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21 November 2022
Pennsylvania man who received more than $1 million via mail through government imposter scheme sentenced to prisonRead the Press Release
COLUMBUS, Ohio – A Bristol, Pennsylvania, man was sentenced in U.S. District Court today to 36 months in prison for multiple counts of mail fraud and mail fraud conspiracy. He was also ordered to pay more than $1.1 million in restitution.
Sagarkumar Suresh Patel, 29, conspired with others to cause victims to mail bulk amounts of cash by pretending to be federal government officials.
According to court documents, co-conspirators would call victims and identify themselves as law enforcement officers or attorneys working with the federal government. They would threaten victims by falsely informing them they had active warrants for their arrest, and that their bank accounts and social security numbers had been compromised.
Co-conspirators would tell the victims that to avoid losing money from their bank accounts they needed to withdraw large sums of cash from their bank.
The victims were told to insert the cash between the pages of several reading magazines and then place each magazine in a bubble-wrapped envelope before placing the wrapped magazines in a cardboard box. Victims mailed packages to Walgreens and other mail depositories to aliases used by Patel.
In June 2021, Dublin police officers intercepted a package mailed to Patel at the Walgreens on Hospital Drive that contained $22,000 in cash inserted into magazines. When officers searched Patel’s vehicle, they discovered another magazine package containing $25,000 in cash, $30,000 in a white plastic bag that was wrapped in bubble wrap, a plastic Donatos pizza bag that contained $31,500 and a Southern First bank bag that contained $22,500.
“I listened to three of the victims who participated in today’s sentencing hearing, said U.S. Attorney Kenneth L. Parker. “As each of them made clear, the defendant’s illegal actions nearly wiped out all of their life savings. The defendant’s actions caused so much pain and despair to numerous people. A sentence of imprisonment was definitely warranted in this case. This office will continue to work with our federal, state and local law enforcement partners to aggressively pursue and prosecute those who engage in this type of criminal activity.”
Patel was charged federally in June 2021 and pleaded guilty in November 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dublin Police Chief Justin Paez announced the sentence imposed today by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorney Kenneth F. Affeldt is representing the United States in this case.
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North Texas Couple Charged with $684,000 Paycheck Protection Program FraudRead the Press Release
A North Texas couple has been charged with defrauding the Paycheck Protection Program out of more than $684,000, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Patrick Kasong Muyej, 48, and Chisanga Mable Scot, 43, were indicted on one count each of conspiracy to commit conspiracy to commit wire fraud. Mr. Muyej was also charged with eight counts of money laundering and one count of theft of government funds while Ms. Scott was charged with one count of false use of a passport.
According to the indictment, the pair allegedly submitted fraudulent applications for $1.85 million in Paycheck Protection Program loans on behalf of businesses that did not qualify for the loans.
In application paperwork, they allegedly falsified the business’s number of employees – listing individuals who they did not employ – and manufacturing the businesses’ monthly payroll.
They allegedly used the same bank statement in support of multiple loan applications but doctored the name of the account holder on each one to match the name of the PPP loan applicant.
In total, they received two PPP loans totaling $684,158.33. Mr. Muyej is also alleged to have laundered that money.
In addition, Mr. Muyej also took advantage of Covid relief by fraudulently obtaining unemployment insurance benefits from the State of Nevada in August 2020.
An indictment is merely an allegation of criminal conduct, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, Mr. Muyej and Ms. Scott face up to 20 years in federal prison on the count of conspiracy to commit wire fraud. Mr. Muyej also faces up to 20 years in prison on each count of money laundering and up to ten years for the count of theft of government funds. Ms. Scott faces up to 10 additional years on the count of false use of a passport.
The Federal Bureau of Investigation’s Dallas Field Office and the State Department’s Diplomatic Security Service conducted the investigation. Assistant U.S. Attorney Marty Basu is prosecuting the case.
The Paycheck Protection Program (PPP) was authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses to cover payroll, rent, and certain other expenses.
New York Man Sentenced by Federal Court in Rhode Island Fraud Scheme Targeting SeniorsRead the Press Release
PROVIDENCE – Jason Hatcher, 40, of New York, NY, was sentenced today to nearly three years in federal prison for his participation in a conspiracy that defrauded more than a dozen Rhode Island seniors who unknowingly fell victim to a so-called “grandparent scam,” announced United States Attorney Zachary A. Cunha.
Fourteen known victims, who ranged from seventy-nine to ninety-four years of age, were contacted by telephone by callers impersonating family members or attorneys. These callers falsely told the victims that a loved one, generally a grandchild, had been arrested after being involved in a motor vehicle accident, and needed cash bail. The victims were directed to gather cash for these fake bail payments and told to provide the money to a courier who would be sent to their home. Different members of the conspiracy played various roles to carry out the scam; Hatcher travelled around Rhode Island and met face-to-face with many of the victims to collect the cash payments.
Rhode Island victims were scammed out of approximately $394,033.
Hatcher pleaded guilty on July 5, 2020, to conspiracy to commit wire fraud and aggravated identity theft. He was sentenced today by U.S. District Court Judge William E. Smith to thirty-three months in federal prison to be followed by three years of federal supervised release. Hatcher was ordered to pay restitution in the amount of $394,033.
Two co-defendants in this matter, Bryan Valdez-Espinosa, 22, and Diego A. Alarcon, 22, of Union City, NJ, pleaded guilty in July to conspiracy to commit wire fraud and are awaiting sentencing in U.S. District Court in Providence.
The cases are being prosecuted by Assistant United States Attorneys G. Michael Seaman, Christine D. Lowell, and Lee H. Vilker.
The matter was investigated by Homeland Security Investigations. United States Attorney Cunha thanks the Warwick, Cranston, East Providence, Johnston, Hopkinton, Cumberland, Coventry, North Kingstown, Barrington, and Smithfield Police Departments for their assistance with the investigation.
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New Jersey Man Pleads Guilty to Trafficking CocaineRead the Press Release
ALBANY, NEW YORK – Robert “Bobby” Ingrao, age 75, of Lodi, New Jersey, pled guilty today to conspiring to distribute cocaine, and to possessing 9 kilograms of cocaine and intending to deliver it to co-conspirators in Schenectady, New York.
The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
Ingrao admitted that on March 31, 2021, he and co-conspirators drove to Schenectady in two cars in order to take possession of a third vehicle, a blue Jeep Grand Cherokee. The blue Jeep contained a hidden compartment, or “trap,” in its trunk area.
One of Ingrao’s co-conspirators then drove the blue Jeep from Schenectady to the New York City/northern New Jersey area. At some point between the evening of March 31 and the morning of April 2, Ingrao’s co-conspirators placed 9 kilograms of cocaine in the blue Jeep’s hidden compartment.
On the morning of April 2, 2021, Ingrao drove the blue Jeep north from the New York City/northern New Jersey area, knowing that its hidden compartment contained 9 kilograms of cocaine, and intending to deliver that cocaine to other co-conspirators in Schenectady.
New York State Police conducted a traffic stop of Ingrao in Greene County, as he was driving the blue Jeep alone, north on Interstate 87. Troopers then discovered 9 kilograms of cocaine in the blue Jeep’s hidden compartment.
Sentencing is scheduled for March 22, 2023. Ingrao faces at least 10 years and up to life in prison, as well as at least 5 years of post-imprisonment supervised release. 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.
Three defendants still face charges in this case:
- Richard “Richie” Sinde, age 57, of Fort Lee, New Jersey;
- Jeffrey C. Civitello Sr., age 51, of Schenectady; and
- Jeffrey C. Civitello Jr., age 23 of Schenectady.
They are scheduled to go on trial on April 17, 2023, before United States District Judge Mae A. D’Agostino. As to these remaining defendants, the charges in the indictment are merely accusations. These defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, and the New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Missouri Man Pleads Guilty to Using Violence Against Witnesses with Knowledge of the Disappearance, Murder of a Joplin WomanRead the Press Release
TULSA, Okla. – Another defendant has pleaded guilty to using physical force against two individuals to stop them from communicating with law enforcement about the kidnapping and murder of a Joplin, Missouri, woman, announced U.S. Attorney Clint Johnson of the Northern District of Oklahoma.
Lane Ryan Bronson, 29, pleaded guilty to tampering with a witness, victim, and informant by using and threatening physical force. If a federal judge approves the stipulated sentence, Bronson will serve 19 years in federal prison. The judge will make the final determination at a sentencing hearing to be held at a later date.
Bronson admitted that on Aug. 13, 2020, he directed Chloe Stith, 22, to lure the two victims to her car where she restrained them and blindfolded them with duct tape. Stith and Bronson then drove the victims to a secluded location. They uncovered the victims’ eyes, and Bronson told one victim that he heard she had been talking about Jolene Walker Campbell’s disappearance. Bronson then assaulted the male victim while he was still restrained and defenseless.
Bronson’s brother Tre Ackerson, 28, is alleged to have kidnapped Walker Campbell in Joplin, traveled into Oklahoma, and murdered the woman between July 4 and July 5, 2020. Ackerson and Breanna Sloan, 23, then allegedly left her body in a rural Mayes County, Oklahoma, field. Sloan drove the vehicle and initially lured the victim by offering her a ride. On Nov. 17, 2022, Sloan pleaded guilty to aiding and abetting Ackerson to kidnap the victim, ultimately leading to her murder. Ackerson is set for trial in January and is innocent until proven guilty.
Bronson and Ackerson’s mother Kimberly Grissom, 48, and Jacob Scribner, 35, are also awaiting further proceedings in federal court. They are charged with conspiracy to retaliate against a witness, victim, and informant.
In total, seven defendants have now pleaded guilty to various charges from kidnapping to witness tampering.
The defendants are from the Joplin, Missouri, area.
The FBI led the investigation with the support of the Muscogee Nation Lighthorse Police Department, Mayes County Sheriff’s Office, and Joplin Police Department. Assistant U.S. Attorneys Justin G. Bish and George Jiang are prosecuting the case.
Milwaukee Man Sentenced to Federal Prison for Conspiracy to Defraud Medicare and Medicaid.Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 18, 2022, David Guerrero, Jr., was sentenced to 32 months’ imprisonment for conspiracy to defraud Medicare and Medicaid. Guerrero was also ordered to pay over $1 million in restitution to Medicare and Medicaid.
Court records in the case established the following. Guerrero worked at two Milwaukee-area medical clinics. Beginning in 2016, Guerrero engaged in a years’ long scheme to refer patients to pharmacies owned by his co-defendant, Alexander Shister, for expensive compound pain creams in exchange for illegal kickback payments. Although he is not a licensed medical provider, Guerrero used his access to private medical records at the clinics to identify patients who could plausibly need the pain creams and then ordered the pain creams from Shister’s pharmacies without the patients’ knowledge or consent. As a result of the scheme, Medicare and Medicaid paid Shister’s pharmacies about $1 million for medically unnecessary pain creams, including creams not even received by patients. Guerrero received over $100,000 in kickbacks from Shister for his role in the scheme. In addition, Guerrero engaged in another kickback scheme with a medical laboratory company, receiving over $150,000 in kickbacks in exchange for ordering urine drug tests that doctors at the clinics generally did not approve or review. In August 2022, Guerrero pleaded guilty to one count of conspiracy. Shister has previously plead guilty for his role. His sentencing is set for January 13, 2023.
At sentencing, United States District Judge J.P. Stadtmueller emphasized the seriousness of Guerrero’s crime, including the length of the fraudulent scheme and the significant losses suffered by the Medicare and Medicaid programs. Judge Stadtmueller further noted that Guerrero violated the trust of patients by using their private medical information without their knowledge or consent in order to implement the scheme and earn his kickback payments.
“Medicare and Medicaid only pay for medications and services that are actually needed to treat patients, not items ordered by individuals working in the medical field to line their own pockets,” said United States Attorney Haanstad. “Guerrero took advantage of his access to patients’ private medical information to order millions of dollars of unnecessary pain creams and drug tests, all so that he could earn hundreds of thousands of dollars of illegal kickbacks. This office is committed to working with our federal, state, and local partners to prevent kickback schemes and other frauds against the Medicare and Medicaid programs.”
