforce our economic sanctions and export controls against those who enable the Russian government to continue its unjust war in Ukraine. I am grateful for the tireless efforts of the Department’s Task Force KleptoCapture, the National Security Division, the Office of International Affairs, the U.S. Attorney’s Office for the Eastern District of New York, and the FBI on this case.”
“Today the Department of Justice proves once again that we will relentlessly pursue those who support the Russian war machine by evading sanctions and export controls,” said Deputy Attorney General Lisa O. Monaco. “By exposing the defendants’ smuggling of ammunition and transfer of sensitive U.S. technologies – from quantum computing to hypersonic weapons development – the Department of Justice is holding accountable those who are fueling Russia’s unlawful and unprovoked aggression in Ukraine.”
“The FBI’s work, with our partners, to identify and stop illegal transfers of weapons and dual use-technology to Russia shows that we can and will reach around the world to keep Americans safe,” said FBI Director Christopher Wray. “The industries that these illegal transfers could support – quantum computing, hypersonic weapons – pose great danger in the hands of our adversaries. The FBI will remain relentless against illegal transfers that support such industries in hostile nations, while we also continue to focus on protecting strategic technology innovation here at home.”
“This indictment demonstrates the relentless efforts of the FBI and its partners to thwart Russian procurement actors in their attempts to reconstitute the Russian military’s weapons cache,” said FBI Deputy Director Paul Abbate. “The FBI, along with its U.S. and international partners, remains committed to disrupting and dismantling these networks, regardless of where they are.”
As alleged, the defendants were affiliated with Serniya Engineering and Sertal LLC, Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true identity(s) of Russian end users of U.S.-origin equipment.
Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several companies used in the scheme, as well as multiple individuals affiliated with the network, including defendant Yevgeniy Grinin, calling them “instrumental to the Russian Federation’s war machine.”
“As alleged, the defendants perpetrated a sophisticated procurement network that illegally obtained sensitive U.S. technology to facilitate the Russian war machine,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Our office will not rest in its vigorous pursuit of those who unlawfully procure U.S. technology to be used in furtherance of Russia’s brutal, continued attacks on democracy.”
“From the outset of the Task Force, robust enforcement of U.S. export controls and restrictions on the transfer of sensitive technology has been a key strategic priority,” said Task Force KleptoCapture Director Andrew C. Adams. “Today’s indictment demonstrates the reach of those controls and the United States’ commitment to choking off access to military grade equipment by the Russian regime. We will continue the steady pace of seizures, indictments and arrests, while the Kremlin shopping for spare parts in North Korea.”
As alleged in the indictment, Ippolitov received requests from Russian end users and relayed them to Grinin and Skvortsova, who were both employees of Sertal. Grinin and Skvortsova secured funding and shipping routes for the transactions, and tasked Livshits with procuring the items from U.S. companies. Livshits, a former resident of Brooklyn, New York, opened and controlled a variety of shell companies and associated bank accounts in the New York City area, which he used to route shipments and layer financial transactions in furtherance of the scheme, including in coordination with Konoshchenok, Brayman and Yermolenko.
Konoshchenok – who is suspected to be an FSB officer – would ship or physically smuggle U.S.-origin items from Estonia to Russia, including dual-use electronics, military-grade tactical ammunition and other export-controlled items. As alleged in the indictment, on Oct. 27, 2022, Konoshchenok was stopped at the Estonian border with 35 different types of semiconductors and other electronic components ordered by Livshits, as well as thousands of U.S.-made 6.5mm bullets, which are used in military sniper rifles. On Nov. 24, 2022, Konoshchenok was again stopped attempting to cross into Russia with approximately 20 cases containing thousands of U.S.-origin bullets, including tactical rounds and .338 military sniper rounds. Konoshchenok discussed “fabricating” business records with Livshits to conceal the ammunition shipments, on one occasion describing them as “auto parts.” Incident to Konoshchenok’s arrest, Estonian authorities searched a warehouse held in the name of Konoshchenok’s son and recovered approximately 375 pounds worth of ammunition.
Based in the United States, Brayman and Yermolenko would fabricate shipping documents and invoices, repackaging and reshipping items to intermediate destinations around the world — including to Konoshchenok in Estonia — before eventually arriving in Russia. Yermolenko and Brayman also helped Livshits set up and manage dozens of shell companies and corresponding bank accounts throughout the U.S. that were used in the scheme.
