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5 October 2022
Federal jury convicts man for production of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that a federal jury on Sept. 28 returned a guilty verdict on Michael Bauldwin. The jury convicted Bauldwin, 43, of Albuquerque, on two counts of production of child pornography.
A federal grand jury indicted Bauldwin on Oct. 19, 2019.
On Oct. 9, 2019, officers from the Albuquerque Police Department (APD) responded to a report of suspected child pornography on Bauldwin’s electronic tablet. The responding officers notified APD’s Child Exploitation Detail (“CED”) and Crimes Against Children Unit (“CACU”). The tablet contained videos showing Bauldwin engaged in sexual acts with a minor victim.
Bauldwin will remain in custody pending sentencing, which has not been scheduled. He faces a minimum of 15 years and up to 30 years in prison as to each count and must register as a sex offender.
The FBI Albuquerque Field Office and APD investigated this case. This case was investigated as part of Project Safe Childhood (PSC) and the New Mexico Internet Crimes Against Children (ICAC) Task Force. Project Safe Childhood is a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
Assistant United States Attorneys Eva M. Fontanez and Sarah J. Mease are prosecuting the case.
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Federal Grand Jury Indicts Louisville Man for Bomb HoaxRead the Press Release
Louisville, KY – A federal grand jury in Louisville returned a single-count indictment yesterday charging a local man with violating a federal law prohibiting false information and hoaxes.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
According to court documents, on August 12, 2022, Jimmy Smith, Jr., 50, engaged in conduct with intent to convey false and misleading information under circumstances where such information may reasonably be believed and where such information indicates that an activity has taken, is taking, or will take place that would constitute a violation of federal law relating to a bomb.
If convicted, Smith faces a maximum sentence of five years in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
The FBI and Louisville Metro Police Department are investigating the case.
Assistant United States Attorney Jo E. Lawless is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fayetteville Woman Sentenced to 54 Months for Bank Fraud and ID TheftRead the Press Release
RALEIGH, N.C. – A Fayetteville woman was sentenced today to 54 months in prison for her role in a “card-cracking” scheme that caused a total loss of over $430,000 to several financial institutions. On June 8, 2022, Ericka Andrea Monique Johnson, 28, pled guilty to conspiracy to commit bank fraud and aggravated identity theft. In addition to her sentence, she will also be required to pay $62,118 in restitution.
According to court documents, Johnson and others engaged in a scheme colloquially known as “card-cracking,” where she made check deposits, often via Automated Teller Machines (ATMs), into checking accounts opened using the personal identifying information of unsuspecting victim account holders. After the deposits were made, Johnson made point of sale (POS) purchases and cash withdrawals against the deposit credit to obtain money during the “float” period before the financial institution recognized the fraud. The documents allege that between March 2018 and June 2020, Johnson and her co-conspirators withdrew and received over $430,000 from the Pentagon Federal Credit Union.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. U.S. Department of the Treasury - Office of Inspector General and the Fayetteville Police Department are investigating the case. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-334-BO-1.
FSM Citizen Sentenced for Attempted Illegal Reentry to the United StatesRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Clarence Poch a.k.a. J.M. Irons, age 43, a citizen of the Federated States of Micronesia (FSM) was sentenced on September 27, 2022, to nine months, 24 days imprisonment for Attempted Re-entry of Removed Alien, in violation of 8 U.S.C. § 1326. The Court also ordered one year of supervised release following imprisonment and a mandatory $100.00 special assessment fee.
Poch was deported from the United States to the FSM on January 11, 2012, after being convicted of felony domestic assault in Minnesota. He had no permission to return to the United States. Pock later changed his name to J.M. Irons and obtained a new passport, which enabled his travel from Chuuk to Guam. On November 14, 2021, while traveling to Saipan via Guam, federal immigration officials in Guam arrested Poch after determining his identity through biometric data.
“The use of biometric data enables immigration authorities to identify many individuals arriving at our ports of entry,” stated United States Attorney Anderson. “The manipulation of immigration documents will not defeat this technology. Such conduct will only increase our motivation to seek criminal enforcement.”
The investigation was conducted by Homeland Security Investigations and U.S. Customs and Border Protection. The case was prosecuted by Marivic P. David, Assistant United States Attorney in the District of Guam.
Fort Washakie Man Charged with Violent CrimeRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that LESLIE FRANK NOSEEP, III, age 20, of Fort Washakie, Wyoming, was charged with assault resulting in substantial bodily injury to a person under the age of 16 and assault with a dangerous weapon with intent to do bodily harm. Noseep appeared for an arraignment hearing on September 30, 2022, before Federal District Court Magistrate Judge Teresa McKee and pleaded not guilty to those charges. A trial has been set for December 5, 2022.
Noseep faces up to 15 years’ imprisonment with three years of supervised release, a $500,000 fine, and a $200 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Kerry Jacobson is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 22-cr-00100-SWS
Evansville Restaurant Operator Sentenced for Scheme to Employ Undocumented WorkersRead the Press Release
EVANSVILLE – Kent Dam, 55, of Evansville, Indiana, was sentenced to time served in federal court after pleading guilty to transporting and harboring undocumented workers and money laundering. Gracie’s Chinese Cuisine, which is operated by Dam and his wife, also pleaded guilty to unlawful employment of undocumented workers, and received two years’ probation and a $15,000 fine.
According to court documents, in June 2020, Homeland Security Investigations began an investigation into Dam and the operations at Gracie’s Chinese Cuisine as part of an ongoing multistate investigation into the smuggling, transporting, harboring and employment of undocumented workers. Agents were told that a human smuggler was facilitating the exploitation of undocumented laborers by delivering them to businesses. On multiple occasions, the smuggler drove the undocumented workers from another state to Gracie Chinese Cuisine’s and to two residences owned by Dam on West Wortman Road in Evansville. Dam and his wife personally paid the smuggler for delivering workers to the West Wortman Road residences.
During the investigation, surveillance of the restaurant and Dam’s two residences showed that Dam regularly drove from his primary residence to the West Wortman Road residences and picked up four to six people, then drove to Gracie Chinese Cuisine’s. At the restaurant, Dam and the workers exited the vehicle and entered through the back door. At the end of the day, Dam drove the workers from Gracie’s back to the residences on Wortman Road, before returning to his primary residence.
On October 21, 2020, the vehicle Dam was driving was stopped by officers for a traffic violation. Dam was driving with five passengers at the time. None of the passengers were lawfully present in the United States. One of the passengers was a citizen of El Salvador who had been previously deported, one passenger was a citizen of Indonesia who had entered on a visa, but the visa had been revoked, two of the passengers were citizens of Guatemala who had unlawfully entered the United States without inspection, and the final passenger was a citizen of Mexico who had unlawfully entered the United States without inspection.
All the passengers said they worked in the kitchen at Gracie’s and lived at the Wortman Road residence. Two individuals said that they had been working at the restaurant for 3 months, one said he had been there for 7.5 years, and the others fell somewhere in between. Some claimed that they paid Dam rent to live at the Wortman residence, others said they lived there for free. The workers stated that they were paid by Dam monthly, either by check or with an envelope of cash. One individual said that he was paid $800 per month, another said that he was paid $2,500 per month, and the others fell somewhere in between.
Additionally, the workers said that Dam did not ask them to complete the standard employment forms regarding citizenship and taxes. Some claimed that they did not even have to show Dam identification to get a job. Two of the workers stated that they were brought to Dam’s restaurant by a smuggler.
The worker who had been previously deported was detained and charged federally with unlawful re-entry into the United States. The others were released. Shortly after the traffic stop, Dam contacted a human smuggler and stated that he needed a worker.
“The defendant paid for smuggled, undocumented workers to exploit in furtherance of his own greed,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “This prosecution and sentence demonstrate that the Department of Justice and our law enforcement partners will work tirelessly to ensure that those who unlawfully exploit trafficked persons are held accountable.”
“This individual exploited undocumented workers to enrich himself,” said Special Agent in Charge Justin Campbell of IRS-CI’s Chicago Field Office. “Today’s sentencing is a critical reminder that there are consequences for human trafficking and money laundering.”
Homeland Security Investigations and Immigration and Customs Enforcement investigated the case in conjunction with IRS Criminal Investigation. The Indiana State Police provided invaluable assistance. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that Dam pay a $35,000 fine and that he forfeit to the United States his 2017 Toyota Tundra truck, which he used to transport the undocumented workers.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller who prosecuted this case.
Eleven Defendants Indicted for Obstructing a Reproductive Health Services Facility in TennesseeRead the Press Release
A federal indictment unsealed today charges 11 individuals with violations of the Freedom of Access to Clinic Entrances (FACE) Act.
Chester Gallagher, Heather Idoni, Calvin Zastrow, Coleman Boyd, Caroline Davis, Paul Vaughn, Dennis Green, Eva Edl, Eva Zastrow, James Zastrow and Paul Place were indicted for federal offenses in connection with an alleged reproductive health care clinic blockade in Mount Juliet, Tennessee, on March 5, 2021. Gallagher, Idoni, Calvin Zastrow, Boyd, Davis, Vaughn and Dennis Green were charged with a civil rights conspiracy. All 11 defendants were charged with a Freedom of Access to Clinic Entrances Act (FACE Act) offense.