“The billing of medically unnecessary medications and tests, as well as the payment of kickbacks to induce those referrals to a federal health care program is illegal,” said Mario M. Pinto, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General. “The OIG is committed to working with our law enforcement partners to hold those who seek to defraud federally funded health care programs accountable.”
"The defendant thought he could get away with criminal activity, accessing patient’s medical records without their knowledge and using that information for personal financial gain,” said FBI Special Agent in Charge Michael E. Hensle. “Working with his co-defendant, they conspired to receive significant payments of nearly $1 million from Medicare and Medicaid for unnecessary medical products. They also received over $150,000 in kickbacks from a medical lab. The FBI continues to stand with our local, state, and federal partners to identify, investigate, and bring these offenders to face justice.”
The Federal Bureau of Investigation and the Office of the Inspector General for the Department of Health and Human Services investigated the case. Assistant United States Attorneys Benjamin Proctor and Michael Carter handled the prosecution.
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Public Information Officer
Kenneth.Gales@usdoj.gov
(414) 297-1700
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Michigan City Man Sentenced to 87 Months in PrisonRead the Press Release
SOUTH BEND –Santana Miller, 37 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Miller was sentenced to 87 months in prison followed by 3 years of supervised release.
According to documents in the case, in April 2022, Miller possessed a handgun and a rifle while in Michigan City. At that time, he was on federal supervised release for a controlled substance conviction. Miller’s criminal history revealed he has four prior felony convictions and is therefore prohibited from possessing these firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Michigan City Police Department. The case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Methamphetamine Dealer Sentenced to over 21 Years in Federal PrisonRead the Press Release
INDIANAPOLIS – Bradley Gulledge, 42, of Indianapolis, was sentenced to a total of 262 months in federal prison after pleading guilty to possession with the intent to distribute methamphetamine in two federal cases
According to court documents, on August 29, 2018, Gulledge was arrested in Indianapolis when officers executed a search warrant at his residence and located over 280 grams of pure methamphetamine, digital scales, and multiple firearms. On September 10, 2018, after Gulledge posted bond in Marion County, Gulledge was located by law enforcement officers during the execution of another search warrant and found to be in possession of over 150 grams of pure methamphetamine and a firearm.
Gulledge has multiple prior felony convictions in Indiana, including convictions for dealing in cocaine or narcotic drugs and for unlawful firearm possession by a serious violent felon.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Superintendent Douglas Carter, Indiana State Police, R. Sean Fitzgerald, Special Agent in Charge of HSI Chicago, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The Indiana State Police, Homeland Security Investigations, and the FBI investigated the cases. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that the defendant be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
McNary Man Sentenced to 180 Months for Abusive Sexual Contact of a ChildRead the Press Release
PHOENIX, Ariz. – On November 7, 2022, Keenan Sherman Johnson, 26, of McNary, Arizona, was sentenced by United States District Judge Steven P. Logan to 180 months in prison, followed by lifetime supervised release. Johnson, an enrolled member of the White Mountain Apache Tribe, previously pleaded guilty to Abusive Sexual Contact of a Child.
In October 2018, the victim disclosed to her school counselor that Johnson had repeatedly sexually abused her several years before. When interviewed, Johnson admitted committing some of the acts, and apologized.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Jennifer E. LaGrange, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08128-PCT-SPL
RELEASE NUMBER: 2022-214_Johnson# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Mason County Man Pleads Guilty to Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Matthew Ryan Harper, 22, of Point Pleasant, pleaded guilty today to distribution of child pornography.
According to court documents and statements made in court, on June 9, 2021, Harper used the Snapchat social media platform to distribute a video of a prepubescent minor female engaged in sexually explicit conduct.
Harper admitted to distributing videos containing child pornography on three additional occasions in June 2021. Harper communicated with others on Snapchat and the Omegle online chat website about obtaining and trading child pornography during this time.
Harper further admitted to possessing 100 images and 38 videos of child pornography on January 25, 2022. Some of the images depicted toddlers.
Harper is scheduled to be sentenced on February 27, 2023, and faces a mandatory minimum of five years and up to 20 years in prison, at least years and up to a lifetime of supervised release, and a $250,000 fine. Harper must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Department of Homeland Security, Homeland Security Investigations (“HSI”).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Julie White is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-60.
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Maryland Livestock Brokers Sentenced to 30 Months’ Imprisonment for Exporting Dairy Cattle Through Fraudulent Health CertificatesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 17, 2022, Daniel Gutman, age 40, and Benjamin Gutman, age 40. both residents of Maryland, were each sentenced by United States District Court Judge Jennifer P. Wilson to 30 months in prison for a conspiracy to defraud and commit offenses against the United States. Collectively, they were ordered to pay $1,938,646.42 in fines and forfeiture.
According to United States Attorney Gerard M. Karam, Daniel Gutman and Benjamin Gutman are brothers who own and operate a livestock exporting business known as Gutman Brothers Dairy Cattle (“Gutman Brothers”), with operations in Maryland and Pennsylvania. Federal law requires cattle transported in interstate and foreign commerce to be tested for certain diseases prior to shipment, including Tuberculosis, Brucellosis, Leucosis, and Bovine Viral Diarrhea. The United States Department of Agriculture certifies that U.S. agricultural and food products shipped to international markets meet both U.S. and foreign requirements. When it comes to dairy cattle, this process relies upon the services of USDA-accredited veterinarians and the animal exporters to whom these veterinarians provide services.
The USDA’s investigation revealed that Daniel Gutman and Benjamin Gutman, with the assistance of Dr. Donald Yorlets, a USDA-accredited veterinarian, conspired to carry out a scheme to defraud foreign customers and the USDA. They did so by submitting non-authentic, bovine blood samples for the detection of disease to a USDA-accredited testing laboratory located in Harrisburg, Pennsylvania and by issuing false and fraudulent health certificates for the untested animals. In addition, Yorlets also falsely claimed in health certificates that cattle had tested negative for Bovine Tuberculosis when, in fact, the required caudal skin fold test had not been administered. Furthermore, Yorlets submitted these false and fraudulent health certificates to a USDA Veterinary Services Endorsement Office. The USDA’s endorsement of these health certificates permitted dairy cattle to be shipped in interstate and foreign commerce.
Yorlets signed international health certificates for Gutman Brothers dating back to 2014. With his assistance, Daniel and Benjamin Gutman shipped close to 20,000 head of dairy cattle to buyers in foreign countries, making millions of dollars in profits.
Previously, Daniel and Benjamin Gutman pleaded guilty conspiracy to defraud the United States in connection with the scheme. Likewise, on August 31, 2020, Yorlets pleaded guilty to a one-count criminal information charging him with conspiracy to defraud the United States. Yorlets currently awaits sentencing.
“Trade and commerce with our foreign and domestic partners require that all parties conduct themselves in a fair, legal, and transparent manner. Without trust in the system, there can be no trade. The Gutman brothers have broken this trust and damaged relations with our partners," said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office. “Thankfully, special agents with HSI and the USDA who focus on trade-based investigations were able to uncover this criminal conspiracy that impacted both the United States and our partner nations.”
“We appreciate the ongoing commitment and concerted efforts of our law enforcement partners at the U.S. Attorney’s Office and the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, as well as the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service, Investigative and Enforcement Services to investigate a long running scheme affecting the exportation of healthy animals from the U.S. and the illegitimate issuance of required health certificates based on fraudulent test results” said Special Agent-in-Charge Bethanne M. Dinkins of the U.S. Department of Agriculture (USDA), Office of Inspector General (OIG). “In order to ensure integrity in international commerce, USDA, OIG will continue to dedicate resources and prioritize work that disincentivizes those who seek to take short cuts in order to increase their own profit margins while at the same time demeaning the value and safety of American agricultural products.”
The case was investigated by the United States Department of Agriculture, Office of Inspector General and Homeland Security Investigations. Assistant U.S. Attorneys Ravi Romel Sharma and Philip J. Caraballo prosecuted the case. Now retired Assistant U.S. Attorney Kim Douglas Daniel previously worked on the case. Assistance was provided by the Department of Justice’s Office of International Affairs and the FBI Legal Attaché for Qatar and Kuwait.
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Kalamazoo Armed Drug Dealer Sentenced to over A Decade in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark Totten announced today that U.S. District Court Judge Robert J. Jonker sentenced Treshawn Kalian Bible, age 23, of Kalamazoo, Michigan, to 125 months in federal prison for illegally possessing a firearm as a convicted felon. This is the third time in four years that Bible has been convicted of being a felon in possession of a firearm, and today’s sentence was enhanced because Bible possessed his firearm in connection with drug trafficking. Judge Jonker observed that Bible is “enmeshed in gang culture” and “needs to stop.” Addressing the broader community, Judge Jonker said that a “message needs to go out: there really is a serious cost” to this type of behavior.
“Bible had an opportunity to reject a life of violence, but instead treated his federal firearms conviction as a badge of merit,” said U.S. Attorney Mark Totten. “He chose the path of guns and drugs, which led him directly back to prison, this time for more than a decade. Let today’s sentence serve as a reminder that my office has no tolerance for armed drug dealers.”
Bible is known to law enforcement as a member of the “Belmont Gangsters” in Kalamazoo, Michigan, and refers to himself as “FedBaby,” a moniker he had tattooed on his arm as an apparent homage to his 2019 federal gun conviction.
In late 2021, just weeks after Bible was released from prison in that case, police received reports of his involvement in multiple shootings in the Kalamazoo area—two resulting in injuries, and one resulting in death. During a traffic stop in December 2019, police found him with a stolen, loaded revolver, and two digital scales with drug residue on them. On Bible’s phone, police found drug dealing text messages, along with a video showing that he’d been illegally handling firearms since the day after he left from prison.
“The Kalamazoo Valley Enforcement Team is committed to stopping violent offenders from continuing to endanger the public through outreach, enforcement, and partnerships with city, county, state, and federal partners,” said Captain Rafael Diaz of the Kalamazoo Department of Public Safety. “The sentence imposed in this case represents the culmination of many hours of work and collaboration to keep the community safe.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kalamazoo Valley Enforcement Team, and the Kalamazoo Department of Public Safety, and prosecuted by Assistant U.S. Attorneys Patrick J. Castle and Davin Reust.
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Justice Department Seeks to Shut Down Houston Area Tax Return PreparerRead the Press Release
The United States filed a complaint in the U.S. District Court for the Southern District of Texas today seeking to bar a Houston area tax return preparer from preparing federal income tax returns for others.
The complaint alleges that Hollins Ray Alexander prepared over 5,200 federal income tax returns during 2020-2022 at a business called “Speedy Title & Tax Service” or “Tax Firm.” According to the complaint, in a number of these tax returns, the defendants significantly overstated the customers’ tax refunds by fabricating or inflating business losses and/or by falsely claiming education credits to which the customers were not entitled.
By repeatedly understating his customers’ tax liabilities, the complaint alleges, Alexander caused harm to the United States of more than an estimated $2.5 million in tax revenue from 2020 to 2022.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Secures Settlement with Firearm Manufacturer to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Aero Precision LLC, a Washington state firearm manufacturer. The settlement resolves the department’s determination that Aero Precision had a policy of unlawfully screening out certain non-U.S. citizen job candidates, including asylees and refugees, in violation of the Immigration and Nationality Act (INA). Under governing law, asylees and refugees have the same eligibility to work in jobs involving access to sensitive defense-related information as U.S. citizens and lawful permanent residents, and would have to pass the same background check as other employees if an employer requires one.
“Asylees and refugees in the United States are authorized to work and are entitled to fair access to employment opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that all employers, regardless of their industry, have a fair hiring process that does not subject workers to unlawful discrimination.”
The department’s investigation determined that from at least April 2020 until September 2020, Aero Precision routinely implemented a hiring policy that screened out eligible candidates who were not U.S. citizens or lawful permanent residents. Firearm manufacturers in the United States are subject to the International Traffic in Arms Regulations (ITAR), which regulate specific exports of defense articles and services. Absent State Department authorization, employers subject to these regulations must limit access to certain sensitive information to “U.S. persons,” which are defined as U.S. citizens, U.S. nationals, lawful permanent residents, asylees and refugees. The ITAR thus does not authorize or require employers to exclude asylees and refugees from consideration and hire only U.S. citizens and lawful permanent residents. By limiting hiring to just U.S. citizens and lawful permanent residents, Aero Precision placed unnecessary hiring restrictions on its workforce.