Livshits also interfaced directly with U.S. companies – often using the alias “David Wetzky” – and made materially false statements about how the items would be used and the ultimate end user. He also fabricated shipping documents and invoices and repackaged and reshipped items to intermediate destinations around the world before eventually arriving in Russia.
“The powerful export controls we’ve put in place have been successful in isolating Russia from the global economy,” stated Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “Today’s actions demonstrate our vigilance in uncovering Russian tactics to illicitly acquire the items they need to keep their brutal war going.”
Grinin, Ippolitov, Livshits and Skvortsova are further charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA); wire fraud; and money laundering. Grinin, Ippolitov, Livshits, Skvortsova, Brayman and Yermolenko are further charged with bank fraud conspiracy, wire fraud conspiracy and money laundering conspiracy. Today, Brayman surrendered to the FBI and Yermolenko was arrested in New Jersey. Brayman will be arraigned in New Hampshire and Yermolenko will be arraigned in the Eastern District of New York. Konoshchenok was arrested separately by Estonian authorities on Dec. 6 at the request of the United States and is now pending extradition. The remaining defendants are at large.
If convicted of bank fraud or bank fraud conspiracy, the defendants face a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
Assistant U.S. Attorneys Artie McConnell and Craig R. Heeren for the Eastern District of New York and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Litigation Analyst Ben Richmond. The Justice Department’s Office of International Affairs provided valuable assistance. The United States wishes to thank the Estonian Internal Security Service and the Prosecutor's Office for their support.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Roseville Man Pleads Guilty to International Drug Trafficking Conspiracy in the United States and CanadaRead the Press Release
SACRAMENTO, Calif. — Amandeep Multani, 34, of Roseville, pleaded guilty today to conspiracy to distribute and to possess with intent to distribute cocaine, heroin, opium, and ketamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Multani and his co-conspirators, including co-defendants Parampreet Singh and Ranvir Singh, coordinated cocaine, heroin, opium, and ketamine deals in Canada. They coordinated these deals from California over encrypted cellphone applications. In total, between October 2020 and April 2021, they coordinated sales to undercover officers of approximately 10 kilograms of cocaine, 1.5 kilograms of opium, 2 kilograms of ketamine, and multiple samples of heroin, for a total of $637,600 in Canadian dollars and $75,190 in U.S. dollars, in deals in Canada and Sacramento. In addition, Multani and his co-defendants offered to sell up to 100 kilograms of cocaine, up to 25 kilograms of heroin, up to 100 kilograms of opium, and up to 200 kilograms of ketamine on numerous occasions between September 2020 and April 2021.
As part of his plea agreement, Multani has agreed to cooperate fully with the United States.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the York Regional Police in Canada, the Royal Canadian Mounted Police, and the Placer County Special Investigations Unit. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Parampreet Singh and Ranvir Singh have pleaded not guilty. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Multani is scheduled to be sentenced by U.S. District Judge John A. Mendez on March 14, 2023. Multani faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Repeat Offender Sentenced to 45 Months in Federal Prison for Felon in Possession of FirearmsRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Jaquez Williams, age 28, from Wilmington was sentenced today to 45 months in prison for two counts of felon in possession of a firearm. U.S. District Judge Maryellen Noreika pronounced the sentence.
According to court documents, on September 23, 2020, Mr. Williams, a convicted felon, possessed a loaded semiautomatic pistol when the car he was driving was stopped for a traffic violation. While on bail for the September 23 offense, the defendant was found in possession of another loaded semiautomatic pistol during another traffic stop. The defendant clearly has a penchant for illegal use and possession of firearms, as he had two prior convictions relating to his illegal possession of a firearm.
U.S. Attorney Weiss stated, “Mr. Williams’ current offense and his history of illegally possessing firearms represent a clear and present danger to our community. My office and our law enforcement partners will continue to devote unlimited resources to help stem the tide of gun violence. This sentence should serve as a warning to other repeat offenders who unlawfully possess firearms.”
“This sentencing is yet another example of the stiff consequences faced by those who carry firearms illegally in Wilmington,” said Wilmington Police Chief Robert J. Tracy. “We appreciate the continued partnership of the United States Attorney’s Office, working with our police officers and investigators to ensure strong prosecution of gun charges.”