The indictment returned by a federal grand jury alleges that Gallagher, Idoni, Calvin Zastrow, Boyd, Davis, Vaughn and Green engaged in a conspiracy to prevent the clinic from providing, and patients from receiving, reproductive health services. According to the indictment, as part of the conspiracy, Idoni, Calvin Zastrow, Boyd, Davis and Green traveled to Tennessee from other states to participate in a clinic blockade that was organized by Gallagher, Idoni and others.
The indictment alleges that, beginning in February 2021, Gallagher utilized social media to promote a series of anti-abortion events scheduled for March 4-7, 2021, in the Nashville area. Other co-conspirators then utilized Facebook to coordinate travel and logistics and to identify other participants for the blockade. On March 4, 2021, Boyd and Gallagher advertised the blockade of the Carafem Health Center Clinic, in Mount Juliet, Tennessee, which was planned for the following day. In his social media post, Gallagher referred to the blockade as a “rescue.” Boyd also began a Facebook livestream broadcast of the clinic blockade at 7:45 a.m. on March 5, 2021. This livestream broadcast was titled, in part, “Mount Juliet, Tennessee, Rescue March 5, 2021,” and livestreamed the blockade event as his coconspirators and others blocked the clinic’s entry doors and prevented a patient and an employee from entering. The livestream also broadcast members of the group attempting to engage a patient and her companion as Boyd told his livestream audience that the patient was a “mom coming to kill her baby.”
The indictment further alleges that on March 5, 2021, the 11 individuals, aided and abetted by one another, used force and physical obstruction to injure, intimidate and interfere with employees of the clinic and a patient who was seeking reproductive health services.
The indictment also alleges that all 11 defendants violated the FACE Act by using physical obstruction to intimidate and interfere with the clinic’s employees and a patient, because the clinic was providing, and the patient sought reproductive health services. All defendants will have appearances scheduled in U.S. District Court in Nashville at a later date.
If convicted of the offenses, the seven conspiracy defendants each face up to a maximum of 11 years in prison, three years of supervised release and fines of up to $350,000. The remaining five defendants face a year in prison, one year of supervised release and a fine of up to $10,000.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee made the announcement.
The FBI investigated the case. Trial attorneys of the Justice Department’s Civil Rights Division and the Civil Rights Coordinator for the U.S. Attorney’s Office for the Middle District of Tennessee are prosecuting the case.
Anyone who has information about incidents of violence, threats and obstruction that target a patient or provider of reproductive health services, or damage and destruction of reproductive health care facilities, should report that information to the FBI at www.tips.fbi.gov. For more information about clinic violence, and the Department of Justice’s efforts to enforce FACE Act violations, please visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.
The charges contained in an indictment are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eleven Charged with FACE Act Violations Stemming from 2021 Blockade OF Mount Juliet Reproductive Health ClinicRead the Press Release
NASHVILLE – A federal indictment unsealed today charges eleven individuals with violations of the Freedom of Access to Clinic Entrances (FACE) Act, announced U.S. Attorney Mark H. Wildasin, for the Middle District of Tennessee and Kristen M. Clarke, Assistant Attorney General for the Civil Rights Division.
The indictment, returned on Monday by a federal grand jury sitting in Nashville, charges the following seven individuals with conspiracy against rights secured by the FACE Act, and committing FACE Act violations:
Chester Gallagher, 73, of Lebanon, Tennessee; Heather Idoni, 58; Calvin Zastrow, 57; and Caroline Davis, 24; all of Michigan; Coleman Boyd, 51, of Bolton, Mississippi; Dennis Green, 56, of Cumberland, Virginia; and Paul Vaughn, 55, of Centerville, Tennessee.
The indictment also charges the following individuals with committing FACE Act violations: Eva Edl, 87, of Aiken South Carolina; Eva Zastro, 24, of Dover, Arkansas; James Zastro, 25, of Eldon, Missouri; and Paul Place, 24, of Centerville, Tennessee. All defendants will have appearances scheduled in U.S. District Court in Nashville at a later date.
The indictment alleges that, beginning in February 2021, Chester Gallagher utilized social media to promote a series of anti-abortion events scheduled for March 4-7, 2021, in the Nashville area. Other co-conspirators then utilized Facebook to coordinate travel and logistics and to identify other participants for the blockade. On March 4, 2021, Coleman Boyd and Chester Gallager advertised the blockade of the Carafem Health Center Clinic, in Mount Juliet, Tennessee, which was planned for the following day. In his social media post, Gallagher referred to the blockade as a “rescue.” Boyd also began a Facebook livestream broadcast of the clinic blockade at 7:45 a.m. on March 5, 2021. This livestream broadcast was titled, in part, “Mt. Juliet, TN Rescue March 5, 2021,” and livestreamed the blockade event as his coconspirators and others blocked the clinic’s entry doors and prevented a patient and an employee from entering. The livestream also broadcast members of the group attempting to engage a patient and her companion as Boyd told his livestream audience that the patient was a “mom coming to kill her baby.”
The indictment further alleges that on March 5, 2021, the 11 individuals, aided and abetted by one another, used force and physical obstruction to injure, intimidate, and interfere with employees of the clinic and a patient who was seeking reproductive health services.
If convicted, those charged with conspiracy face up to 11 years in prison and fines of up to $250,000. Others face up to one year in prison for the misdemeanor offense and fines of up to $10,000.
This case was investigated by the FBI and is being prosecuted by the Civil Rights Coordinator of the U.S. Attorney’s Office and trial Attorneys of the Department’s Civil Rights Division.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Eastern District of Louisiana Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
NEW ORLEANS – The Justice Department announced on October 4, 2022 the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Elder fraud schemes unfairly target elderly, disabled and other vulnerable consumers, ensnaring them into fraudulent ventures with wide reaching consequences and excessive losses, which have a profound effect on our community and nation. With the continued cooperation from our investigative partners, we will hold the perpetrators of elder fraud schemes accountable for their crimes. Our office reminds seniors and their caregivers to be vigilant for fraudulent schemes and, if victimized, to contact law enforcement,” stated U.S. Attorney Duane A. Evans.
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. For example, the EDLA prosecuted the following Elder Fraud matters:
Claudua Antillon Zahuita, age 38, and Sergio Leon Kuri, age 40, both residents and citizens of Mexico, were sentenced to prison on September 29, 2021 after they each pleaded guilty to one count of conspiracy to commit wire fraud. Zahuita received 48 months, while Kuri received 60 months. As part of the elaborate scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. The defendants misrepresented the existence of a buyer for their timeshare and solicited money from the victims to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with electronic wire transfers from banking institutions within the United States to Mexican banks. There were no interested buyers, the closings did not occur, and the timeshares were not resold. Instead, the conspirators simply pocketed the advanced fees. Of the U.S. victims, 40 were age 60 and older and the total estimated loss is at least $20,000,000; and
Karen Farrell Tigler, of Harvey, Louisiana, pled guilty on May 11, 2022 to Bank Fraud and Making and Subscribing False Tax Returns. According to court documents, Tigler was employed as banker with a local bank and used her position to embezzle approximately $349, 556 from and elderly client’s account. Tigler faces a maximum term of thirty (30) years imprisonment and/or a fine of $1,000,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense; and
Acdane Campbell, age 25, a resident of Jamaica, was sentenced on May 26, 2022 to serve 10 months in prison after previously pleading guilty to a one count indictment for Conspiracy to Commit Mail and Wire Fraud. According to court records, from in or around August 2016, Campbell, and others, conspired to obtain money unlawfully by falsely informing elderly victims that they had won a lottery, sweepstakes, or car. The unidentified co-conspirators telephoned the victims, promising them that they would receive their winnings if they first paid taxes and fees.
As an additional part of the EDLA’s elder fraud initiative, it has conducted outreach to both the community and industry to raise awareness of the ever-present threats of exploitative scams and the victimization they unleash. This year, our office also participated in Elder Justice presentations at local Retirement Communities that focused on the identification and prevention of financial, physical, and emotional crimes against senior populations.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million because of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult, and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
East Texas man sentenced for smuggling 98 in sealed trailerRead the Press Release
LAREDO, Texas – A 46-year-old resident of Montalba has been ordered to federal prison following his conviction of conspiracy to transport non-U.S. citizens, announced U.S. Attorney Jennifer B. Lowery.
Othell Corneilous Brown pleaded guilty June 28.
Today, U.S. District Judge Diana Saldaña ordered Brown to serve 41 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional testimony that detailed Brown’s prior training as a truck driver and whether it assisted him in the smuggling attempt. In handing down the sentence, the court noted Brown was extremely lucky that nobody was injured or killed during the smuggling attempt as it would have resulted in a much higher sentence.
On April 29, Brown drove a tractor trailer into the Border Patrol (BP) checkpoint located on I-35. Soon after, a K-9 alerted to authorities to the presence of humans or narcotics who then referred the vehicle to secondary inspection. At that time, law enforcement had to use a metal grinder to unseal the doors and discovered 98 undocumented individuals inside the refrigerated trailer.
Brown admitted he had transported several loads of people for the same organizer on previous occasions.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the BP. Assistant U.S. Attorney Paul A. Harrison prosecuted the case.