Under the settlement, Aero Precision must train staff on the requirements of the INA’s anti-discrimination provision, review its policies to ensure compliance with relevant law and be subject to departmental monitoring and reporting requirements.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid citizenship status discrimination on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email IER@usdoj.gov; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Justice Department Secures Agreement with University of California, Berkeley to Make Online Content Accessible to People with DisabilitiesRead the Press Release
The Justice Department announced today that it has filed a proposed consent decree in federal court to resolve allegations that the Regents of the University of California on behalf of the University of California, Berkeley (collectively, UC Berkeley) violated Title II of the Americans with Disabilities Act (ADA) because much of UC Berkeley’s free online content is inaccessible to individuals with hearing, vision, and manual disabilities. The proposed consent decree was filed together with a complaint setting forth the allegations of discrimination.
“By entering into this consent decree, UC Berkeley will make its content accessible to the many people with disabilities who want to participate in and access the same online educational opportunities provided to people without disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This decree will provide people with disabilities access to the numerous free online courses, conferences, lectures, performances and other programming offered by UC Berkeley and its faculty, providing lifelong learning opportunities to millions of people.”
UC Berkeley makes conferences, lectures, sporting events, graduation ceremonies and other university events available to the public on its websites and on other online platforms, including its YouTube and Apple Podcasts channels. It also makes courses available on its UC BerkeleyX platform. Much of this online content is not accessible to people with disabilities because it lacks captions and transcripts for individuals who are deaf and alternative text describing visual images for individuals who are blind. It is also formatted in a way that does not allow individuals with disabilities to access the content using screen readers or other assistive technology.
Under the three-and-a-half-year long consent decree, which requires court approval, UC Berkeley will make all future and the vast majority of its existing online content accessible to people with disabilities. This includes BerkeleyX courses, university websites and video and podcast content on its YouTube, Apple Podcasts and other third-party platforms. UC Berkeley will also revise its policies, train relevant personnel, designate a web accessibility coordinator, conduct accessibility testing of its online content and hire an independent auditor to evaluate the accessibility of its content.
“Through this consent decree, the Department of Justice demonstrates its commitment to ensuring compliance with the ADA by providing individuals with disabilities a full and equal opportunity to participate in and enjoy the benefits of UC Berkeley’s services, programs and activities in equal measure with people without disabilities,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California.
For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Secures Agreement with University of California, Berkeley to Make Online Content Accessible to People with DisabilitiesRead the Press Release
SAN FRANCISCO –The Justice Department announced today that it has filed a proposed consent decree in federal court to resolve allegations that the Regents of the University of California on behalf of the University of California, Berkeley (collectively, UC Berkeley) violated Title II of the Americans with Disabilities Act (ADA) because much of UC Berkeley’s free online content is inaccessible to individuals with hearing, vision, and manual disabilities. The proposed consent decree was filed together with a complaint setting forth the allegations of discrimination.
“By entering into this consent decree, UC Berkeley will make its content accessible to the many people with disabilities who want to participate in and access the same online educational opportunities provided to people without disabilities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This decree will provide people with disabilities access to the numerous free online courses, conferences, lectures, performances, and other programming offered by UC Berkeley and its faculty, providing lifelong learning opportunities to millions of people.”
“Through this consent decree, the Department of Justice demonstrates its commitment to ensuring compliance with the ADA by providing individuals with disabilities a full and equal opportunity to participate in and enjoy the benefits of UC Berkeley’s services, programs, and activities in equal measure with people without disabilities,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California.
UC Berkeley makes conferences, lectures, sporting events, graduation ceremonies, and other University events available to the public on its websites and on other online platforms, including its YouTube and Apple Podcasts channels. It also makes courses available on its UC BerkeleyX platform. Much of this online content is not accessible to people with disabilities because it lacks captions and transcripts for individuals who are deaf and alternative text describing visual images for individuals who are blind. It is also formatted in a way that does not allow individuals with disabilities to access the content using screen readers or other assistive technology.Under the three-and-a-half-year long consent decree, which requires court approval, UC Berkeley will make all future and the vast majority of its existing online content accessible to people with disabilities. This includes BerkeleyX courses, university websites, and video and podcast content on its YouTube, Apple Podcasts, and other third-party platforms. UC Berkeley will also revise its policies, train relevant personnel, designate a web accessibility coordinator, conduct accessibility testing of its online content, and hire an independent auditor to evaluate the accessibility of its content.
For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Grant Establishes New Center to Improve Conditions and Environments in JailsRead the Press Release
The Office of Justice Programs (OJP)’s Bureau of Justice Assistance (BJA) and the National Institute of Corrections (NIC) announced today a grant award of almost $2 million to establish the Department of Justice Jails and Justice Support Center to help create and maintain safe environments for people in the custody of the nation’s jails and those who work in jail facilities.
“It is the responsibility of our corrections systems — jails and prisons alike — to keep individuals in their custody safe and to treat them with dignity and respect,” said Associate Attorney General Vanita Gupta. “We are pleased to work with our partners to ensure that the professionals operating our nation’s jails have the tools and training they need to safeguard the rights and well-being of individuals incarcerated in their facilities.”
More than 3,000 jails are in operation across the United States, with 10.3 million admissions in 2019 and an average daily census of 734,500. Jail administrators face a multitude of challenges, including high population turnover, limited resources and a broad mix of sentenced and unsentenced individuals. Of particular concern is mortality in jails. OJP’s Bureau of Justice Statistics found that 1,200 people died in local jails in 2019.
This award aims to establish a center that will be a centralized hub for providing resources and technical assistance support to help jails maintain safe and humane environments for people who are detained, for their visitors and for those who work there. It will also provide jail staff with specialized trainings, core competency development, expert assessments and consultation on issues related to jail administration, and other professional development resources. The center will be the first of its kind to maximize the core missions, resources and capabilities of both BJA and NIC to expand Justice Department support for jail administrators who identify and seek to address challenges in their systems.
“Millions of people cycle through America’s jails each year, bringing with them a host of challenges, but also presenting opportunities to address the health and well-being of those who enter and leave the system,” said BJA Director Karhlton F. Moore. “This new resource will help jail professionals address the urgent problems they face daily and ensure that conditions inside their facilities are safe, humane and constitutionally sound.”
Shaina Vanek, who served as NIC Acting Director for over five years before leaving recently for a detail at the Consumer Financial Protection Bureau, was instrumental in conceptualizing and designing the center. The award to establish the center is being made to CNA. The National Sheriffs’ Association, the Major County Sheriffs of America, the American Jail Association and the National Association of Counties are partners in the effort. These organizations represent jail administrators and sheriffs’ departments across the country and will use their combined talent and expertise to support the center’s mission.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
The National Institute of Corrections advances public safety by shaping and enhancing correctional policies and practices through leadership, learning and innovation. More information about NIC can be found at www.nicic.gov.
Justice Department Awards Almost $160 Million to Support Forensic ScienceRead the Press Release
The Department of Justice’s Office of Justice Programs (OJP) announced today almost $160 million in grant awards to support crime laboratories, fund forensics research, decrease DNA backlogs and help investigators locate missing persons and identify human remains. The funding is administered by OJP’s Bureau of Justice Assistance (BJA) and National Institute of Justice (NIJ).
“Forensic science can play an indispensable role in solving crimes, absolving the innocent and finding the missing — all of which helps deliver justice to victims and their families,” said Associate Attorney General Vanita Gupta. “The Justice Department is pleased to support the thousands of dedicated professionals who investigate cases, staff our nation’s crime labs and work so hard to help ensure the fair and effective operation of our criminal justice system.”
The awards announced today will support DNA analysis, build the capacity of the nation’s crime labs to examine forensic evidence, help solve cold cases and enable coroners, medical examiners and law enforcement officials to locate missing persons and identify human remains. Grants will also expand the base of knowledge about the utility of forensic tools employed by investigators.
“One of the most urgent challenges facing criminal justice professionals today is earning and retaining the confidence of the communities they serve, a goal that forensic science, with all its untapped potential, can help us achieve,” said BJA Director Karhlton F. Moore. “These investments will give our state, local and Tribal partners the resources they need to solve crimes, improve the clearance rate for serious offenses like murder and sexual assault and bring long-awaited answers to victims and their families.”
“Building a strong forensic science infrastructure is a critical first step in the pursuit of justice and it is vital to ensuring the integrity of our justice system,” said NIJ Director Dr. Nancy La Vigne. “The National Institute of Justice is proud to help strengthen our nation’s forensic network by widening our understanding of the application of scientific methods and techniques to public safety.”
BJA and NIJ are distributing millions of dollars in awards to state and local jurisdictions throughout the United States and territories. Below is a list of funded grants. Descriptions of individual awards can be found by clicking on the links.
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BJA is awarding $25 million under the Paul Coverdell Forensic Science Improvement Grants Program (Formula) and Paul Coverdell Forensic Science Improvement Program (Competitive) to improve forensic science and medical examiner/coroner services, including services provided by laboratories operated by states and units of local government.
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BJA is awarding $7.5 million under the Prosecuting Cold Cases Using DNA Program to increase the capacity of state and local prosecution offices to address and close violent crime cold cases.
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BJA is awarding $2 million under the Strengthening the Medical Examiner-Coroner System Program to strengthen the medical examiner-coroner system in the United States by supporting forensic pathology fellowships and providing resources necessary for medical examiner and coroner offices to achieve and maintain accreditation.
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BJA is awarding $100 million under the DNA Capacity Enhancement for Backlog Reduction Program to increase the capacity of publicly funded forensic DNA and DNA database laboratories to process more DNA samples, thereby helping to reduce the number of forensic DNA and DNA database samples awaiting analysis and/or prevent a backlog of forensic and database DNA samples.
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BJA is awarding $4.5 million under the Missing and Unidentified Human Remains Program to provide funding to eligible applicants for services focused on reporting and identifying missing persons and unidentified human remains cases in the United States.
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BJA is awarding $2.8 million under the Forensics Training and Technical Assistance Program to provide support to the forensic science grant programs administered by the BJA (an estimated 500-plus grantees). These programs provide states and localities with resources and tools to improve the quality of their forensic science services in order to meet the challenges of crime and justice and to improve overall public safety.
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NIJ is awarding $11.7 million under the Research and Development in Forensic Science for Criminal Justice Purposes to support projects that will increase the body of knowledge to guide and inform forensic science policy and practice, or lead to the production of useful materials, devices, systems or methods that have the potential for forensic application.
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NIJ is awarding $1.3 million under the Research and Evaluation for the Testing and Interpretation of Physical Evidence in Publicly Funded Forensic Laboratories to produce practical knowledge that has the potential to improve the examination and interpretation of physical evidence in forensic science laboratories.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Jury convicts out of state woman in murder for hire caseRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has convicted a 52-year-old woman for conspiracy to commit murder for hire, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for less than two hours before convicting Viola Elizabeth Garcia, Oxnard, California, following a four-day trial.
During trial, the jury heard that in 2018, Mexican Mafia gang members arranged for the murder of an individual residing in Mission. An inmate who was serving a sentence for an attempted murder in 1999 contracted a Colonia Chiques gang member on parole in Oxnard, California, to execute the murder in exchange for $20,000.The gang member recruited and conspired with three additional individuals including Garcia who was his mother. Testimony revealed she agreed to travel from California to Texas to commit the murder in exchange for payment.
On Aug. 30, 2018, Garcia and co-conspirators forcibly entered the victim’s residence in
Mission and attempted to execute the murder. Their attempt was unsuccessful and they tried to flee from the scene. At that time, Garcia led responding law enforcement officers on a high speed chase until she crashed the vehicle.
The jury also heard that in July 2018, they attempted to murder the same victim.
At trial, Garcia admitted she traveled to Texas in July and August 2018 with the co-conspirators while they were in possession of firearms. She also admitted to being present and witnessing gunshots fired in the July 2018 murder attempt.Garcia attempted to convince the jury that she was unaware of any agreement or attempt to commit murder and claimed the purpose of the trip was to transport co-conspirators to visit family members and to look at potential real estate for her daughter who resided in Arizona.
They did not believe those claims and found her guilty as charged.