The case was investigated by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Edmond Falgowski.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 21-cr-67.
Readout of U.S. Attorney General Merrick B. Garland’s Meeting with Vietnamese Prosecutor General Le Minh TriRead the Press Release
U.S. Attorney General Merrick B. Garland met yesterday in Washington with Prosecutor General Le Minh Tri of the Supreme People’s Procuracy of the Socialist Republic of Vietnam.
In the meeting, Attorney General Garland and Criminal Division Assistant Attorney General Kenneth A. Polite, Jr. welcomed Prosecutor General Le on his first official visit to the United States, and thanked Prosecutor General Le for Vietnam’s assistance in law enforcement matters.
Attorney General Garland and Assistant Attorney General Polite discussed with Prosecutor General Le the importance of both countries’ efforts to combat transnational organized crime, cyber and cyber-enabled crimes, public corruption, and human trafficking. The leaders also committed to further strengthening the bilateral law enforcement partnership, including on mutual legal assistance.
Left to Right: Deputy Prosecutor General Nguyen Hai Tram, U.S. Attorney General Merrick B. Garland, Prosecutor General Le Minh Tri, and Vietnamese Ambassador to the United States Nguyen Quoc DzungReadout of Deputy Attorney General Lisa O. Monaco’s Trip to OklahomaRead the Press Release
Yesterday, Deputy Attorney General (Deputy AG) Lisa O. Monaco visited Oklahoma to highlight the Justice Department’s work to increase public safety and reduce violent crime.
The Deputy AG provided the keynote address at the opening session of the 2022 National Public Safety Partnership (PSP) Violent Crime Reduction Summit. PSP provides a framework for cities to benefit from federal resources and programming to target public safety challenges, with 23 active sites across the nation. Yesterday, for the first time since the COVID-19 pandemic, the Summit brought together, in-person, approximately 500 federal, state and local law enforcement leaders to share strategies and best practices for keeping communities safe.
In her remarks the Deputy AG highlighted how, across the country, PSP sites are implementing new strategies, engaging with communities, opening lines of communication and fostering partnerships. In the Deputy AG’s words, “the presence of so many law enforcement and community leaders from across the nation speaks volumes about the commitment we all share to uniting our experience and our expertise to join forces and keep our communities safe.”
The Deputy AG stressed the need for significant additional resources to reduce violent crime, and described the Justice Department’s fight for resources through the President’s budget for 2023, which includes a request for almost $11.2 billion for the Department to tackle violent crime.
The Deputy AG also announced a new policy to increase use of the National Integrated Ballistics Information Network (NIBIN) — a unique resource of the Bureau of Alcohol, Tobacco, Firearms and Explosives that provides timely intelligence from ballistics evidence. Moving forward, all firearms and fired cartridge casings recovered in connection with every Department criminal investigation, including Department-funded task force operations, must be swiftly entered into NIBIN and analyzed.
On her trip, the Deputy AG visited the U.S. Attorney’s Offices for the Northern and Eastern Districts of Oklahoma, where she met U.S. Attorneys Clinton Johnson and Christopher Wilson, as well as their leadership teams, prosecutors and professional staff to thank them for their hard work and commitment to justice. She also met with the heads of federal law enforcement partners, as well as the Attorneys General of the Muscogee (Creek) Nation and the Cherokee Nation and discussed collaborative efforts to address violent crime and public safety challenges in the wake of McGirt v. Oklahoma.
Group photo from the PSP Summit Deputy Attorney General Monaco meeting with Tribal Attorneys General and U.S. Attorney Clinton JohnsonRapid City Man Sentenced for Voluntary ManslaughterRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Voluntary Manslaughter. The sentencing took place on December 12, 2022.
Perry Joseph Fogg, age 24, was sentenced to eight years in federal prison, followed by three years of supervised release, $1,185 restitution, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Fogg was indicted by a federal grand jury in December of 2021. He pleaded guilty on September 1, 2022.
On July 19, 2021, in Mellette County, within the Rosebud Sioux Indian Reservation, upon sudden quarrel or heat of passion, Fogg unlawfully killed the victim by striking the victim with a pickup.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the FBI. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Fogg was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced a federal grand jury has indicted a Rapid City, South Dakota, man for Failure to Register as a Sex Offender.