EDVA Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
ALEXANDRIA, Va. – The Justice Department announced yesterday the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. yesterday, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“EDVA is committed to pursuing justice on behalf of vulnerable members of our community, especially those impacted by elder fraud schemes,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Criminals who prey on the elderly and rob innocent victims of their lifelong savings and hard-earned retirement funds leave devastating emotional and financial trauma. This office will continue to work closely with our partners to investigate, apprehend, and prosecute perpetrators of these harmful scams.”
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
This past year, the Eastern District of Virginia has continued to pursue justice for elders in a wide range of cases, including:
- U.S. v. Mable Jones, 3:21-cr-30 - The former owner of a Richmond-based assisted living facility that served primarily elderly and incapacitated adults was sentenced to 2 years in prison for health care fraud after diverting over $800,000 in federal and state benefits that were intended to pay for the care of the facility’s residents. Jones used the residents’ benefits to satisfy her personal debts, including her mortgage and bankruptcy payments, and to fund her personal travel, retail purchases, and gambling expenses, including at casinos in Atlantic City, New Jersey, and Las Vegas, Nevada. Jones’s diversion of resident benefits led to significant and persistent deficiencies in the facilities, care, and services provided to her facility’s residents, including deficiencies that endangered residents’ health and safety.
- U.S. v. Bank et al, 2:19-cr-47 - The defendants executed a nationwide investment scheme involving fraudulent wireless spectrum and dental franchise investments. The scheme, operated out of California, Arizona, Florida, Idaho, and Hampton Roads, among other locations across the country, deceived hundreds of unsuspecting investors, most of whom were at or near retirement age. As a result of this investment fraud scheme, the victims suffered losses in excess of $20 million. Ten defendants were prosecuted and sentenced to terms ranging from 5 to 35 years.
- U.S. v. Prasad, 1:22-cr-40 - The defendant conspired with several other individuals primarily based at a call center in India to carry out a tech support scheme that affected mostly elderly victims. From April 2016 through September 2021, more than 1,300 individuals were defrauded. The victims suffered losses totaling more than $1.6 million. The defendant was sentenced to 3 years’ imprisonment.
- U.S. v. Garuba, 1:20-cr-201 - The defendant engaged in financial transactions with illegal proceeds as part of a romance fraud scheme against mostly elderly victims. He received large wire transfers from a number of senior citizens living throughout the United States who were duped into believing that they were sending money at the request of and for the benefit of romantic partners they met through online dating sites. In total, Garuba transferred approximately 15% of the nearly $2.9 million that the fraudsters obtained from the victims. The defendant was sentenced to 21 months’ imprisonment.
As part of the Eastern District of Virginia’s elder fraud efforts, it engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. This year, our District provided training on identifying, investigating, and prosecuting romance scams to state and local law enforcement and social services partners to help combat and prevent affinity frauds.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat the largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams as “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-866 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise yesterday’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Distribution of Methamphetamine Sends Many, Louisiana Man to Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced the sentencing of a Many, Louisiana man in federal court today. United States District Judge Donald E. Walter sentenced Damien Medlock, 36, to 151 months in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine. Medlock was indicted in June 2021 and pleaded guilty to the charge on May 16, 2022.
The charge is the result of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed “Pick Your Battles” by law enforcements agents with the Federal Bureau of Investigation (FBI) and the Sabine Parish Narcotics Task Force in the Sabine Parish area. This incident occurred on May 31, 2021, when agents learned through their investigation that Medlock sold methamphetamine to an individual. Following the sale of the methamphetamine, law enforcement agents arrested Medlock.
A search warrant was obtained for his residence in Many and later that day agents executed that search warrant. During their search of the residence, agents discovered approximately 1,286 grams of narcotics in various containers in the kitchen, along with three digital scales, baggies and a drug ledger that was found in the living area. The narcotics were taken to the North Louisiana Criminalistics Laboratory and tested and confirmed to contain methamphetamine with a total weight of 1,287.8 grams.
The case was investigated by the FBI and Sabine Parish Narcotics Task Force and prosecuted by Assistant U.S. Attorney J. Aaron Crawford. This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Defendant Sentenced to 18 Months in Prison for Sabotage of NYPD Vehicle and COVID-19 Related FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Jeremy Trapp was sentenced by United States District Judge William F. Kuntz II to 18 months in prison for cutting a brake line of a New York City Police Department (NYPD) van and 18 months in prison for committing wire fraud in connection with the COVID-19 pandemic-related Economic Injury Disaster Loan program. The sentences will run concurrently. As part of the sentence, the Court ordered Trapp to pay $9,722.88 in restitution to the United States Small Business Administration.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, NYPD, announced the sentences.
“Today’s sentence shows that there are consequences for those who seek to harm our law enforcement officers and steal from our public assistance programs,” stated United States Attorney Peace. “In cutting a brake line on an NYPD vehicle, Jeremy Trapp showed a blatant disregard for the lives of police officers and residents of New York City who could have been killed or seriously injured by a runaway vehicle without brakes.”
“Jeremy Trapp’s contempt for the law is first demonstrated by his stealing money meant for people adversely impacted by the COVID-19 pandemic, and is then exceeded by his disdain for those who enforce the law,” stated NYPD Commissioner Sewell. “Cutting the brake lines of an NYPD vehicle would not only threaten the safety of police officers – it would endanger the lives of anyone in that vehicle’s path. Any attempt to rationalize these actions as a protest against the government or law enforcement is the height of hypocrisy. I want to thank the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, and the NYPD’s Intelligence Bureau for their outstanding work on this case.”
As set forth in the court filings and today’s proceeding, on July 17, 2020, Trapp crawled under a marked NYPD van parked near Fourth Avenue and 42nd Street in Sunset Park, Brooklyn, and partially severed a line that is part of the NYPD van’s anti-lock braking system, which is similar in appearance to, and in the same location as, the NYPD vehicle’s main brake line. A malfunctioning anti-lock braking system would adversely impact a driver’s ability to stop and maintain control of the van in an emergency.
Additionally, in June 2020, Trapp submitted a fraudulent Economic Injury Disaster Loan program (EIDL) loan and grant application. EIDL provides qualifying small businesses with low-interest loans. The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic.
In the application, Trapp claimed that he was the sole proprietor of a car wash business located at his home address in Brooklyn, a multi-unit residential building. Trapp further represented that he employed ten individuals and that his gross revenue for the 12 months prior to the COVID-19 pandemic was $150,000. Based on Trapp’s false representations, the Small Business Administration approved a $42,500 loan and $10,000 grant to Trapp, and these funds were deposited into Trapp’s bank account.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Francisco J. Navarro and Sara K. Winik are in charge of the prosecution.
The Defendant:
JEREMY TRAPP
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket Nos. 20-CR-308 and 20-CR-454 (WFK)
Denver Man Arraigned on Fentanyl ChargeRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that FLOYD GILBERT VIGIL, 40, of Denver, Colorado, was charged for possession with intent to distribute more than 40 grams of fentanyl. Vigil appeared before United States District Court Judge Alan B. Johnson, on September 28, 2022, for an arraignment hearing and pleaded not guilty to the charges. A trial has been set for November 28, 2022. The defendant was remanded to the custody of the United States Marshals Service.
Vigil faces no less than five years and up to 40 years’ imprisonment, no less than four years to life of supervised release, up to a $3 million fine and a $100 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Drug Enforcement Administration. The case is being prosecuted by Jonathan C. Coppom.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No: 22-CR-00108-ABJ
D.C. Man Pleads Guilty to Carrying Out Conspiracy to Impersonate Federal Law Enforcement OfficerRead the Press Release
WASHINGTON – A District of Columbia man pleaded guilty today to charges stemming from a scheme in which he pretended to be a federal law enforcement officer for a range of purposes, including to maintain a series of apartments in which he then failed to pay rent. He also admitted carrying out a bank fraud scheme in which he obtained more than $1 million and used his false law enforcement credentials to pressure individuals recruited to the scheme.
Haider Ali, 36, pleaded guilty in the U.S. District Court for the District of Columbia to a superseding information charging him with one count each of conspiracy and bank fraud, both federal offenses, and unlawful possession of a large-capacity ammunition feeding device, a District of Columbia offense. In the plea agreement, the parties stated that they will jointly recommend a prison sentence of 63 to 78 months. The Honorable Colleen Kollar-Kotelly scheduled sentencing for Feb. 24, 2023.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, Dr. Joseph V. Cuffari, Inspector General of the U.S. Department of Homeland Security, and Damon E. Wood, Inspector in Charge, Washington Division, U.S. Postal Inspection Service.
According to plea documents, Ali and a co-conspirator, Arian Taherzadeh, 40, also of Washington, D.C., operated a business called United States Special Police LLC (USSP), which was described as a private law enforcement, investigative, and protective service based in Washington. The two men represented themselves to law enforcement as investigators and/or special agents and that their unit was part of Department of Homeland Security (DHS). The company was not associated in any way with the United States government or the District of Columbia and had never done business with the federal or D.C. governments.
As the scheme unfolded, Ali falsely claimed at various times that he was a member of the U.S. Department of Homeland Security and/or the U.S. Secret Service. He also falsely claimed that he participated in the capture of the wife of Joaquin “El Chapo” Guzman, that his family had a royal bloodline, and that he had a connection to a senior official in the Pakistani Intelligence Service. Taherzadeh, meanwhile, falsely claimed to be, among other things, a Special Agent with the Department of Homeland Security, a member of a multi-jurisdictional federal task force, a former United States Air Marshal, and a former Army Ranger.