U.S. District Judge Ricardo H. Hinojosa presided over trial and set sentencing for Jan. 30, 2023. At that time, Garcia faces up to 10 years in federal prison and a possible $??? maximum fine.
Garcia will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of the California Department of Corrections and Rehabilitation and police departments in Mission and Oxnard, California. Assistant U.S. Attorneys Roberto Lopez Jr., Cahal P. McColgan and Sarina S. DiPiazza are prosecuting the case.Jury convicts out of state woman in murder for hire caseRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has convicted a 52-year-old woman for conspiracy to commit murder for hire, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for less than two hours before convicting Viola Elizabeth Garcia, Oxnard, California, following a four-day trial.
During trial, the jury heard that in 2018, Mexican Mafia gang members arranged for the murder of an individual residing in Mission. An inmate who was serving a sentence for an attempted murder in 1999 contracted a Colonia Chiques gang member on parole in Oxnard, California, to execute the murder in exchange for $20,000.
The gang member recruited and conspired with three additional individuals including Garcia who was his mother. Testimony revealed she agreed to travel from California to Texas to commit the murder in exchange for payment.
On Aug. 30, 2018, Garcia and co-conspirators forcibly entered the victim’s residence in
Mission and attempted to execute the murder. Their attempt was unsuccessful and they tried to flee from the scene. At that time, Garcia led responding law enforcement officers on a high speed chase until she crashed the vehicle.The jury also heard that in July 2018, they attempted to murder the same victim.
At trial, Garcia admitted she traveled to Texas in July and August 2018 with the co-conspirators while they were in possession of firearms. She also admitted to being present and witnessing gunshots fired in the July 2018 murder attempt.
Garcia attempted to convince the jury that she was unaware of any agreement or attempt to commit murder and claimed the purpose of the trip was to transport co-conspirators to visit family members and to look at potential real estate for her daughter who resided in Arizona.
They did not believe those claims and found her guilty as charged.
U.S. District Judge Ricardo H. Hinojosa presided over trial and set sentencing for Jan. 30, 2023. At that time, Garcia faces up to 10 years in federal prison.
Garcia will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of the California Department of Corrections and Rehabilitation and police departments in Mission and Oxnard, California. Assistant U.S. Attorneys Roberto Lopez Jr., Cahal P. McColgan and Sarina S. DiPiazza are prosecuting the case.
Jamestown Man Pleads Guilty to Selling Drugs Which Cuased Serious Bodily InjuryRead 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 Bradley D. Knapp, 43, of Jamestown, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, heroin, fentanyl, and methamphetamine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that during the conspiracy, Knapp bought and sold heroin, fentanyl, and methamphetamine for profit and his own use, utilizing Facebook to conduct his drug trafficking activities. Knapp also used a West 9th Street residence in Jamestown to facilitate the manufacture, packaging, and distribution of the illegal drugs. On August 12, 2020, Knapp sold approximately a gram of heroin/fentanyl to an individual identified as M.H. The next day, on August 13, 2020, M.H. took approximately .5 grams of the heroin/fentanyl, overdosed, and stopped breathing. M.H. received multiple doses of Narcan and was revived.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
Sentencing is scheduled for March 28, 2023, before Judge Arcara.
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International Drug Trafficker Sentenced to 30 Years in Federal Prison for Transporting Thousands of Kilograms of Cocaine to United StatesRead the Press Release
CHICAGO — An international drug trafficker who partnered with Mexican drug cartels to purchase and transport thousands of kilograms of cocaine to Chicago and other parts of the United States has been sentenced to 30 years in federal prison.
LUIS EDUARDO GONZALEZ GARCIA established a sophisticated network of warehouses and front companies posing as legitimate businesses to distribute the cocaine and launder millions of dollars in proceeds. The warehouses were located in Chicago and the nearby suburbs of Naperville, Arlington Heights, and Plainfield, as well as in Texas and Georgia. At Gonzalez Garcia’s direction, the warehouse operators set up front companies and registered them with local governments as if they were legitimate businesses. The companies, which claimed to sell furniture, snack food, laundry detergent, or other items, often operated their own websites and hired employees to conceal the distribution of cocaine through the warehouses. The drugs and cash were primarily concealed in box pallets containing the types of goods the front companies purported to sell and then transported from Mexico on semi-trailer trucks driven by unwitting drivers. A “dirty” pallet in a typical shipment could contain up to 100 kilograms of cocaine or up to $1.5 million in cash.
From 2012 to 2017, Gonzalez Garcia was responsible for the distribution of thousands of kilograms of cocaine throughout the U.S. and the laundering of more than $50 million in narcotics proceeds.
Gonzalez Garcia, 55, of Monterey, Mexico, pleaded guilty earlier this year to federal drug conspiracy and money laundering charges. In addition to the prison sentence, U.S. District Judge Ronald A. Guzman on Nov. 16, 2022, fined Gonzalez Garcia $1.5 million.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration.
This case was part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles the highest-level drug trafficking organizations and other criminal networks 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.
“By successfully laundering tens of millions of drug proceeds back down to himself and his cartel partners in Mexico, defendant not only undoubtedly enriched himself but also enriched the Mexican drug cartels – some of the most dangerous criminal organizations in the world,” Assistant U.S. Attorney Sean J.B. Franzblau argued in the government’s sentencing memorandum. “Anyone who is considering partnering with the cartels to move their products from Mexico to the streets of this country must know that they will face the severest of consequences.”
Indianapolis Drug Dealer Sentenced to 130 Months in Federal Prison for Armed Methamphetamine TraffickingRead the Press Release
INDIANAPOLIS – Jacob Wall, 29, of Indianapolis, was sentenced to 130 months in federal prison after pleading guilty to possession with intent to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking crime.
According to court documents, on January 14, 2020, Indianapolis Metropolitan Police Department (IMPD) officers saw a vehicle driven by an individual, later identified as the Wall, engage in a narcotics transaction at a gas station near Lynhurst Avenue, in Indianapolis. Officers stopped the vehicle after witnessing Wall commit several traffic infractions.
When officers approached the vehicle, they saw plastic baggies sticking out of a backpack in the back seat. A K9 officer arrived and indicated there were drugs in the vehicle. Officers searched and found two baggies containing 893 grams of methamphetamine, marijuana, pills, a .45 caliber Glock M30 semiautomatic handgun, ammunition, and a digital scale. Officers also found several baggies of marijuana in a box inside the vehicle, which they later learned were the drugs Wall was selling at the gas station. Wall was arrested at the scene of the traffic stop.
Wall was previously convicted in Marion County, Indiana, of multiple felony offenses, including burglary, criminal gang activity, and battery. Wall is prohibited under federal law from prohibiting firearms due to these felony offenses.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, made the announcement.
DEA investigated the case. The Indianapolis Metropolitan Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that Wall be supervised by the U.S. Probation Office for two years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Abhishek S. Kambli 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.
Huntington Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Melissa Dawn Lockhart, 49, of Huntington, pleaded guilty today to distribution of a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on February 25, 2021, Lockhart sold approximately 5 grams of methamphetamine to a confidential informant at her Huntington residence.
Lockhart is scheduled to be sentenced on February 21, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-73.
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Huntington Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – Kilan Nicks, also known as “Low,” 26, of Huntington, pleaded guilty today to distribution of 5 grams or more of methamphetamine and a quantity of fentanyl, and to possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on May 6, 2022, Nicks sold approximately 4 grams of fentanyl and 29 grams of methamphetamine to a confidential informant at a Roby Road apartment in Huntington. On June 7, 2022, law enforcement officers executed a search warrant at a McVeigh Avenue residence in Huntington while Nicks was present. Nicks admitted to possessing a Taurus 9mm pistol and approximately $3,635 found during the search. Nicks further admitted that the firearm was for his protection and the cash was proceeds from his distribution of drugs.
Nicks also admitted to conspiring with other individuals to distribute methamphetamine and fentanyl in the Huntington area from February 2022 until around June 2022. Nicks traveled to California and Arizona and acquired methamphetamine and fentanyl that he transported back to the Southern District of West Virginia for distribution as part of the conspiracy. Nicks maintained the Roby Road apartment and an 18th Street residence to store and distribute the drugs. Nicks further admitted to selling a total of 37.5 grams of fentanyl and 200 grams of methamphetamine to a confidential informant in the Huntington area over 10 separate transactions during the conspiracy.
On June 7, 2022, law enforcement officers executed search warrants at the 18th Street residence and a residence in Chesapeake, Ohio. Nicks admitted to possessing 690.71 grams of fentanyl and a Radical Firearms, M4 5.56mm rifle seized at the 18th Street residence, and to possessing a Masterpiece Arms, Defender 9mm pistol, and a blender containing fentanyl residue seized at the Chesapeake residence.
Nicks is scheduled to be sentenced on February 2, 2023, and faces a mandatory minimum of 10 years and up to life in prison, five years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-118.
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Honduran Man Sentenced to Prison for Document FraudRead the Press Release
A man who used a false identification document and a false social security number was sentenced today to more than two months in federal prison.
Jose Lindolfo Henriquez-Arriaga, age 39, a citizen of Honduras illegally present in the United States and residing in Charles City, Iowa, received the prison term after a September 26, 2022, guilty plea to one count of unlawful use of identification documents and one count of misuse of a social security number.
At the guilty plea, Henriquez-Arriaga admitted he used a fraudulent Social Security card and a fraudulent Permanent Resident Card, also known as a “green card,” both bearing his name, to prove his authorization to work in the United States when he completed employment and tax forms in June 2021 at a business in Alden, Iowa. The number on the Social Security card was unassigned and the number on the Permanent Resident Card was assigned to a Korean female.
Henriquez-Arriaga was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Henriquez-Arriaga was sentenced to 77 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Henriquez-Arriaga is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-68.
Follow us on Twitter @USAO_NDIA.
Holyoke Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Holyoke man associated with the CJNG (Cartel Jalisco Nueva Generacion) drug cartel has pleaded guilty to drug trafficking charges involving fentanyl.
Josue Rivera Rodriguez, a/k/a “Bori,” 45, pleaded guilty on Nov. 18, 2022 to one count of conspiracy to distribute 400 grams or more of fentanyl, two counts of distribution of 40 grams or more of fentanyl and one count of distribution of 400 grams or more of fentanyl. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Feb. 6, 2023. Rodriguez was arrested and charged in April 2021.
“The CJNG cartel is one of the most dangerous criminal organizations in Mexico. Mr. Rodriguez conspired to bring CJNG’s violent drug trafficking operations into our Commonwealth. Because of the exceptional work of our law enforcement partners, he failed,” said United States Attorney Rachael S. Rollins. “Not only did he distribute considerable quantities of fentanyl on behalf of the cartel into our communities, agents also seized deadly firearms from his home – including a fully automatic AR-15 machinegun and several handguns fitted with laser sight. These weapons are far too excessive and powerful for any claim of self-defense. They are designed for destruction and harm. Stopping the flow of illegal narcotics from entering into our communities remains the most critical step in combating violent criminal activity directly at its source.”
"Josue Rivera Rodriguez trafficked deadly fentanyl all over Massachusetts including Watertown, Revere, Holyoke, and Springfield for one of the largest and most violent transnational criminal organizations operating in Mexico and the United States. Equally troubling is what we found when we took him into custody— a cache of high-powered weapons, including an AR-15 assault rifle, a bullet proof vest, and even a police hat with insignia,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case illustrates the FBI’s commitment to removing large-scale drug traffickers like Rodriguez who are a clear and present danger to our communities from our streets before they can ruin any more lives.”
“DEA is committed to investigating those involved with drug trafficking in Massachusetts,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities. This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
Rodriguez was recorded delivering $35,000 to a cooperating witness and using a code indicating that the money was intended for the CJNG cartel. Thereafter, on three occasions in 2020 and 2021, Rodriquez was recorded distributing over 750 grams of fentanyl to the cooperating witness.
At the time of his arrest in April 2021, approximately 300 grams of fentanyl; an AR-15 assault rifle; five semi-automatic pistols, including handguns capable of carrying large-caliber ammunition and fitted with a laser sight; a bullet-proof vest; a police hat with insignia; packaging materials; cellphones; a money counter; and $1,900 cash was seized from Rodriguez’s residence.
The charges of conspiracy to distribute 400 grams or more of fentanyl and distribution of 400 grams or more of fentanyl provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution of 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 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.