Bradley Makes Room For Them, age 38, was indicted in June of 2022. He appeared before U.S. Magistrate Judge Mark Moreno on December 12, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Makes Room For Them was convicted of Aggravated Sexual Abuse in September of 2003. As a result of this conviction, he is required to register as a sex offender. It is alleged that between March 16, 2022, and April 25, 2022, Makes Room For Them, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, failed to properly register and update his registration.
The charge is merely an accusation and Makes Room For Them is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Makes Room For Them was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Romanian Fugitive and Six Nationals Charged with Unlawfully Entering the United StatesRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Clementina Rostas, 21, Argentina Razmies, 22, Ion Razmies, 33, Alexandru Panait, 34, Gheorghe Varga, 32, Hercule Muntean, 35, and Florian Muntean, 20, all of Romania, appeared before Magistrate Judge Ruth Miller for their initial appearance hearing after being apprehended by U.S. Border Patrol agent at the Fredericks Marine Terminal in St. Thomas, VI, and charged with illegal entry into the United States.
According to court documents, on December 7, 2022, U.S. Border Patrol agents received a report from the Virgin Islands Police Department that a group of seven individuals was boarding a passenger ferry in Cruz Bay, St. John, headed to St. Thomas. Border Patrol agents later determined that the individuals had illegally entered the United States Virgin Islands after confirming their identities through photographs. Upon arrival at the Fredericks Terminal, the individuals were taken into custody by Border Patrol agents and charged with unlawful entry. Agents further discovered that Florian Muntean is wanted in Spain based on an outstanding warrant for murder.
This case is being investigated by the United States Border Patrol, Homeland Security Investigations and Customs and Border Protection and is being prosecuted by Assistant United States Attorney Natasha Baker.
PharmScript of KS LLC agrees to pay $3 million to resolve allegations that it improperly dispensed controlled substances at long-term care facilitiesRead the Press Release
KANSAS CITY, KAN. - PharmScript of KS, LLC, a long-term care pharmacy in Lenexa, Kansas, has agreed to pay $3 million to resolve allegations that it violated federal law by dispensing controlled substances to residents in nursing and long-term care facilities without valid prescriptions and that the company was wrongfully reimbursed by the Medicare and Medicaid programs.
PharmScript of KS, LLC is a wholly owned subsidiary of PharmScript Holdco, LLC and provides medication and pharmaceutical services to patients in skilled nursing facilities and to residents in assisted living facilities in Kansas and Missouri. PharmScript of KS, LLC self-reported violations of the Controlled Substances Act to the Drug Enforcement Administration, which conducted its own investigation.
“This resolution sends a message that there are rules to be followed when dispensing controlled substances,” said Duston Slinkard, United States Attorney for the District of Kansas. “This office makes it a priority to protect patients from being supplied drugs without valid prescriptions and to ensure that the limited federal program resources are spent according to federal law.”
Special Agent in Charge Michael A. Davis heads the Drug Enforcement Administration division that leads DEA investigations in Kansas and Missouri.“Because opioids are highly addictive, doctors and pharmacies have a duty to ensure they are prescribing controlled medications according to law to protect their patients’ health and safety,” said Davis. “PharmScript’s dispensing practices were so egregious, it warranted a significant civil penalty.”
“Improperly dispensing opioids undermines critical measures to address the opioid crisis and puts vulnerable patients at serious risk of overdose and harm,” said Curt L. Muller, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, HHS-OIG will continue to ensure that bad actors are held accountable for disregarding the safety and well-being of patients.”
In nearly all circumstances, Schedule II controlled substances require a written prescription by a physician, and refills are not permitted by law. The Controlled Substances Act allows pharmacists to dispense Schedule II controlled substances, such as opioid pain medications, without a written prescription only in true emergency situations. When allowed for emergencies, it is only for the quantity of drugs necessary to treat the patient during the emergency period. Emergency prescriptions must promptly be reduced to writing and signed by an authorizing physician within seven days of issuance. Failure to meet these requirements results in an illegal dispensing of controlled substances without a valid prescription.
The federal government alleged that between October 1, 2019, through March 31, 2021, PharmScript of KS, LLC dispensed Schedule II controlled substances for purported emergencies when quantities of the controlled substances dispensed were greater than what was adequate for the emergency period and that PharmScript of KS, LLC failed to obtain written prescriptions within seven days after a verbal authorization. The government also alleged that other controlled substances were dispensed without a written prescription and when no verbal authorization was received from a physician.