Both men used these false claims to recruit others to join their “task force” or “unit,” which these individuals believed to be part of DHS and federal law enforcement. In furtherance of the scheme, Ali and Taherzadeh ingratiated themselves with employees of the U.S. Secret Service because it provided them with cover and aided in their scheme.
Ali and Taherzadeh used their assumed law enforcement personas and the business to maintain leases for multiple apartments and parking spaces for a supposed law enforcement operation at a luxury apartment complex in Southeast Washington. These units included a penthouse where Ali and Taherzadeh possessed, among other things, a Glock handgun registered to Ali that was loaded with a large-capacity ammunition feeding device, surveillance equipment, law enforcement tactical gear and a machine capable of programming Personal Identification Verification (PIV) cards used to create false credentials. They also used their false identification with law enforcement to obtain security footage in the building as well as a list of the building’s residents as well as their apartment numbers and contact information.
Throughout their tenancy, no rent was paid on the leased apartments or parking garage. This resulted in a loss to the building of $306,987 and to the garage of $7,854.
Additionally, according to the plea documents, beginning as early as May 2017 and continuing through March 2021, Ali engaged in a bank fraud scheme in which he generated more than $1 million in gross receipts from one or more financial institutions. He used bank accounts that he and others maintained and controlled to falsely and fraudulently execute debit and credit card transactions.
Ali and Taherzadeh were arrested on April 6, 2022. Taherzadeh pleaded guilty on Aug. 1, 2022, to a federal conspiracy offense and two District of Columbia offenses: unlawful possession of a large-capacity ammunition feeding device and voyeurism. A sentencing date for Taherzadeh has not yet been set.
This case is being investigated by the FBI’s Washington Field Office, the U.S. Department of Homeland Security Office of the Inspector General, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and Joshua S. Rothstein of the Fraud, Public Corruption, and Civil Rights Section.
Valuable assistance has been provided by Assistant U.S. Attorney Christopher Tortorice and Paralegal Specialists Quiana Dunn-Gordon, and Lisa Abbe and former Paralegal Specialist Chad Byron of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorneys Kathleen Campbell and Evan Turgeon of the Department of Justice’s National Security Division.
Collin County Man Guilty of Multiple Federal Crimes Related to Carrollton MurderRead the Press Release
SHERMAN, Texas – An Allen man has been found guilty of multiple federal violations related to a fraud scheme that included the murder of a Carrollton man, announced Eastern District of Texas U.S. Attorney Brit Featherston today.
Keith Todd Ashley, 50, was found guilty by a jury of wire fraud, mail fraud, carrying a firearm in relation to a crime of violence and bank fraud. The verdict was reached today following a week-long trial before U.S. District Judge Amos L. Mazzant.
According to information presented at trial, beginning in 2016, Ashley, a registered nurse who also began working as a financial advisor and life insurance agent, started stealing money from his clients. Ashley promised his clients he would invest their money in financial products but instead used the funds to pay other clients, to keep his struggling brewery in business, to pay his personal bills and to fund a lavish lifestyle. In May 2016, Ashley began stealing investment funds from a Carrollton man. This scheme included transferring the client’s money into his personal accounts and changing the beneficiary of the man’s life insurance to a trust controlled by Ashley. The scheme eventually resulted in the Feb. 19, 2020, murder of the client, which Ashley attempted to stage as a suicide. Even after the client was killed, Ashley went through elaborate steps to collect on the life insurance policy, transfer funds from the victim’s bank account to himself, and attempt to obtain a copy of the victim’s autopsy report. Ashley was indicted by a federal grand jury on Nov. 12, 2020, and has been charged with various federal violations, including wire fraud, mail fraud and firearms violations.
“Ashley went to great lengths to defraud clients that trusted him,” said U.S. Attorney Brit Featherston. “By plotting and causing the death of one client to steal his money, Ashley committed the ultimate betrayal of trust and decency and the jury saw Ashley for who he is, a con-artist who would go so far as murder to get what he wanted. Incredible work by investigators and prosecutors, as well as coordination between the Feds and the State have succeeded in getting this depraved criminal off the street.”
“Keith Ashley’s desire for wealth and comfort outweighed his ability to uphold his professional responsibility in both the medical and financial fields. He failed to act in the best interests of his clients and instead robbed them of their financial security, in this specific instance, he also ended a life,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “We will continue to seek justice for victims of these deceitful schemes, and I am grateful for the collaborative and investigative work performed by local and federal law enforcement on this case.”
Ashley faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation – Frisco Resident Agency, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Dallas County District Attorney’s Office, and the Carrollton Police Department. This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Jay Combs and Special Assistant U.S. Attorney Jason Fine.
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Chief Engineer of Towing Vessel Admits Negligently Discharging Oil into Kill Van KullRead the Press Release
NEWARK, N.J. – The chief engineer of a towing vessel today admitted his role in negligently discharging marine diesel fuel oil into the Kill Van Kull, U.S. Attorney Philip R. Sellinger announced.
Michael Brown, 67, of Kingston, Tennessee, pleaded guilty before U.S. Magistrate Judge Leda D. Wettre to an information charging him with violating the Clean Water Act by negligently discharging marine diesel fuel oil while refueling his towing vessel at the International Matex Tank Terminal’s Mobil Pier in Bayonne, New Jersey.
According to documents filed in this case and statements made in court:
On Sept. 12, 2016, Brown failed to exercise due care in conducting the transfer of fuel oil to the towing vessel, resulting in the discharge of hundreds of gallons of fuel oil into the Kill Van Kull. Brown also admitted that, in response to questions by the U.S. Coast Guard, he failed to disclose that the origin of the spill was the towing vessel.
The Clean Water Act, as amended by the Oil Pollution Act of 1990, makes it a crime for a person to negligently discharge oil into or upon the navigable waters of the United States in such quantities as may be harmful. The Kill Van Kull, a tidal straight that connects Newark Bay with Upper New York Bay, is a navigable water of the United States.
Brown has agreed, as part of his plea agreement, to pay a fine of $4,000 to the Oil Spill Liability Trust Fund.
The charge to which Brown pleaded guilty carries a maximum penalty of one year imprisonment and a maximum fine equal to the greatest of $100,000 or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for Feb. 7, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Coast Guard Investigative Service under the direction of Assistant Special Agent in Charge Damon Youmans with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Economic Crimes Unit.
Chicago Man Indicted on Fraud Charges Related to Pandemic Unemployment BenefitsRead the Press Release
PITTSBURGH, PA – A former resident of Chicago, IL, has been indicted by a federal grand jury in Pittsburgh, PA on a charges of mail fraud, wire fraud, and aggravated identity theft, United States Attorney Cindy K. Chung announced today.
The seven-count Superseding Indictment, returned on Oct. 4, named Christian Matthews, 33, as the sole defendant.
According to the Superseding Indictment, Matthews fraudulently obtained personal identifying information belonging to other people and used it, without permission, to file claims for pandemic-related unemployment benefits in several states. The resulting benefits were sent via the United States mail and interstate commercial carriers to locations, including an office building in Pittsburgh, where Matthews could retrieve and use them.
The law provides for a maximum total sentence of 22 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The government is requesting detention.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Department of Labor Office of the Inspector General, United States Department of Homeland Security Investigations, United States Postal Inspection Service, and Findlay Township Police Department conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cherokee Man Pleads Guilty to Meth PossessionRead the Press Release
A man who possessed with intent to distribute methamphetamine pled guilty on October 3, 2022, in federal court in Sioux City.
Jeffery Linn, 54, from Cherokee, Iowa, was convicted of possession of methamphetamine with the intent to distribute.
At the plea hearing, Linn admitted that on December 6, 2021, law enforcement conducted a traffic stop of the vehicle he was operating. During a search of the vehicle, law enforcement seized approximately 10 ounces of methamphetamine which Linn intended to help distribute to others. Evidence also showed that during the traffic stop, Linn attempted to swallow the meth to avoid arrest.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Linn remains in custody of the United States Marshal pending sentencing. Linn faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Iowa Division of Narcotics Enforcement, United States Postal Inspectors, Homeland Security Investigations, Iowa DCI Laboratory, and Cherokee Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4002.
Follow us on Twitter @USAO_NDIA.
California Man Sentenced to Prison for Multimillion Dollar Tax Fraud Scheme Involving Professional Athletes and PPP Loan FraudRead the Press Release
A California man was sentenced today to 10 years in prison for conspiring with others in schemes to defraud the Internal Revenue Service (IRS) and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
According to court documents and statements made in court, Quin Ngoc Rudin, 55, a convicted felon, was the Secretary, Director and Chief Financial Officer of Mana Tax Services, a tax preparation business in the Los Angeles area. Rudin engaged in a conspiracy to commit two fraud schemes using Mana Tax while on supervise release.
First, Rudin conspired with his brother, Thanh Rudin, 59, of Rosemead, California, as well as Seir Havana, 46, of North Hollywood, California, and others to prepare and file with the IRS a series of false income tax returns on behalf of at least nine professional athletes. The false tax returns reported fictitious business and personal losses to generate refunds the athletes were not entitled to receive. Rudin also filed amended tax returns for most of the athletes for prior years to correct what he falsely characterized as “errors” made by their previous accountants. Mana Tax charged the athletes a fee of 30% of the resulting refunds issued by the IRS. Rudin’s tax fraud scheme caused a total tax loss of more than $19 million.