U.S. Attorney Rollins, FBI SAC Bonavolonta, DEA SAC Boyle and Holyoke Police Chief Manny Febbo made the announcement today. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Gang Member Sentenced to Prison Resulting from Organized Crime Drug Enforcement Task Forces Investigation in Southwest GeorgiaRead the Press Release
ALBANY, Ga. – A documented member of the Bloods criminal street gang organization with ties to California was sentenced to serve 30 years in prison for directing the distribution of methamphetamine in Southwest Georgia.
Calvin Westbrook aka Lo Cal, 39, of Albany, formerly of Los Angeles, was sentenced to serve 360 months in prison to be followed by five years of supervised release on Nov. 18 after he previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. U.S. District Judge Leslie Gardner handed down the sentence.
According to court documents, agents began investigating Westbrook’s activities brokering methamphetamine and fentanyl in 2020. Westbrook, a documented member of the Bloods criminal street gang, was recorded discussing details with his sources of supply in Atlanta about purchasing five kilograms of methamphetamine for a customer in South Carolina and two kilograms of methamphetamine for himself on Nov. 13, 2020. Westbrook directed co-defendant Tyshambriya Gervin, 29, of Albany, to engage co-defendant Kashambriya Chester, 23, of Albany, to move the methamphetamine from Atlanta to Albany so Westbrook would not be “riding dirty.” On Nov. 16, Gervin and Chester drove together to Atlanta, where they met up with Westbrook to conduct the methamphetamine transaction. On the return trip to Atlanta, Gervin and Chester were taken into custody in Cordele, Georgia, in possession of two kilograms of methamphetamine. Westbrook was driving in another car ahead of them. Westbrook was taken into custody on Dec. 15.
While in the Tift County Jail, Westbrook was recorded making threats to harm a witness. Westbrook also posted threats on social media and directed a co-defendant in this event, Diamond Thomas, 23, of Albany, to assist in his efforts. Thomas pleaded guilty to conspiracy to tamper with a witness and was sentenced to 24 months of probation on June 2, 2022.
Co-defendants Gervin and Chester both pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. On June 2, 2022, Gervin was sentenced to serve 60 months in prison to be followed by two years of supervised release and Chester was sentenced to time served and three years of supervised release.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by GBI, FBI, the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lee County Sheriff’s Office, with assistance from the Georgia State Patrol (GSP).
The case was prosecuted by Assistant U.S. Attorney Leah McEwen.
Founder and Former Chief Investment Officer of Infinity Q Pleads Guilty to Securities FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMES VELISSARIS, the founder and former chief investment officer of Infinity Q Capital Management (“Infinity Q”), a New York based investment adviser that ran a mutual fund and a hedge fund that purported to have approximately $3 billion in assets under management, pled guilty to securities fraud. VELISSARIS made false and misleading statements to investors and others concerning Infinity Q’s process for valuing certain over-the-counter (“OTC”) derivative positions that made up a substantial portion of the holdings of the mutual and hedge funds and also fraudulently mismarked those securities in ways that did not reflect their fair value. VELISSARIS committed the mismarking scheme in order to inflate the value of the investment funds as reported to investors, to attract and retain capital, and to increase his own compensation. In order to avoid detection of the scheme, VELISSARIS provided both Infinity Q’s auditor and the Securities and Exchange Commission (“SEC”) with falsified or altered documents, including providing the auditor with altered term sheets that served to provide fabricated support for the fraudulently inflated values. Today’s plea was taken by U.S. District Court Judge Denise Cote.
U.S. Attorney Damian Williams said: “Today’s guilty plea demonstrates this Office’s resolve to pursue even the most sophisticated of financial crimes. James Velissaris thought he could get away with mismarking some of the most esoteric derivative products on Wall Street by manipulating sophisticated financial models and computer code. This case has exposed that fraud and shown that Velissaris lied to his investors in order to line his own pockets with inflated fees. Velissaris will now be held accountable for his actions.”
According to the allegations contained in the Indictment, other publicly available information, and statements made in court:
Background
VELISSARIS was the founder and chief investment officer of Infinity Q, an investment adviser that ran both a mutual fund (the “Mutual Fund”), started in about 2014, and a hedge fund (the “Hedge Fund,” and collectively the “Investment Funds”), started in about 2017. As of 2021, the two funds purported to have approximately $3 billion in assets under management. Infinity Q was headquartered in New York, New York, and employed a small staff, including a chief compliance and chief risk officer (“Employee-1”).
A major component of both the Mutual Fund and the Hedge Fund’s holdings were over-the-counter (“OTC”) derivative positions that involved customized contracts that allowed the counterparties to take positions on the volatility, or price movement, of underlying assets or indices. VELISSARIS, through Infinity Q, represented to its investors that it valued these OTC derivative positions based on fair value, and that in order to do so, it utilized the services of an independent third-party provider. In particular, Infinity Q represented to investors and other stakeholders that it used Bloomberg Valuations Service (“BVAL”) to independently calculate the fair value of these positions, in accordance with the terms of the underlying derivative contracts. These OTC derivative positions comprised hundreds of millions of dollars of the Investment Funds’ portfolios.
VELISSARIS’ Scheme to Lie to Investors and Inflate Derivative Swap Positions
In fact, however, VELISSARIS defrauded Infinity Q’s investors by taking an active role in the valuation of Infinity Q’s positions and by modeling the positions in ways that were not based on the actual terms of the underlying contracts and were inconsistent with fair value. VELISSARIS’ input into the BVAL valuation process was inconsistent with Infinity Q’s representations about the independence of the process and allowed VELISSARIS to fraudulently mismark positions in BVAL. VELISSARIS engaged in the mismarking of positions in BVAL by making false entries in BVAL’s system including by secretly altering the computer code employed by BVAL that caused BVAL to alter and disregard certain critical terms. Altering and disregarding terms in this fashion caused BVAL to report values that were artificially inflated and, often, much higher than fair value.
By manipulating OTC derivative positions in BVAL in this way, VELISSARIS caused numerous positions in the Investment Funds to have anomalous and, at times, impossible valuations. For example, at times, VELISSARIS made manipulations in either the Mutual Fund and/or the Hedge Fund that caused certain identical positions that were held by both the Mutual Fund and the Hedge Fund (namely, a position where all the material terms are the same) to have substantially divergent values. In other cases, some of VELISSARIS’ manipulations caused certain positions held by the Investment Funds to have impossible values, such as where, under the true terms of the swap, the value adopted by VELISSARIS could only be true if volatility were negative – a condition which is mathematically impossible.
Ultimately, after VELISSARIS’ mismarking scheme was uncovered in or about February 2021, Infinity Q liquidated the Investment Funds and sold its OTC derivative positions. These positions were sold for hundreds of millions of dollars less than their purported market values in BVAL, thereby resulting in substantial losses to the investors in the Investment Funds.
VELISSARIS Lies to Auditors and Obstructs the SEC’s Investigation
In order to hide this scheme and prevent its detection, VELISSARIS lied to numerous outside stakeholders and regulators. First, in order to prevent Infinity Q’s outside auditor (the “Auditor”) from discovering the fraud, VELISSARIS provided the Auditor with falsified term sheets from counterparties that he had altered to change the true terms of certain OTC derivative positions. In particular, in connection with a number of audits, the Auditor selected certain OTC positions that it would independently value in order to confirm the reasonableness of Infinity Q’s values from BVAL. In order to ensure that the Auditor would not arrive at materially different results when independently valuing positions that VELISSARIS had manipulated in BVAL, VELISSARIS altered the terms of certain deal documents and provided them to the Auditor. After receiving these falsified documents and relying on them in its independent evaluation, the Auditor confirmed the reasonableness of VELISSARIS’ valuations in BVAL.
Furthermore, beginning in May 2020, the SEC opened an inquiry and later an investigation into Infinity Q’s valuation practices. In connection with that investigation, VELISSARIS provided false and misleading information to the SEC. For example, when the SEC asked for original documents that had been provided to investors, VELISSARIS altered the documents before providing them to the SEC, including certain alterations that would help hide his mismarking scheme. For example, Infinity Q’s original investor materials stated that “[o]nce a price is established for a portfolio security, it shall be used for all Funds that hold the security.” As explained above, this was untrue, and on numerous occasions, manipulations in BVAL made by VELISSARIS caused the same positions in the Mutual Fund and the Hedge Fund to have substantially different values. To conceal the falsity of Infinity Q’s disclosures, VELISSARIS, along with Employee-1, removed this line from investor documents that were provided to the SEC.
In June 2020, the SEC requested that Infinity Q provide additional materials, including documents regarding Infinity Q’s valuation committee and all of its meeting minutes. Infinity Q’s investor materials had represented that Infinity Q had a valuation committee, including VELISSARIS, that the committee would meet monthly or more often, and that VELISSARIS would be responsible for preparing minutes of such meetings. In fact, however, VELISSARIS had not kept notes of any such meetings. Accordingly, days before responding to the SEC, VELISSARIS made up notes purporting to be from valuation committee meetings in 2019 and 2020 and submitted them to the SEC.
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VELISSARIS, 38, of Atlanta, Georgia, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only. Sentencing has been scheduled for March 3, 2023, in front of Judge Cote.
Mr. Williams praised the work of the Federal Bureau of Investigation. He further thanked the SEC and the Commodity Futures Trading Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Daniel Loss, and Daniel Tracer are in charge of the prosecution.
Former Union Officer and Employee Found Guilty of Conspiracy, Wire Fraud, and EmbezzlementRead the Press Release
HONOLULU – After a four-week jury trial before Senior United States District Judge Helen Gillmor, a federal jury today found husband and wife Defendants Brian Ahakuelo (age 61) and Marilyn Ahakuelo (age 59) each guilty of conspiracy, wire fraud, and embezzlement for crimes committed while they were employed by the International Brotherhood of Electrical Workers (“IBEW”) Local 1260. Brian Ahakuelo, who served as IBEW’s Business Manager and Financial Secretary, was additionally convicted of money laundering. Judge Gillmor ordered Brian Ahakuelo detained in custody pending their sentencing, which is set for March 28, 2023. Marilyn Ahakuelo was permitted to remain released on bail. A third defendant, Jennifer Estencion, was found not guilty on all charges.
At trial, the evidence showed that Brian Ahakuelo hired family members at high salaries and authorized the use of union funds for personal purposes, including extravagant travel for himself and those loyal to him. In the case of one family member hired by Brian Ahakuelo, little legitimate work was performed. The evidence at trial also showed that Brian and Marilyn Ahakuelo used union funds to purchase personal trips to the mainland, and that Brian Ahakuelo engaged in self-dealing by using union funds to purchase a truck already owned by Marilyn Ahakuelo while allowing her to continue to use it. When his activities largely depleted the union’s coffers, Brian Ahakuelo, with the help of Marilyn Ahakuelo and other union employees, rigged a vote on a resolution to increase membership dues. The voter fraud caused members to pay an additional $3.7 million in dues over approximately eighteen months.
“The extensive testimony and voluminous documentary evidence produced during this trial supports the just and important verdict of guilt returned by the jury as to Brian and Marilyn Ahakuelo,” said United States Attorney Clare E. Connors. “The Department of Justice is committed to working with our law enforcement partners to ensure that our labor leaders carry out their fiduciary duty to members, and that when the evidence reveals otherwise, they face criminal consequences in a court of law.”
“A famous union organizer named Thomas Donahue once said that the only effective answer to organized greed is organized labor. Obviously, Mr. Donahue never met Mr. and Mrs. Ahakuelo,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Unfortunately, organized greed can be found anywhere, but wherever people like the Ahakuelos choose to work their schemes, there IRS-CI will be also.”
“The vast majority of union officers and employees rigorously follow the law and serve their unions honorably. Brian Ahakuelo, along with his wife, Marilyn Ahakuelo, are the rare exceptions. Brian Ahakuelo betrayed the trust of the union membership who rightfully expected him, as a union official, to protect and safeguard their union’s funds and assets for the benefit of the union and not for his personal interests. The Office of Labor-Management Standards will always find those rare exceptions who choose to break the law and the faith of their union members and bring them to justice,” said Ed Oquendo, District Director, Los Angeles District Office, U.S. Department of Labor, Office of Labor-Management Standards.