The government also resolved claims that PharmScript of KS, LLC was improperly paid by the Medicare and Medicaid programs for dispensing controlled substances without valid prescriptions.
This case was investigated by the Drug Enforcement Administration’s Diversion Control Division, Kansas City Field Office, the Department of Health and Human Services – Office of the Inspector General, and the United States Attorney’s Office for the District of Kansas.
The case was handled by Jon Fleenor, Assistant United States Attorney and Affirmative Civil Enforcement Coordinator.
For further information please contact the U.S. Attorney’s Public Affairs office.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Oneida County Man Pleads Guilty to Trading Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Chad Srogi, age 39, of Vernon, New York pled guilty today to distributing, transporting, and possessing child pornography. The announcement was made by United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and New York State Police Acting Superintendent Steven A. Nigrelli.
During the change of plea hearing, Srogi admitted that he distributed and transported child pornography on multiple social media platforms in 2018 and possessed more than a hundred child pornography files in October 2019. He also admitted that, in 2007, he was convicted in Florida of Promoting the Sexual Performance of a Child and Possessing Material Depicting the Sexual Performance of a Child.
The possession of child pornography charge carries a mandatory minimum sentence of 10 years and a maximum of 20 years. The distribution and transportation of child pornography charges carry a mandatory minimum sentence of 15 years and a maximum sentence of 40 years. Srogi also faces a fine of up to $250,000, a term of supervised release of at least five years and up to life, forfeiture to the United States of property used to commit his offenses, restitution to identified victims, and will have register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Sentencing is scheduled for April 19, 2023, in Syracuse before United States District Judge Glenn T. Suddaby.
This case is being investigated by U.S. Homeland Security Investigations (HSI), and the New York State Police (Troop D Bureau of Criminal Investigation (BCI), and the Computer Crimes Unit), and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood.
Project Safe Childhood is 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 http://www.justice.gov/psc/.
Ohio man admits to soliciting child pornography from 9-year-old Wetzel County victimRead the Press Release
WHEELING, WEST VIRGINIA – Steven Wolford, of Cadiz, Ohio, has admitted to a child pornography charge, United States Attorney William Ihlenfeld announced.
Wolford, 25, pleaded guilty today to one count of “Solicitation of Child Pornography.” Wolford admitted to reaching out to a 9-year-old from Wetzel County and requesting inappropriate pictures and live-stream videos from the victim. The crime took place in July and August 2021.
Wolford faces at least five and up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Wetzel County Sheriff’s Office investigated. The Moundsville Police Department, the Harrison County, Ohio, Sheriff’s Office, and the Cadiz, Ohio, Police Department assisted.
U.S. Magistrate Judge James P. Mazzone presided.
North Carolina Man Pleads Guilty to Being A Felon in Possession of A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Michael Alan Jones, 24, of Charlotte, North Carolina, pleaded guilty before U.S. District Judge David G. Larimer to being a felon in possession of a firearm and ammunition, which carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that in February 2019, Jones was convicted in Alamance County, North Carolina, of two felony crimes, and as a result is legally prohibited from possessing firearms and ammunition. On March 19, 2022, in the Town of Leroy, in Genesee County, Jones possessed a semiautomatic rifle and ammunition in a vehicle in the vicinity of Route 33 and Griswold Road and School Road.
The plea is the result of an investigation by the Genesee County Sheriff’s Office, under the direction of Sheriff William Sheron, Jr., and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury.
Sentencing is scheduled for May 16, 2023, at 2:30 p.m. before Judge Larimer.
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New Orleans Man Sentenced on Federal Firearms ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant RICHARD JONES, of New Orleans, was sentenced on December 8, 2022 by U.S. District Court Chief Judge Nannette Jolivette Brown to 40 months imprisonment, 3 years supervised release, and a mandatory $100 special assessment fee.
Count One of the indictment charged JONES with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Investigators working on the scene of the second-line parade on November 21, 2021, observed a large rifle protruding from JONES’s waistband. Officers attempted to conduct an investigatory stop of JONES when he fled. The officers eventually detained JONES and removed the fully loaded rifle from underneath his shirt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department. The case was prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney’s Office.
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