Second, Rudin and his co-conspirators, also including Milton Estrada, 49, of Fullerton, California, at Mana Tax also prepared and submitted false applications for PPP loans on behalf of small businesses, shell companies, and other business entities they controlled. Rudin and his co-conspirators prepared fraudulent PPP loan applications for these firms in exchange for a fee of 30% of the resulting loan. The co-conspirators submitted fabricated tax returns to support the PPP loan applications, and some of the business owners never saw their loan applications before Mana Tax filed them. To conceal the 30% fee from the government, Rudin and his co-conspirators directed the businesses to pay the co-conspirators with cashier’s checks and to note on the memo lines that the checks were related to payroll. To obtain fraudulent PPP loans on behalf of shell companies and other business entities they controlled, Rudin and the co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the applications. Some of the businesses were not eligible for any PPP loan funds at all because they did not have any payroll expenses. The fraud loss to the U.S. government stemming from the PPP scheme exceeded $43 million.
Rudin committed these crimes while he was on supervised release for another fraud scheme in California. He pleaded guilty on May 13 to one count of conspiracy to defraud the United States and to commit wire fraud, as well as to one count of wire fraud. Three other co-conspirators, including Rudin’s brother, Thanh Rudin, Seir Havana and Milton Estrada also pleaded guilty as part of this conspiracy. Thanh Rudin and Havana are scheduled to be sentenced on Nov. 9. Milton Estrada is to be sentenced on Dec. 21.
"I commend the hard work of the Eastern District of Virginia, the Tax Division, IRS Criminal Investigation and the Federal Bureau of Investigation,” said Kevin Chambers, Director of COVID-19 Fraud Enforcement. “The department will continue to aggressively pursue all who exploited the pandemic as a means to enrich themselves at the expense of those for whom pandemic relief funds were intended.”
“Quin Ngoc Rudin defrauded the Treasury of tens of millions of dollars by securing grossly inflated tax refunds and fraudulently obtaining COVID relief loans with fabricated tax returns,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Tax preparers should know that whether their clients are professional athletes or the neighbor down the block, they need to do their jobs honestly and professionally, or face the consequences.”
“Between the complex and calculated tax fraud scheme and the PPP fraud to steal funds designated to provide relief to Americans suffering from the pandemic, this defendant’s crimes resulted in a staggering loss in the tens of millions,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Today’s sentence demonstrates the swift and exacting justice that awaits anyone who attempts to steal funds from the U.S. Government and taxpayers. This result is in no small part due to the diligence of the investigative agents on this case, who reacted decisively to identify the scheme and recover significant portions of defrauded taxpayer funds.”
“Today, Quin Ngoc Rudin was sentenced for his fraudulent scheme to exploit a program designed to provide to those in need during the COVID-19 pandemic. It is unacceptable for anyone to prioritize their own greed above others and steal funds from the American taxpayers. Rudin and his co-conspirators spent their fraudulently obtained funds to further their scheme, including traveling on private jets to portray themselves as successful business owners,” said Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal Division. “The FBI and our partners will work to bring those to justice who attempt to enrich themselves at the expense of others and take advantage of government programs designed to aid businesses, people, and our economy during a time of need.”
“Honest taxpayers are fed up with crooks like Quin Rudin who defrauded a government program meant to help those in need to line their pockets while skirting their tax obligations," said Special Agent in Charge Darrell Waldon of the IRS-Criminal Investigation Washington, D.C. Field Office. "Rudin and his conspirators devised a scheme to steal from a CARES Act loan program to fund their lifestyles. His actions not only caused negative ramifications to those financially connected to him, but also the honest taxpayer when he and his conspirators committed significant tax fraud violations.”
The United States recovered over $15 million of the fraud proceeds. Rudin’s restitution amount will be ordered at a later date.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal Division; and Special Agent in Charge Darrell J. Waldon of the Washington, D.C. Field Office, IRS-Criminal Investigation made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
The U.S. Attorney’s Office for the Central District of California and U.S. Small Business Administration provided assistance with the investigation.
Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen for the Eastern District of Virginia and Assistant Chief David Zisserson of the Tax Division prosecuted the case.
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-cr-46.
California Man Sentenced to Prison for Multimillion Dollar Tax Fraud Scheme Involving Professional Athletes and PPP Loan FraudRead the Press Release
ALEXANDRIA, Va. – A California man was sentenced today to 10 years in prison for conspiring with others in schemes to defraud the Internal Revenue Service (IRS) and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
According to court documents and statements made in court, Quin Ngoc Rudin, 55, a convicted felon, was the Secretary, Director and Chief Financial Officer of Mana Tax Services, a tax preparation business in the Los Angeles area. Rudin engaged in a conspiracy to commit two fraud schemes using Mana Tax while on supervised release.
First, Rudin conspired with his brother, Thanh Rudin, 59, of Rosemead, California, as well as Seir Havana, 46, of North Hollywood, California, and others, to prepare and file with the IRS a series of false income tax returns on behalf of at least nine professional athletes. The false tax returns reported fictitious business and personal losses to generate refunds the athletes were not entitled to receive. Rudin also filed amended tax returns for most of the athletes for prior years to correct what he falsely characterized as “errors” made by their previous accountants. Mana Tax charged the athletes a fee of 30% of the resulting refunds issued by the IRS. Rudin’s tax fraud scheme caused a total tax loss of more than $19 million.
Second, Rudin and his co-conspirators, also including Milton Estrada, 49, of Fullerton, California, at Mana Tax also prepared and submitted false applications for PPP loans on behalf of small businesses, shell companies, and other business entities they controlled. Rudin and his co-conspirators prepared fraudulent PPP loan applications for these firms in exchange for a fee of 30% of the resulting loan. The co-conspirators submitted fabricated tax returns to support the PPP loan applications, and some of the business owners never saw their loan applications before Mana Tax filed them. To conceal the 30% fee from the government, Rudin and his co-conspirators directed the businesses to pay the co-conspirators with cashier’s checks and to note on the memo lines that the checks were related to payroll. To obtain fraudulent PPP loans on behalf of shell companies and other business entities they controlled, Rudin and the co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the applications. Some of the businesses were not eligible for any PPP loan funds at all because they did not have any payroll expenses. The fraud loss to the U.S. government stemming from the PPP scheme exceeded $43 million.
Rudin committed these crimes while he was on supervised release for another fraud scheme in California. He pleaded guilty on May 13 to one count of conspiracy to defraud the United States and to commit wire fraud, as well as to one count of wire fraud. Three other co-conspirators, including Rudin’s brother, Thanh Rudin, Seir Havana, and Milton Estrada also pleaded guilty as part of this conspiracy. Thanh Rudin and Havana are scheduled to be sentenced on November 9. Milton Estrada is to be sentenced on December 21.
“Between the complex and calculated tax fraud scheme and the PPP fraud to steal funds designated to provide relief to Americans suffering from the pandemic, this defendant’s crimes resulted in a staggering loss in the tens of millions,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Today’s sentence demonstrates the swift and exacting justice that awaits anyone who attempts to steal funds from the U.S. Government and taxpayers. This result is in no small part due to the diligence of the investigative agents on this case, who reacted decisively to identify the scheme and recover significant portions of defrauded taxpayer funds.”
“I commend the hard work of the Eastern District of Virginia, the Tax Division, IRS Criminal Investigation, and the Federal Bureau of Investigation,” said Kevin Chambers, Director of COVID-19 Fraud Enforcement. “The Department will continue to aggressively pursue all who exploited the pandemic as a means to enrich themselves at the expense of those for whom pandemic relief funds were intended.”
“Quin Ngoc Rudin defrauded the Treasury of tens of millions of dollars by securing grossly inflated tax refunds and fraudulently obtaining COVID relief loans with fabricated tax returns,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Tax preparers should know that whether their clients are professional athletes or the neighbor down the block, they need to do their jobs honestly and professionally, or face the consequences.”
“Today, Quin Ngoc Rudin was sentenced for his fraudulent scheme to exploit a program designed to provide to those in need during the COVID-19 pandemic. It is unacceptable for anyone to prioritize their own greed above others and steal funds from the American taxpayers. Rudin and his co-conspirators spent their fraudulently obtained funds to further their scheme, including traveling on private jets to portray themselves as successful business owners,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “The FBI and our partners will work to bring those to justice who attempt to enrich themselves at the expense of others and take advantage of government programs designed to aid businesses, people, and our economy during a time of need.”
“Honest taxpayers are fed up with crooks like Quin Rudin who defrauded a government program meant to help those in need to line their pockets while skirting their tax obligations," said IRS-Criminal Investigation Special Agent in Charge Darrell Waldon, Washington, D.C. Field Office. "Rudin and his conspirators devised a scheme to steal from a CARES Act loan program to fund their lifestyles. His actions not only caused negative ramifications to those financially connected to him, but also the honest taxpayer when he and his conspirators committed significant tax fraud violations.”
The United States recovered over $15 million of the fraud proceeds. Rudin’s restitution amount will be ordered at a later date.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Darrell J. Waldon, Special Agent in Charge of the Washington, D.C. Field Office, IRS-Criminal Investigations made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
The U.S. Attorney’s Office for the Central District of California and U.S. Small Business Administration provided assistance with the investigation.
Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen, and Assistant Chief David Zisserson of the Tax Division prosecuted the case.
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-cr-46.
Cheyenne Man Sentenced After Trafficking Fentanyl Within 1000 Feet of a SchoolRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that ROBERT BUTLER, 34, of Cheyenne, Wyoming, was sentenced on September 29, 2022, by United States District Court Judge Alan B. Johnson for possession with intent to distribute fentanyl within 1,000 feet of a public elementary school and possession with intent to distribute cocaine. Butler was sentenced to 60 months’ imprisonment and five years of supervised release. He was also ordered to pay a $200 special assessment and $500 in community restitution.
After a traffic stop of Butler in Cheyenne on April 28, 2022, police seized approximately 165 grams of cocaine. A subsequent search of Butler’s home resulted in the seizure of over 600 fentanyl pills, approximately 50 grams of cocaine, and drug paraphernalia.
This crime was investigated by the Cheyenne Police Department and the Drug Enforcement Administration.
Case No: 22-CR-00061-ABJ
Cheyenne Man Charged with Drug and Firearm OffensesRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that a grand jury returned an indictment charging GRADY LYNN PEOPLES, 50, of Cheyenne, Wyoming, with possession with intent to distribute methamphetamine and fentanyl and being an unlawful user of a controlled substance in possession of a firearm. Peoples has been arrested and appeared before United States District Court Magistrate Judge Kelly H. Rankin on September 27, 2022, for an arraignment hearing and pleaded not guilty to the charges. A trial has been set for November 28, 2022, before Chief United States District Court Judge Scott W. Skavdahl.
Peoples faces no less than five years and up to life imprisonment with five years to life of supervised release, up to $20,250,000 in fines and a $300 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Timothy J. Forwood and Stephanie Sprecher.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.Case No: 22-CR-00090-SWS
Cheyenne Man Charged with Drug and Firearm OffensesRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that a grand jury returned an indictment charging GRADY LYNN PEOPLES, 50, of Cheyenne, Wyoming, with possession with intent to distribute methamphetamine and fentanyl and being an unlawful user of a controlled substance in possession of a firearm. Peoples has been arrested and appeared before United States District Court Magistrate Judge Kelly H. Rankin on September 27, 2022, for an arraignment hearing and pleaded not guilty to the charges. A trial has been set for November 28, 2022, before Chief United States District Court Judge Scott W. Skavdahl.
Peoples faces no less than five years and up to life imprisonment with five years to life of supervised release, up to $20,250,000 in fines and a $300 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Timothy J. Forwood and Stephanie Sprecher.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No: 22-CR-00090-SWS
Buzzards Bay Man Pleads Guilty to Role in Violent KidnappingRead the Press Release
BOSTON – A Buzzards Bay man pleaded guilty on Sept. 30, 2022 in federal court in Boston to his role in a violent kidnapping tied to a Cape Cod heroin trafficking ring.
Cameron Cartier, 28, pleaded guilty to one count of conspiracy to commit kidnapping and one count of conspiracy to obstruct justice by retaliating against a witness, victim, or informant. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 10, 2023. Cartier was charged along with four co-conspirators in March 2020.
“Mr. Cartier’s conduct is nothing short of horrifying. He actively and willingly participated in a violent scheme to kidnap, beat, terrorize and threaten to sexually assault a victim who he incorrectly believed was working with law enforcement,” said United States Attorney Rachael S. Rollins. “This case is a good example of how drug trafficking activities can drive violence in our communities. Pursuing drug traffickers and violent criminals and removing them from the neighborhoods they terrorize and harm is a top priority of my administration.”
This case arose from an investigation into a wide-ranging heroin trafficking conspiracy in the Cape Cod area. According to court documents, in April 2019, Cartier and his co-conspirators lured a known victim from Massachusetts to Rhode Island, where they kidnapped and held him, stripped him naked, assaulted and threatened to rape him, and then took his clothing and cellular telephone. The purpose of this kidnapping and assault was to retaliate against the victim because Cartier and allegedly his co-conspirators erroneously believed the victim was cooperating with law enforcement. A video of the kidnapping and assault was allegedly filmed and maintained by Cartier’s co-conspirators.
On Sept. 14, 2022, co-conspirator Albert Lee pleaded guilty to one count of conspiracy to commit kidnapping. On Aug. 11, 2022, co-conspirator Anthony Basilici pleaded guilty to his role in the violent kidnapping as well as drug trafficking, witness retaliation and intimidation charges. Three remaining defendants – Edwin Otero, Justin Joseph and Tony Johnson – have pleaded not guilty and are scheduled for trial in January 2023.
The charge of conspiracy to commit kidnapping provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. The charge of conspiracy to obstruct justice by retaliating against a witness, victim, or informant provides for a sentence of no greater than 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Barnstable Police Chief Matthew K. Sonnabend; and Barnstable County Sheriff James M. Cummings made the announcement. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division are 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.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Woman Pleads Guilty in Large-Scale Fraud Scheme involving Prescription MedicationsRead the Press Release
PITTSBURGH - A resident of Brooklyn, New York, pleaded guilty in federal court to a charge of Wire Fraud Conspiracy, United States Attorney Cindy K. Chung announced today.
Tamara Feldman, also known as Tamara Petrova, age 34, pleaded guilty to one count before United States District Judge David Stewart Cercone.
In connection with the guilty plea, the court was advised that Feldman participated in a fraud scheme along with Devan Abrams, Azad Khizgilov, Roman Shaulov and others. Abrams, Khizgilov, and Shaulov all pleaded guilty to a similar charge and all were sentenced to terms of imprisonment. The large-scale and sophisticated fraud scheme facilitated the black-market importation and sale of tens of millions of dollars of dangerous and addictive prescription medications. In summary, the conspirators established and ran a business that, through a series of misrepresentations, misled various credit card companies into processing credit card transactions for on-line purchases of drugs that were illegal to be sold in the United States. These drugs were often imported from Russia, China, India, and other countries. The complex scheme involved front companies, fake websites, and a tangled web of bank accounts. Feldman participated in the scheme by opening fraudulent merchant accounts and overseeing fraudulent payments.
Judge Cercone scheduled sentencing for March 23, 2023, at 1:00 pm. The law provides for a total sentence of twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service conducted the investigation that led to the prosecution of Feldman and her conspirators.
Bronx Man Sentenced to 87 Months in Federal Prison for Supplying Heroin and Cocaine to Waterbury Drug RingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ALGENYS PAULINO, also known as “Chico” and “Lying Queen,” 34, of the Bronx, New York, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment, followed by five years of supervised release, for supplying narcotics to members of a Waterbury-area drug trafficking ring.
According to court documents and statements made in court, in May 2020, the DEA New Haven Task Force and Waterbury Police Department began an investigation into a drug trafficking organization that was distributing large amounts of heroin, cocaine and crack in the Waterbury area, and was believed to be headed by Zachary Lee Foster, who worked closely with Jason Metz of Naugatuck. The investigation included court-authorized wiretaps on multiple phones used by members of the organization, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs. In December 2020 and January 2021, Paulino was intercepted multiple times on a wiretap negotiating the sale of bulk quantities of heroin and cocaine to Foster and Metz.
On March 1, 2021, a federal grand jury in New Haven returned an indictment charging Paulino, Foster, Metz and 14 others. Paulino was arrested on March 2, 2021.
Foster, Metz, and several associates were arrested on March 3, 2021. In association with these arrests, law enforcement executed seven search warrants and seized approximately 40,000 bags of suspected heroin, 350 grams of cocaine and 50 grams of crack cocaine, and nine firearms
Paulino has been detained since his arrest. On March 1, 2022, he pleaded guilty to one count of conspiracy to distribute controlled substances.
Foster and Metz also pleaded guilty. On June 8, 2022, Metz was sentenced to 10 years of imprisonment. Foster awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Brendan Keefe through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Avery thanked the State’s Attorney’s Office for the Judicial District of Waterbury for its close cooperation in investigating and prosecuting this matter.
Bristol Man Found to Be A Career Offender and Sentenced to 264 Months Imprisonment for Possession with Intent to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On October 5, 2022, Michael Shane Moore, 40, of Bristol, Tennessee, was sentenced to 264 months in prison by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville. During the sentencing proceeding, Judge Corker found Moore to be a career offender based on his criminal history.
As part of the plea agreement filed with the court, Moore agreed to plead guilty to possession with the intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A). After his incarceration, Moore will be on supervised release for a period of 5 years.
According to the plea agreement, officers with the Bristol Tennessee Police Department located a stolen vehicle at a motel. The officers saw Moore exit the motel and get into the stolen car. Officers detained Moore and, during the course of their investigation, learned that he was in possession of 95 grams of methamphetamine, $1,528 in U.S. currency, and a .45 caliber pistol.
“Our office is committed to addressing the violent crime and drug trafficking problem that impacts our communities,” said United States Attorney Francis M. Hamilton III. “We will continue to work with our law enforcement partners to protect the public from those who traffic in drugs while armed.”
“Today’s announcement is a perfect answer as to why we chose to protect and serve the public. There has been an increase of vehicles thefts, illegal firearms possession, and narcotics distribution in our communities. The outcome of this case is the result of extremely great work that was performed by the Bureau of Alcohol, Tobacco, and Firearms (“ATF”) and our law enforcement partners. We will continue to work tirelessly to keep our communities safe from the individuals that continue to endanger our neighborhoods,” said ATF Special Agent in Charge Mickey French.