“The Hawai‘i Department of the Attorney General is grateful to the team of investigators from our Department and at the federal level, as well as the U.S. Attorney’s prosecutors for their commitment and dedication in achieving a just verdict in this case,” Attorney General Holly T. Shikada said. “We will continue to work collaboratively to hold individuals who defraud those they are elected to represent accountable.”
Brian Ahakuelo and Marilyn Ahakuelo were convicted of one count of conspiracy, which carries a maximum sentence of five years and 42 counts of wire fraud, which each carry a maximum sentence of 20 years. Brian and Marilyn Ahakuelo also were convicted of embezzlement of a labor union asset (six counts and three counts, respectively), which each carry a maximum sentence of five years. Brian Ahakuelo alone was convicted of 19 counts of money laundering, which each carry a maximum sentence of ten years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This conviction is the result of an investigation conducted by the Internal Revenue Service-CI, Department of Labor – Office of Labor Management Standards, and State of Hawaii Attorney General’s Office. Assistant U.S. Attorneys Michael F. Albanese and W. KeAupuni Akina prosecuted the case.
Former U.S. Postal Service Employee Pleads Guilty to Federal Mail CrimeRead the Press Release
CHARLESTON, W.Va. – Earnestine White, 48, of Evans, pleaded guilty today to delay or destruction of mail. White admitted to failing to process mail while a U.S. Postal Service employee assigned to the Post Office in Cottageville, Jackson County.
According to court documents and statements made in court, White was employed as a clerk at the Cottageville Post Office from 2017 through 2021. While employed at the Cottageville Post Office, White was responsible for accepting and processing mail dropped off by customers and for ensuring customers received incoming mail. White admitted that from about September 2020 until September 21, 2021, she knowingly delayed the mail by failing to forward mail to its proper location that came into her possession through her employment with the United States Postal Service.
White is scheduled to be sentenced on February 9, 2023, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,00 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Ryan Blackwell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-162.
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Former Tribal Official Sentenced to Prison for Bribery SchemeRead the Press Release
WASHINGTON – A former Tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) was sentenced today to six years and three months in prison for a bribery scheme involving soliciting and accepting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation, which is the home of the MHA Nation.
According to court documents, from November 2014 through November 2018, Frank Charles Grady, 54, of Billings, Montana, was an elected representative on the Tribal Business Council, the governing body of the MHA Nation. Beginning around 2016 and continuing through 2017, Grady solicited and accepted bribes and kickbacks totaling more than $260,000 from a contractor operating on the Fort Berthold Indian Reservation. In exchange for the payments, Grady used his official position to help the contractor’s business, including by awarding contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Klemetsrud Puhl for the District of North Dakota, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Minnesota Field Office investigated the case.
Trial Attorneys Andrew Tyler and John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Greenley for the District of North Dakota are prosecuting the case.
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22-1246
Former Tribal Official Sentenced to Prison for Bribery SchemeRead the Press Release
A former Tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) was sentenced today to six years and three months in prison for a bribery scheme involving soliciting and accepting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation, which is the home of the MHA Nation.
According to court documents, from November 2014 through November 2018, Frank Charles Grady, 54, of Billings, Montana, was an elected representative on the Tribal Business Council, the governing body of the MHA Nation. Beginning around 2016 and continuing through 2017, Grady solicited and accepted bribes and kickbacks totaling more than $260,000 from a contractor operating on the Fort Berthold Indian Reservation. In exchange for the payments, Grady used his official position to help the contractor’s business, including by awarding contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Klemetsrud Puhl for the District of North Dakota, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Minnesota Field Office investigated the case.
Trial Attorneys Andrew Tyler and John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Greenley for the District of North Dakota are prosecuting the case.
Former Supervisory Correctional Officer Sentenced for Abusing a Hawaii Inmate and Leading a Conspiracy to Cover up the BeatingRead the Press Release
A former supervisory correctional officer at the Hawaii Community Correctional Center was sentenced to 144 months in federal prison for his role in the assault of an inmate and his leadership of a multi-year conspiracy to cover up the abuse.
“The defendant had a non-violent inmate in his custody and care, and he abused both the inmate and the Constitution by permitting lower-ranking officers to commit an unjustified assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “His subsequent decision to orchestrate a multi-year cover-up is an affront to the principles of honesty and integrity that our society expects from law enforcement. His sentence makes clear that no one is above the law, and that when officers violate the civil rights of people under their supervision – through violence or obstruction – they will be held accountable.”
According to court documents and evidence introduced at trial, on June 15, 2015, Jonathan Taum, 50, supervised his two co-defendants and a third correctional officer while they transported an inmate across the facility. The inmate became frightened in the course of the transfer, and Taum’s fellow officers took the non-violent inmate to the ground and repeatedly punched and kicked him in the face, head, and body. As the other officers beat the inmate, Taum verbally encouraged them to continue. The inmate’s jaw, orbital socket and nose were broken in the course of the assault. In the months and years that followed, Taum led the officers in a cover-up conspiracy that included writing false reports, submitting false statements to internal affairs and providing false testimony to disciplinary board members.
“Protecting the civil rights of everyone in the community, including inmates, is at the heart of our system of justice,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “Supervisors in our correctional facilities are held to a higher standard of responsibility and as this case demonstrates, we will prosecute those who criminally violate the civil rights of those in their custody.”
“This case highlights how the FBI will vigorously investigate and hold accountable any individual who violates the civil rights of an inmate,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “We are committed in ensuring that every citizen—whether free or incarcerated—can exercise their protected liberties without fear of violence. This case should deter others in a position of power from such behavior in the future.”
Assistant Attorney General Clarke, U.S. Attorney Connors and Special Agent in Charge Merrill made the announcement.
The FBI Honolulu Field Office investigated the case.
Assistant U.S. Attorney Craig Nolan for the District of Hawaii, Special Litigation Counsel Chris Perras and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Political Staffer Admits Role in Scheme to Defraud Campaigns and Political Action CommitteesRead the Press Release
NEWARK, N.J. – A Union County man who previously served as a staff member in the New Jersey Senate today admitted his role in a conspiracy to falsely inflate the invoices that a political consultant submitted to various campaigns, political action committees, and IRS 501(c)(4) organizations, U.S. Attorney Philip R. Sellinger announced.
Antonio Teixeira, 43, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion.
According to documents filed in this case and statements made in court:
From 2014 to 2018, Teixeira conspired with Sean Caddle, and Caddle’s political consulting firms, to defraud various campaigns, political action committees, and 501(c)(4) organizations of $107,800. Teixeira then failed to report this illicit income on tax forms that he filed with the IRS during those same years.
Caddle was hired by a former New Jersey state senator to create the PACs and 501(c)(4)s so that they could raise and spend money to advocate on a variety of issues, including supporting particular candidates in local races around New Jersey. Teixeira served as the senator’s chief of staff and wielded influence over the consultants that the campaigns and organizations hired and the budgets that each of these organizations would receive.
Teixeira and Caddle conspired to falsely inflate the invoices that Caddle’s consulting firms submitted to the campaigns, PACs and 501(c)(4)s with phony campaign-related expenditures. Caddle and Teixeira were fraudulently padding the invoices because they agreed to split the difference between Caddle’s actual campaign expenditures and the overage charged to the organizations. Caddle paid a portion of Teixeira’s share to him in cash and funneled the remainder to Teixeira via checks made to out to Teixeira’s relatives in order to conceal that campaign money was being kicked back to Teixeira. In total, Teixeira received more than $100,000. Although Teixeira pocketed these fraudulent proceeds and used the money for personal expenses, he never reported the money on the tax forms that he filed with the IRS during the course of the scheme.
The wire fraud conspiracy charge carries a statutory maximum prison sentence of 20 years, while the tax evasion charge carries a statutory maximum of five years in prison. Both charges are also punishable by a fine of $250,000 or twice the gross gain or loss from the scheme, whichever is greatest. Sentencing is scheduled for March 27, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell, Chief of the U.S. Attorney’s Office Cybercrime Unit, and Executive Assistant U.S. Attorney Lee M. Cortes Jr.
Former Federal Agent Sentenced to More Than 10 Years in Prison for Accepting Bribes to Help Figure Associated with Organized CrimeRead the Press Release
LOS ANGELES – A former special agent with Homeland Security Investigations (HSI) was sentenced today to 121 months in federal prison for accepting cash payments and other benefits to help an organized crime-linked person, including taking official action designed to help two foreign nationals gain entry into the United States.
Felix Cisneros Jr., 48, of Murrieta, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay a fine of $30,000. Judge Klausner also entered a forfeiture order of $133,000 against Cisneros.
On May 3, at the conclusion of a five-day trial, a federal jury found Cisneros guilty of 30 felonies: one count of conspiracy to commit bribery of a public official, one count of bribery, 26 counts of money laundering and two counts of subscribing to a false tax return. Cisneros been in federal custody since the trial’s conclusion.
Over an 18-month period that started in September 2015, Cisneros accepted cash, checks, private jet travel, luxury hotel stays, meals and other items of value from a person identified in court documents as “Individual 1,” who was associated with a criminal organization. Cisneros received approximately $100,000 in checks and gifts from Individual 1 in 2015 and 2016.
Cisneros accepted the cash and other bribes while employed as a special agent with HSI, which is an agency within the United States Department of Homeland Security. In exchange for the bribes, Cisneros performed a series of official acts at the behest of Individual 1, including:
- Accessing a DHS database for information about a German national identified as W.R., and telling Individual 1 he removed a “hit” on W.R., “thus indicating derogatory information had been removed”;
- Placing an alert in a law enforcement database for an address associated with an illegal marijuana grow operation so Cisneros could learn of law enforcement interest and warn Individual 1;
- Obtaining an official DHS letter signed by an HSI assistant special agent in charge to allow the parole of Individual 1’s brother-in-law into the United States from Mexico, and later providing updates about the brother-in-law’s asylum application; and
- Collecting information on an associate of Individual 1 whose home had been searched by law enforcement and later providing Individual 1 with information about the investigation.
Cisneros also underreported his total income on his federal income tax returns by at least $20,000 for the year 2015 and at least $73,404 for the year 2016.
The FBI, IRS Criminal Investigation and the Department of Homeland Security’s Office of Inspector General investigated this matter.
Assistant United States Attorneys Michael J. Morse and Juan M. Rodriguez of the General Crimes Section prosecuted this case.
Former Dodge County Attorney Pleads Guilty to Civil Rights ViolationRead the Press Release
Acting United States Attorney Steven Russell announced that Oliver J. Glass, 47, of Fremont, Nebraska, pleaded guilty to a Criminal Information charging him with Conspiracy to Commit Deprivation of Rights Under Color of Law. Glass faces a maximum possible punishment of 1 year imprisonment, $100,000 fine, or both. Chief United States District Judge Robert F. Rossiter, Jr. ordered a Pre-Sentence Investigation and set sentencing for February 17, 2023, at 1:30 p.m.
As admitted to in the plea agreement:
Oliver J. Glass was appointed as the Dodge County Attorney in 2011 and was subsequently elected in 2014 and in 2018. In 2020, Glass’s wife filed for divorce. On March 6, 2020, Glass learned that his wife had been dating an individual identified in the Information as Victim 1.
Between March 6, 2020, through on or about December 22, 2020, Glass conspired with other individuals who are unnamed in the Information to deprive Victim 1 of his rights protected by the Constitution, specifically, his right against unreasonable search and seizure protected by the Fourth Amendment of the Constitution by conspiring to unlawfully stop or arrest Victim 1. Glass and others utilized their restricted access to the Nebraska Criminal Justice Information System (NCJIS) to obtain information about Victim 1. A supervisor in the Fremont Police Department advised other officers that Victim 1 was dating Glass’s wife and to be on the lookout for Victim 1 and provided other officers with Victim 1’s information, vehicle description, and license plate number. An officer within the Dodge County law enforcement community, while acting as a private investigator, used his law enforcement credentials to obtain access about Victim 1’s criminal history that was not publicly available. Members of law enforcement in Dodge County would drive by Victim 1’s apartment looking for Victim 1 without a legal justification or criminal predicate.
This case was investigated by the Federal Bureau of Investigation.
Fayette County Attorney Sentenced to Probation with Home Detention for Defrauding ClientsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 16, 2022, John William “JW” Eddy, age 40, of Fayette County, Pennsylvania was sentenced by United States District Court Judge Sylvia H. Rambo to five years of probation, including 21 months of home detention with electronic monitoring, for misappropriating funds from clients of his law practice between 2016 and 2020.
According to United States Attorney Gerard M. Karam, Eddy ran a private law practice, Eddy Law Office. As an attorney representing members of the public in the practice of law, Eddy was required to maintain a trust account for client funds, also known as an Interest on Lawyer Trust Account or “IOLTA.” This account was to be used for the securing of client funds, such as proceeds from legal settlements, fees advanced for services not yet performed, or money for court fees. Eddy admitted that between 2016 and 2020 he misappropriated $242,975.89 of client funds entrusted to him.
Eddy pleaded guilty to one count of wire fraud on February 9, 2022. Prior to his guilty plea, Eddy made full restitution to his victims in the amount of $242,975.89, equal to the amount of client funds that he misappropriated.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
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Fall River Man Charged with Bank RobberyRead the Press Release
BOSTON – A Fall River man has been charged in connection with robbing a TD Bank branch in downtown Boston.
William Sequeira, 59, was charged with one count of bank robbery and will appear in federal court in Boston at a later date.
According to the charging documents, on Sept. 30, 2022, a white male – later identified as Sequeira – entered the TD Bank branch on Union Street in Boston. Once inside, Sequeira allegedly approached a teller and stated, “give me all the $100s in the drawer,” and “give me all the money before I blow your brains out.” Sequeira fled on foot after obtaining money from the teller. It is alleged that surveillance footage of the robbery and subsequent interviews positively identified Sequeira as the robber.
On Oct. 5, 2022, law enforcement surveilling the Back Bay area in an effort to locate Sequeira spotted him entering a Citizens Bank branch on Boylston Street in Boston. There, it is alleged that Sequeira approached the teller, said “Give me hundreds,” and then threatened to shoot the teller if they did not move fast enough. Sequeira was immediately apprehended.
The charge of bank robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Valuable assistance was provided by the Fall River Police Department and the Suffolk County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
El fiscal general Merrick Garland emite un memorando para mejorar el acceso a servicios por parte de personas cuyo dominio del inglés es limitadoRead the Press Release
Observación: El presente comunicado de prensa ha sido traducido a varios idiomas. Véanse los documentos adjuntos más abajo.
El Departamento de Justicia emitió hoy un memorando pidiendo a los organismos federales que revisen sus prácticas y políticas de acceso lingüístico para fortalecer el compromiso del gobierno federal con las personas cuyo dominio del inglés es limitado (LEP, por sus siglas en inglés).
“Todas las personas en este país, independientemente del idioma que hablen, merecen tener acceso importante a los programas y las actividades que los organismos federales dirigen o apoyan”, dijo el fiscal general Merrick B. Garland. “El Departamento de Justicia está comprometido a trabajar con sus socios federales para derribar las barreras lingüísticas en los servicios gubernamentales, las que niegan a las personas la oportunidad completa de participar en los aspectos económico, social y cívico del diario vivir”.
Este memorando explica a grandes rasgos una manera de proceder para que los organismos federales mejoren, modernicen y lleven a cabo sus funciones relativas al acceso lingüístico conforme a la orden ejecutiva número 13166 de “Mejora del acceso a servicios para personas cuyo dominio del inglés es limitado”. Como se establece en el memorando, con la ayuda de la Oficina para el Acceso a la Justicia, la División de Derechos Civiles presidirá una iniciativa colaborativa encaminada a determinar: 1) si los organismos pueden seguir actualizando sus políticas y planes de acceso lingüístico; (2) si al difundir información sobre recursos, programas y servicios federales los organismos están alcanzando de manera eficaz a las personas cuyo dominio del inglés es limitado; (3) si los organismos han considerado actualizar o modificar la orientación para los beneficiarios de ayuda financiera federal con respecto a su obligación de proporcionar acceso lingüístico importante, conforme a los requisitos que se estipulan en el título VI de la Ley de Derechos Civiles de 1964 y en sus reglamentos de implementación; y (4) si los organismos pueden adaptar sus comunicaciones digitales para poder servir a las personas cuyo dominio del inglés es limitado.
Este memorando se fundamenta en labores existentes del Departamento de Justicia que tienen como meta interactuar con las personas cuyo dominio del inglés es limitado e incluye en el Plan estratégico de 2022 a 2026 del Departamento de Justicia un nuevo enfoque de mayor ayuda referente al acceso lingüístico. En mayo de 2022, el fiscal general Garland nombró a Ana Paula Noguez Mercado como coordinadora de acceso al idioma en la Oficina para el Acceso a la Justicia del Departamento de Justicia con la finalidad de ayudar a garantizar que el Departamento de Justicia sea un ejemplo a seguirse. Desde entonces, la Oficina para el Acceso a la Justicia ha aumentado el personal que se dedica al acceso lingüístico y está dirigiendo el “Grupo de trabajo en materia de acceso lingüístico” del Departamento de Justicia para que proporcione ayuda técnica y capacitación a todos sus integrantes a medida que siguen mejorando el acceso lingüístico para todos. La División de Derechos Civiles continúa manteniendo el sitio web www.LEP.gov, en el que se brindan recursos e información para ayudar a ampliar y mejorar, en conformidad con la ley federal, los servicios de asistencia lingüística para las personas cuyo dominio del inglés es limitado.
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Memorandum
Detroit Man Sentenced to Prison for Federal Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – Brian Martell Smith, 43, of Detroit, Michigan, was sentenced today to three years in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm, and for possessing a firearm with a removed, obliterated, or altered serial number.
According to court documents and statements made in court, on October 11, 2021, law enforcement officers encountered Martell at the Marcum Terrace apartments in Huntington, at which time Martell threw a Lorcin L9MM 9mm pistol to the ground and attempted to flee. Martell admitted to possessing the firearm, which officers recovered, and further admitted that the firearm’s manufacturer serial number had been removed, obliterated, or altered.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Smith knew he was prohibited from possessing a firearm because of his felony convictions for being a felon in possession of a firearm and for carrying or possessing a firearm when committing or attempting to commit a felony (weapons felony firearm) on September 18, 2008, in Michigan Third Judicial Circuit Court, and for possession with intent to deliver/manufacture less than 50 grams of cocaine on August 25, 1999, in Michigan Third Judicial Circuit Court.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-76.
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Coventry Woman Admits to Fraudulently Applying for and Receiving COVID Unemployment BenefitsRead the Press Release
PROVIDENCE – A Coventry woman today admitted to a federal judge that she fraudulently applied for and received more than $17,000 in unemployment benefits provided for by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance (PUA) program, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Deanna Alston, 34, admitted to the court that while collecting pandemic related unemployment benefits from the Rhode Island Department of Labor and Training, she filed fraudulent applications with the States of California and Pennsylvania, knowing that she was not entitled to collect benefits from those states. Between July 30, 2020, and September 8, 2020, Alston collected approximately $17,075 in unemployment befits that she was not entitled to receive.
Alston today pleaded guilty to a charge of wire fraud. She is scheduled to be sentenced on February 27, 2023. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
This case, as well as other instances of criminal activity related to fraudulent applications for pandemic-related unemployment insurance benefits, are being investigated jointly by the FBI, Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Stacey P. Veroni, Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at financialcrimes@risp.gov or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Court Authorizes the Seizure of Domains Used in Furtherance of a Cryptocurrency “Pig Butchering” SchemeRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia announced today the seizure of seven domain names used in a recent cryptocurrency confidence crime, known as “pig butchering.”
In pig butchering schemes, scammers encounter victims on dating apps, social media websites, or even random texts masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scam syndicate running fraudulent cryptocurrency investment platforms, where victims are persuaded to invest money. Once the money is sent to the fake investment app, the scammer vanishes, taking all the money with them, often resulting in significant losses for the victim. And that is exactly what happened in this instance.
According to court records, from at least May through August 2022, scammers induced five victims in the United States by using the seven seized domains, which were all spoofed domains of the Singapore International Monetary Exchange. The term “spoofed” refers to domain spoofing and involves a cyberattack in which fraudsters or hackers seek to persuade individuals that a web address or email belongs to a legitimate and generally trusted company, when in fact it links the user to a false site controlled by a cybercriminal. The scammers — using the confidence-building techniques described above — convinced the victims that they were investing in a legitimate cryptocurrency opportunity. After the victims transferred investments into the deposit addresses that the scammers provided through the seven seized domain names, the victims’ funds were immediately transferred through numerous private wallets and swapping services in an effort to conceal the source of the funds. In total, the victims lost over $10 million.
If you believe you are a victim, please contact CryptoFraud@SecretService.gov or IC3.gov to file a report. Please provide detailed information in your report, including any purported investment websites visited, telephone numbers, email accounts, and social media profiles used by scammers, and any cryptocurrency addresses, transaction hashes, and dates of transactions. Your responses are voluntary. Based on the information provided, you may be contacted by the United States Secret Service or other law enforcement entity and asked to provide additional information. This office cannot act as your attorney or provide you with legal advice. However, you may seek the advice of an attorney with respect to this or other related legal matters.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; William Mancino, Special Agent in Charge, Criminal Investigative Division of the U.S. Secret Service; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, announced the seizure of the domain names.
The U.S. Attorney’s Office for the Eastern District of Virginia is represented by Assistant U.S. Attorneys Annie Zanobini, Zoe Bedell, and Carina A. Cuellar. Georgiana L. MacDonald of the Justice Department’s National Cryptocurrency Enforcement Team (NCET) provided substantial assistance in this action.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-sw-596.
Concord Man Sentenced to 30 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
CONCORD - Jerry S. Roberts, Jr., 38, of Concord, was sentenced to 360 months in federal prison and lifetime supervised release for exploitation of a minor, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on July 15, 2019, the Concord Police arrested Roberts, a convicted sex offender, following his assault of another individual. The victim of the assault advised that Roberts and a minor (Child Victim A) had left their personal property in the victim’s apartment. Pursuant to a search warrant, detectives searched the bags and recovered assorted electronic media, including a digital camera. Detectives obtained an additional search warrant for the electronic media. From the digital camera, detectives identified two videos that Roberts filmed depicting Child Victim A engaging in sexually explicit conduct.
“Roberts is a repeat and dangerous sex offender against children. The sentence handed down in this case reflects the serious nature of the crimes committed by this defendant, which are particularly troubling given his multiple prior convictions for sexual abuse of young children,” said U.S. Attorney Young. “This office is committed to protecting the most vulnerable members of our society—our children—and to bringing sexual predators like Roberts to justice.”
“Today’s sentence reflects the seriousness of the crimes Roberts committed and damage he has done to the children he harmed. He will now be behind bars, unable to reoffend, while those he victimized can begin to heal and look to the future. Homeland Security Investigations is proud to provide assistance and expertise to our local partners in the Concord Police Department, working together to ensure predators like Roberts are brought to justice,” said Matthew Millhollin, Special Agent in Charge of Homeland Security Investigations in New England.
“The Concord Police Department remains committed to investigating crimes against children in an effort to protect such a vulnerable population,” said Lt. Marc P. McGonagle, Criminal Investigations Division. “We are thankful for the hard work that was put in by all investigators from the Concord Police Department, Homeland Security and staff from the US Attorney’s Office on this case.”
This matter was investigated by the Concord Police Department, with assistance from the U.S. Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Cam T. Le and Alexander S. Chen.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Compton Man Sentenced to over 9 Years in Prison for Targeting and Robbing Gay Men He Met on the Grindr Online Dating ApplicationRead the Press Release
LOS ANGELES – A Compton man was sentenced today to 111 months in federal prison for targeting and robbing Los Angeles-area gay men he met on the Grindr online dating application.
Derrick Patterson, 23, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $84,195 in restitution. At today’s sentencing hearing, Judge Walter applied a hate-crime enhancement to Patterson’s sentence.
Patterson has admitted in his plea agreement to robbing five victims from June 2021 to March 2022. He targeted his victims by using Grindr, a social networking platform for gay, bisexual, transgender and queer people. Patterson met his victims at their homes or in hotel rooms under the pretense of sexual encounters. Once there, Patterson asked to use the victims’ phones.