“This is a great example of the teamwork and cooperation, throughout the entire system that allows us all to be successful in our mission to ensure a safe, healthy environment for our community to thrive,” said Police Chief Matt Austin, Bristol Tennessee Police Department.
This case was the result of an investigation by the Bristol Tennessee Police Department and the ATF.
Assistant U.S. Attorney B. Todd Martin represented the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Barre Woman Sentenced to 18 Months of Imprisonment for Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Tiffany Fisk, 33, of Barre, Vermont, was sentenced today to serve 18 months in prison after her conviction for distributing fentanyl. Chief United States District Judge Geoffrey W. Crawford also ordered Fisk to serve a three-year term of supervised release after her incarceration.
According to court records, in October of 2021 and January of 2022, Fisk distributed fentanyl and cocaine base in Washington County, Vermont to a confidential informant assisting law enforcement.
On January 28, 2022, Fisk and her husband David Tom were in a vehicle stopped by the Vermont State Police. A search of their vehicle revealed Tom to be unlawfully in possession of a firearm. As part of Fisk’s sentencing for drug distribution, she admitted to attempting to obstruct the investigation of her husband by promising cocaine base to a person in exchange for that person making false statements to the Vermont State Police regarding who owned the seized firearm. Tom has pleaded guilty to unlawfully possessing a firearm as a convicted felon. Tom is scheduled to be sentenced on October 17, 2022.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont State Police, the Montpelier Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant United States Attorney Jonathan A. Ophardt handled the prosecution. Fisk was represented by John Mabie, Esq.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psnAtlantic County Man Admits Role in Drug Distribution SchemeRead the Press Release
CAMDEN, N.J. – Atlantic County man today admitted his role in a heroin distribution scheme, U.S. Attorney Philip R. Sellinger announced.
Christopher Gonzalez, 38, of Egg Harbor Township, pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute over one kilogram of heroin and possession with intent to distribute over one kilogram of heroin.
According to documents filed in this case and statements made in court:
On July 12, 2021, a search warrant was executed at codefendant Ricardo Clavijo’s residence, where law enforcement authorities encountered Clavijo and Christopher Gonzalez, Clavijo’s brother. Authorities found 4.3 kilograms of heroin, 5.5 kilograms of fentanyl, 10.8 kilograms of cocaine, drug packaging materials and equipment, and a money counting machine. Some of the heroin was already packaged in tens of thousands of individual doses, ready for street-level distribution.
The counts to which Gonzalez pleaded guilty both carry a mandatory minimum term of 10 years in prison, a maximum term of life in prison, and a maximum fine of $10 million, or twice the gross gain or loss caused by the offense. Sentencing is scheduled for Feb. 9, 2023.
Ricardo Clavijo has already pleaded guilty for his role in the conspiracy.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, Newark Division, DEA Atlantic County HIDTA Task Force, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s guilty plea. He also thanked the Atlantic County Prosecutor’s Office and the Egg Harbor Township Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
Associate of Clairton Gang Sentenced to Prison for Illegally Possessing a GunRead the Press Release
PITTSBURGH – An Allegheny County resident was sentenced on Monday in federal court to 37 months of imprisonment on his conviction of felon in possession of a firearm, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jamiel Green, age 28, of West Mifflin, Pennsylvania.
According to information presented to the court, Green was arrested in possession of a firearm on March 13, 2021, by the Allegheny County Police Department. Green had previously convictions for felony offenses involving illegal gun possession and drug trafficking, and federal law makes it illegal for felons to possess firearms.
In the week prior to May 13, 2021, the Allegheny County Police were assisting the Clairton Police Department because of shootings in that area attributed to the 21 Gang, with whom Green is associated. The Clairton Police Department identified Green as particularly dangerous.
On May 13, 2021, there was a shooting in Clairton, and Allegheny County Police detectives responded. The detectives saw Green and recognized him as someone who was wanted. Green had two outstanding arrest warrants. When the detectives approached the vehicle Green was occupying, Green got of the vehicle and began to run. When the detectives caught up to Green, they found a loaded firearm on his person. A later search of the vehicle revealed three other firearms, fentanyl, and more than $10,000 in cash.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Chung commended the Allegheny County Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Green.
Anoka Man Arrested, Charged with Possession of a Machine Gun and MethamphetamineRead the Press Release
MINNEAPOLIS – An Anoka man has been arrested and charged in a federal criminal complaint for illegally possessing a machine gun and possession with intent to distribute methamphetamine, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, in April 2022, the FBI began investigating Darrian Mitchell Nguyen, 50, based on a tip from a Confidential Human Source (CHS) that Nguyen was in possession of explosive devices, firearms, and methamphetamine, and had expressed a desire to join the Three Percenter militia group, a loosely organized anti-government extremist movement. As alleged in the affidavit, according to the CHS, Nguyen kept weapons, including rifles, shotguns, handguns, a grenade launcher, and pipe bombs in “secret” rooms built within the walls of his residence. The affidavit further alleges that Nguyen was manufacturing and trafficking methamphetamine from his residence. On August 23, 2022, during a meeting at the defendant’s residence, Nguyen sold to the CHS 7.1 grams of methamphetamine for $300.
According to the affidavit, to correct a debt owed to the defendant, Nguyen asked the CHS to provide him with firearms, specifically a short-barreled rifle equipped with an auto sear. Through text messages, Nguyen arranged to meet with the CHS to receive four auto sears and a short-barreled rifle equipped with an auto sear. At the arranged meeting on October 4, 2022, after Nguyen took possession of the machine gun and the auto sears, law enforcement arrested Nguyen and executed a search warrant at his residence. Law enforcement recovered several firearms from a hidden room inside the residence, including an AR style firearm equipped with a grenade launcher and a short-barreled shotgun.
Nguyen is charged with one count of possession of a machine gun, one count of possession with intent to distribute methamphetamine, and one count of possession of a firearm not registered in the National Firearms Registration and Transfer Record. He made his initial appearance today in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright and was ordered to remain in detention pending further proceedings.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Manda M. Sertich and Department of Justice Trial Attorney Justin Sher are prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Anchorage Man Convicted by Jury on Drug and Firearm ChargesRead the Press Release
ANCHORAGE – A federal jury convicted an Anchorage man for possessing heroin, pure methamphetamine and a firearm in furtherance of a drug trafficking crime and for being a felon in possession of a firearm.
According to court documents and evidence presented at trial, Anchorage Police Department officers responded to a 911 call about a man spray painting cars when they encountered Michael Delpriore, Jr, 41 attempting to leave the area in his vehicle. Delpriore refused to obey officer’s commands to stop and exit his vehicle. While refusing to exit the vehicle, Delpriore kept rolling his driver’s window up and down to obscure officers’ view inside the vehicle and continued reaching down towards the floor.
Eventually Delpriore exited the vehicle and was taken into custody. During a pat-search, officers found a digital scale with drug residue, a knife, and over $1,000 cash. After obtaining a search warrant for the vehicle, officers found four grams of methamphetamine, numerous syringes, and two loaded 9mm magazines. Officers also found a loaded semi-auto 9mm pistol and 140 grams of heroin hidden behind the dash near the steering wheel of the vehicle. In total there were 49 live 9mm rounds found in Delpriore’s vehicle.
“Michael Delpriore’s conviction is another step forward in helping make Alaska’s communities and streets safer for everyone,” said U.S. Attorney S. Lane Tucker of the District of Alaska. “My office and our law enforcement partners are using every tool at our disposal to hold individuals accountable for the destructive drugs they sell that ruin so many Alaskan lives.”
“This case represents the importance of the public being committed to helping law enforcement fight crime,” said APD Police Chief Michael Kerle. “This entire investigation started because a citizen witnessed criminal behavior and took the time to alert police. Collaboration between law enforcement entities is important; but the involvement of the community we serve is equally important. Police and citizens working together is the only way successful prosecutions such as this one will continue to happen.”
Chief U.S. District Judge Sharon L. Gleason, who presided over the trial, ordered that Delpriore be detained pending sentencing. Delpriore faces a mandatory minimum of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Anchorage Police Department investigated the case with the assistance of the FBI Anchorage Field Office, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorneys Charisse Arce and Seth Brickey are prosecuting the case.
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Ambridge Man Pleads Guilty to Possessing FentanylRead the Press Release
PITTSBURGH - A former resident of Ambridge, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to 40 grams or more of fentanyl, United States Attorney Cindy K. Chung announced today.
Michael Gamble, age 37, pleaded guilty to one count before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea, the court was advised that on Dec. 10, 2020, law enforcement executed a search warrant upon Gamble’s residence. Law enforcement encountered Gamble sitting on a couch in the basement. A search of Gamble’s person resulted in the seizure of fentanyl and over $2,500.00. Between a cushion on a couch where Gamble was seated, law enforcement recovered a loaded handgun with an attached extended magazine. In a hidden compartment in the basement, officers recovered additional fentanyl. In total, law enforcement seized about approximately 90 grams of fentanyl.
Judge Wiegand scheduled sentencing for Feb. 9, 2023, at 10:00 a.m.. The law provides for a total sentence of life in prison, a fine of $8,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded Gamble into the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Pennsylvania Office of Attorney General and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Gamble.