During a July 2021 incident, Patterson entered the victim’s home under the pretense of a sexual encounter. He then asked to borrow the victim’s phone. Patterson then had sex with the victim to distract him while using the victim’s phone to transfer himself money. When the victim realized something was wrong and protested, Patterson went to the victim’s kitchen, pulled out a kitchen knife, threatened the victim, and then used the victim’s Venmo account to steal $3,950. Patterson also used the victim’s online account to pay for two Hotels.com transactions, and he used the victim’s phone to send text messages to the victim’s friends and family in Nevada to request that they send the victim money, which Patterson intended to intercept.
In February 2022, Patterson entered another victim’s residence under the pretense of a sexual encounter. Patterson asked if he could use the victim’s phone. After the victim handed Patterson the phone, the victim turned away and then heard a stun gun activating. Patterson chased the victim with the stun gun and demanded money. The victim gave $120 to Patterson, who then demanded jewelry.
After Patterson left the victim’s home, he used the phone to ask the victim’s contacts for money. Patterson also used the victim’s phone to access the victim’s Apple Pay account and open a line of credit in the victim’s name with Goldman Sachs. Patterson then went to a T-Mobile store in Los Angeles and used the Goldman Sachs credit line to purchase Apple Airpods costing approximately $273. Patterson also used the victim’s bank card to pay for a hotel room.
Patterson admitted in court documents that he assaulted one victim – against whom he used a homophobic slur – and threatened to shoot another victim during an encounter in a hotel room.
The FBI’s investigation in this matter is ongoing. The Los Angeles Police Department, the Los Angeles County Sheriff’s Department and the Beverly Hills Police Department have provided substantial assistance.
Assistant United States Attorney Jeremiah M. Levine of the Violent and Organized Crime Section prosecuted this case.
Cleveland Man Charged with Distributing Narcotics that Led to Fatal OverdoseRead the Press Release
CLEVELAND – A Cleveland man was charged in a superseding indictment with distributing narcotics that led to the overdose death of another individual in January 2022.
The superseding indictment charges Rubin Austin, 54, with distributing a heroin, fentanyl and fluorofentanyl mixture to a victim in January 2022 who later ingested the substance, suffered an overdose and died as a result.
The superseding indictment also charges Austin with additional counts of distribution of heroin, fentanyl, fluorofentanyl and cocaine base (crack); possession with intent to distribute of heroin, fentanyl, fluorofentanyl and cocaine base (crack) and use of a communications facility to facilitate a drug trafficking offense.
According to court documents, in January 2022, officers with the Cleveland Division of Police responded to a residence for reports of an overdose death. At the scene, officers began an investigation into the incident and determined that the deceased had allegedly purchased narcotics from an individual identified as Defendant Austin.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Cleveland FBI and the Cleveland Division of Police. This case is being prosecuted by Assistant United States Attorneys Elizabeth M. Crook and Payum Doroodian.
Centerville man arrested for making online threats to commit school shootingRead the Press Release
DAYTON, Ohio – FBI agents have arrested a Centerville, Ohio, man on federal charges related to online threats to commit a mass shooting at a California school.
Alex Jaques, 21, has been charged federally with making interstate threats.
According to an affidavit filed in support of the criminal complaint, on Nov. 15, the FBI National Threat Operations Center received a tip about a video Jaques allegedly posted on YouTube.
In the video, Jaques allegedly uses multiple firearms to shoot a Chromebook computer and threatens to attack Washington Middle School in Salinas, California. The Chromebook has a Washington Middle School sticker affixed to it. The video shows an uzi-style weapon being discharged in rapid succession and multiple shots fired from a rifle-style weapon.
Law enforcement communicated with school officials in Salinas, California, and discovered that Jaques had been a student at a school within the same county.
Other videos on Jaques’s YouTube page allegedly depict the defendant driving while shooting a pistol at street signs.
While executing a search warrant at Jaques’s residence today, FBI agents seized eight firearms, including an uzi-style weapon.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorneys Christina Mahy is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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California Drug Courier Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Los Angeles, California woman was sentenced to 21 months in prison for conspiring to distribute kilograms of marijuana.
According to court documents, Ashley Yvonne Torres, 32, was a drug and money courier for a California-based drug-trafficking organization led by codefendant Anthony Robert Tirado. The organization distributed kilograms of marijuana from the Los Angeles area to Mobile and other cities throughout the United States and employed several couriers—juveniles among them—who ferried bulk amounts of marijuana to Mobile and other cities on commercial flights. In turn, the couriers, including Torres, transported hundreds of thousands of dollars in drug proceeds back to California for Tirado.
In October 2018, Torres transported kilograms of marijuana in two checked suitcases to a coconspirator at a hotel in Mobile and flew back to California with $8,000 in tow. In November 2018, narcotics agents caught Torres’s coconspirator in possession of 20 pounds of high grade marijuana, thousands of dollars in cash, and a handgun. Later, in June 2020, agents seized nearly $60,000 in bulk cash from Torres at the Louis Armstrong International Airport in New Orleans. The money, which Torres admitted to transporting to California in furtherance of drug trafficking and on Tirado’s behalf, had been hidden inside the lining portion of Torres’s checked luggage.
United States District Judge Terry F. Moorer ordered Torres to serve a three-year term of supervised release upon her release from prison, during which time she will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Torres to pay $100 in special assessments. Tirado is scheduled to be sentenced by Judge Moorer in January 2023.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Drug Enforcement Administration, the U.S. Marshals Service, the Mobile County Sheriff’s Office, and the Mobile Police Department investigated the case.
Assistant U.S. Attorneys Justin Roller and Deborah Griffin prosecuted the case on behalf of the United States.
The investigation and prosecution of this case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Calabasas Man Sentenced to 17½ Years in Prison for Scamming Cannabis Vaping Business Investors Out of More Than $35 MillionRead the Press Release
LOS ANGELES – A former UCLA decathlete who also competed with the Philippines national team was sentenced today to 210 months in federal prison for fraudulently raising more than $45 million from investors who were told their funds would be used to finance companies marketing cannabis vape pens.
David Joseph Bunevacz, 53, of Calabasas, was sentenced by United States District Judge Dale S. Fischer, who also ordered him to pay $35,267,851 in restitution. At today’s sentencing hearing, Judge Fischer noted that Bunevacz had “preyed on individuals who believed he was their friend” and that the “seriousness of [his] conduct cannot be captured in mere dollars and cents.”
Judge Fischer also found that Bunevacz continued to perpetrate his scheme even while serving probation for a state court conviction, concluding, “Not even a criminal conviction and the threat of jail convinced [Bunevacz] to become a law-abiding citizen.”
Bunevacz pleaded guilty on July 18 to one count of securities fraud and one count of wire fraud. He has been in federal custody since his arrest in this case on April 5.
Going back to 2010, Bunevacz created various business entities, with names such as CB Holding Group Corp. and Caesarbrutus LLC, that he claimed were involved in the cannabis industry and the sale of vape pens containing cannabis products such as CBD oil and THC.
Bunevacz falsely told at least one investor he had a longstanding relationship with a Chinese manufacturer of disposable vape pens and he obtained “raw pesticide-free oil” that was sent to a “lab that infuses the flavors into the oil with our proprietary custom process that renders the vape flavoring smooth and discrete,” according to court documents. Bunevacz also provided investors with forged documents – such as bank statements, invoices and purchase orders – to support his claims of the businesses’ success and the need for investor funds.
Instead of using the funds to finance business operations – and while some of his victims were suffering severe financial hardship – Bunevacz misappropriated the vast majority of the funds to pay for his own opulent lifestyle, including a luxurious house in Calabasas, Las Vegas trips, jewelry, designer handbags, a lavish birthday party for his daughter, and horses.
To create the false appearance that his companies were engaged in legitimate business activities, Bunevacz registered various shell companies, including several with names similar or identical to those of legitimate cannabis businesses. To conceal his control of these shell companies and the bank accounts associated with them, Bunevacz listed other individuals, including his stepdaughter, as the corporate officers of the shell companies.
Bunevacz’s blog touts his success as a former decathlete who competed for the Philippines, and his wife and daughter appeared in a reality television show. Despite Bunevacz’s promotion of his background, Bunevacz took efforts to conceal negative information from investors, such as his 2017 felony conviction for the unlawful sale of securities, according to an affidavit submitted in support of a criminal complaint in this case.
After one investor uncovered a lawsuit against Bunevacz, Bunevacz emailed a counterfeit version of the settlement agreement to falsely make it appear that he had been paid $325,000 as part of a settlement. In reality, it was Bunevacz who had agreed to pay $325,000 to settle the claim.
Operating through his cannabis companies, Bunevacz raised approximately $45,227,266 from more than 100 victim-investors, according to the government’s filing. Judge Fischer found that Bunevacz caused losses of approximately $35,267,851.
“The sense of violation, the assault on personal dignity, and the lasting trauma [Bunevacz] has caused are very much reminiscent of the harm typically associated with violent crimes,” prosecutors argued in a sentencing memorandum. “And, with well over a hundred victims, [Bunevacz] caused these harms at a scale rarely seen.”
The FBI, IRS Criminal Investigation, and the Los Angeles County Sheriff’s Department investigated this matter. The U.S. Securities and Exchange Commission provided substantial assistance.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section prosecuted this case.
Austin Felon Sentenced to 7 Years in Federal Prison for Manufacture and Sale of “Ghost Guns” and Dealing MethamphetamineRead the Press Release
NEW ALBANY –Christopher M. Caudill, 38, of Austin, Indiana, was sentenced to seven years in federal prison after pleading guilty to distribution of methamphetamine and possession of a firearm by a prohibited person.
According to court documents, between July 12, 2021, and February 17, 2022, Caudill sold drugs and firearms to a confidential informant on five separate occasions, illegally distributing a total of 41.9 grams of methamphetamine. In addition to his distribution of methamphetamine, Caudill sold the confidential informant a silencer, two privately made Glock-style 9mm pistols bearing no serial numbers, and an AR-stye 5.56m rife bearing no serial number. Caudill personally assembled the three firearms using parts and kits he purchased online.
These types of privately made firearms are untraceable and are referred to as “ghost guns.” Ghost guns are unserialized, privately made firearms increasingly recovered by law enforcement officers at crime scenes across the country. Because ghost guns lack the serial numbers marked on other firearms, they are impossible for law enforcement agencies to trace through the ATF’s National Tracing Center.
Caudill has a 2016 felony conviction in Scott County, Indiana, for possession of methamphetamine. Caudill is prohibited from possessing a firearm by federal law due to this prior felony.
“Deadly weapons in the hands of violent criminals and drug traffickers pose a profound danger to our communities,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Using parts and kits purchased online, this drug dealer and convicted felon manufactured and sold untraceable ‘ghost guns’—including an AR-style semiautomatic rifle and a silencer. The sentence imposed today demonstrates that our U.S. Attorney’s Office will work tirelessly with the ATF and all our law enforcement partners, including the Scott County Sheriff’s Office, to identify the most dangerous armed criminals, hold them accountable, and get them off our streets.”
“The illegal sale or transfer of privately made firearms presents a unique challenge for law enforcement,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “In this case, Caudill not only sold illegal drugs, he sold un-serialized, untraceable firearms and an unregistered silencer. When used by criminals, those firearms pose a safety threat to our community, and ATF will continue to work with our state and local partners to bring those trafficking these items to justice.”
The ATF Louisville Group IV investigated the case in conjunction with the Scott County Sheriff’s Office. The sentence was imposed by U.S. District Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Caudill be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller who prosecuted this case.
This case is being brought as a part of the Department of Justice’s National Ghost Gun Initiative. The initiative was launched in February 2022 in response to the proliferation of ghost guns in our communities, and the growing number of criminals who unlawfully use or possess these untraceable weapons. The Attorney General directed U.S. Attorney’s Offices to train a national cadre of prosecutors as experts to lead investigations and prosecutions of crimes involving ghost guns. These ghost gun coordinators will also share investigation and prosecution tools with other prosecutors and law enforcement officers. As part of the initiative, the U.S. Attorney’s Office for the Southern District of Indiana will focus its investigation and prosecution resources on combatting the illegal possession, use, and sale of ghost guns.