Alleged Major Bolivian Drug Trafficker Extradited from Argentina to the United StatesRead the Press Release
Assistant U. S. Attorney Kyle Martin (619) 546-7726
NEWS RELEASE SUMMARY – October 5, 2022
SAN DIEGO – Victor Hugo Anez Vaca Diez, aka Chi Chi, alleged leader of a large-scale transnational criminal organization, was arraigned in federal court yesterday following his extradition to the United States from Argentina.
On August 18, 2017, a federal grand jury sitting in the Southern District of California returned a superseding indictment charging Anez Vaca with conspiracy to distribute cocaine with the intent for that cocaine to be imported into the United States, conspiracy to distribute cocaine and methamphetamine, and conspiracy to launder monetary instruments.
Anez Vaca, a Bolivian citizen, was arrested at the Buenos Aires, Argentina airport in January 2022, at the request of the United States, on a Red Notice issued by the International Criminal Police Organization (INTERPOL). Since his arrest, Anez Vaca has remained in custody pending extradition to the United States. He was flown by the United States Marshals Service from Buenos Aires to San Diego on October 3, 2022 and arraigned the following day before U.S. Magistrate Judge Daniel E. Butcher.
“Today is a reminder that international drug traffickers who profit by shipping narcotics into our community are not safe from prosecution,” said U.S. Attorney Randy Grossman. “We will work with our international partners to bring them to justice wherever they may travel.” Grossman thanked the prosecution team, Homeland Security Investigations, the Drug Enforcement Administration and the U.S. Department of Justice’s Office of Enforcement Operations for their excellent work on this case. He also thanked INTERPOL, the Government of Argentina and the Justice Department’s Office of International Affairs for their assistance in securing the arrest and extradition of Anez Vaca.
“The extradition of Anez Vaca Diez to the United States is a perfect example of Homeland Security Investigations broad reach and successful partnerships fostered with our international colleagues,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “This extradition should send a clear message to those who believe they can evade law enforcement. We will find you and work to bring you to the U.S. to face justice.”
“The DEA continues to work with our law enforcement partners to stem the flow of illegal drugs coming into the United States,” said DEA Special Agent in Charge Shelly Howe. “The extradition of Anez Vaca is evidence that by working together we can make our communities safer and bring high-level international traffickers to justice in the United States.”
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Case Number 18CR0680-JAH
Victor Hugo Anez Vaca Diez, aka Chi Chi
SUMMARY OF CHARGES
International Drug Trafficking Conspiracy – Title 21, U.S.C., Sections 959, 963
Mandatory Minimum 10 years’ imprisonment; maximum life imprisonment and $10 million fine
Conspiracy to Distribute Cocaine and Methamphetamine – Title 21, U.S.C., Sections 841, 846
Mandatory Minimum 10 years’ imprisonment; maximum life imprisonment and $10 million fine
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
10 Members of a Drug Trafficking Organization IndictedRead the Press Release
A federal indictment has been unsealed charging 10 defendants with drug conspiracy.
“Federal prosecutors and our law enforcement partners continue the fight to reduce the flow of deadly narcotics into northeastern Oklahoma,” said U.S. Attorney Clint Johnson. “Months of work conducted by special agents and officers resulted in eight arrests and the seizure of illicit guns, drugs, and profits. My office will now seek to hold these alleged drug traffickers accountable in federal court.”
Eight suspects were arrested early Wednesday in Tulsa as part of a law enforcement operation led by the Drug Enforcement Administration and the U.S. Attorney’s Office.
Defendants Keni Garcia-Soberanis, 29, and Madeline Pearl Lavalley, 28, remain at large. The two are alleged to be long time leaders and sources of supply of a drug trafficking organization operating out of Mexico that distributes methamphetamine, heroin and fentanyl in the Tulsa area. Garcia-Soberanis is a citizen of Mexico and Lavalley is alleged to have fled to Mexico after being indicted in a 2017 drug trafficking case in the Northern District of Oklahoma.
Eight other members of the organization were arrested in Tulsa Wednesday and included couriers responsible for delivering or picking up the illicit drugs and proceeds; distributors; and a money launderer.
While executing the arrests and search warrants, federal agents and Tulsa police officers seized approximately:
- 5,000 fentanyl pills;
- 810 grams of black tar heroin;
- 550 grams of suspected cocaine;
- 280 grams of methamphetamine;
- 8 firearms
“The success of Operation Dirt Stain, including the arrest of eight alleged drug-trafficking conspirators and the seizure of various quantities of heroin, cocaine, methamphetamine, and deadly fentanyl fake pills throughout Oklahoma, is a testament to DEA Tulsa’s resolve to keep our families and neighborhoods safe,” said Eduardo A. Chávez, DEA Dallas Special Agent in Charge, who oversees operations in Oklahoma. “Our partners in both Tulsa and the greater northeastern Oklahoma were instrumental in this success. We are stronger together and that should be a warning to other drug traffickers and distribution organizations in Oklahoma. You’re next.”
Defendants include:
-Keni Garcia-Soberanis, 29, of Acapulco, Mexico
- Madeline (Maddie) Pearl Lavalley, 28, of Collinsville
-Rafael Torres-Palacios, 42, of Tulsa
-Pablo Garcia, birthdate unknown, of Tulsa
-Kalin Marie Campbell, 35, of Tulsa
-Anita Lynn Oslin, 56, of Tulsa
-Brandon James Roberson, 39, of Pocola
-Ashlee Lynn Trousdale, 33, of Tulsa
-Melissa Hope Sawyer, 46, of Tulsa
-Jimmy Dewayne Jenkins, 33, of Tulsa
Operation Dirt Stain is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach.
The Drug Enforcement Administration, Homeland Security Investigations and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Ben Tonkin is prosecuting the case.
4 October 2022
Young Laredo man charged for smuggling five resulting in rollover crashRead the Press Release
LAREDO, Texas – An 18-year-old man residing in Laredo has been indicted on charges of alien smuggling causing serious bodily injury, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury returned the two-count indictment against Cesar Alberto Rodriguez. He is expected to appear for his arraignment before a U.S. Magistrate Judge in the near future.
According to the criminal complaint originally filed in the case, on Sept. 13, Rodriguez drove a pickup truck carrying two residential air-conditioning units into the Hebbronville Border Patrol (BP) checkpoint. There, a K-9 allegedly alerted law enforcement to the presence of humans at the bed of the truck. They conducted an investigation and discovered undocumented individuals concealed inside the units, according to the charges.
At that time, the charges allege law enforcement asked Rodriguez for his identification. After handing them his Texas ID card, he allegedly put his truck into drive and sped away from the checkpoint.
The complaint alleges authorities found his vehicle in Bruni rolled over with debris scattered around it. At the scene, they found five injured undocumented individuals who were later transported to a hospital for treatment, according to the charges. One allegedly had to be air lifted to another location for further treatment.
If convicted, Rodriguez faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Yonkers Man Sentenced to 20 Years for March 2011 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that MARCUS CHAMBERS, a/k/a “Chino,” a/k/a “Chi D,” a/k/a “SP,” was sentenced yesterday to 20 years in prison for the 2011 murder of Jonathan Johnson, 21, on March 18, 2011, in White Plains, New York. On December 20, 2021, CHAMBERS pled guilty before U.S. District Judge Nelson S. Román, who imposed his sentence.
According to the allegations in the Indictment to which the defendant pled guilty and statements made in public court proceedings:[1]
On or about March 18, 2011, CHAMBERS and his co-defendant DARNELL KIDD murdered Jonathan Johnson by shooting him during the course of an armed robbery for marijuana in White Plains, New York. CHAMBERS arranged by phone to purchase the marijuana from Johnson. CHAMBERS and KIDD met with Johnson to rob him of marijuana, and during the robbery, Johnson was shot and killed.
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In addition to his prison term, CHAMBERS, 31, of Yonkers, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the White Plains Police Department and the FBI Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, New York State Police, New York City Police Department, Mount Vernon Police Department, Putnam County Sheriff’s Office, Town of Ramapo Police Department, Yonkers Police Department, Greenburgh Police Department, Peekskill Police Department, Westchester County Police Department, and Westchester County District Attorney’s Office. Mr. Williams also thanked the Westchester County District Attorney’s Office for its assistance in this matter.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Olga I. Zverovich, Christopher Brumwell, and Steven J. Kochevar and Paralegal Specialist Shannon Becker are in charge of the prosecution.
The allegations contained in the Indictment against DARNELL KIDD are merely accusations, and he is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described regarding DARNELL KIDD should be treated as an allegation.
Yancey Co. Man Is Sentenced to 20 Years for Producing Child PornographyRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that Joshua Andrew Phillips, 33, of Burnsville, N.C., was sentenced to 20 years in federal prison for producing child pornography. Upon his release from prison, Phillips will be subject to a lifetime of supervised release and must register as a sex offender.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Shane Hilliard of the Yancey County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
On May 20, 2022, Phillips pleaded guilty to production of child pornography. According to filed documents and statements made in court, in February 2020, the Yancey County Sheriff’s Office received information from the National Center for Missing and Exploited Children (NCMEC) that an individual was using social media to share child pornography. Law enforcement identified Phillips as the person sharing the child pornography. Over the course of the investigation, law enforcement retrieved Phillips’s cellular phones and computer. An HSI Computer Forensic Analyst conducted a forensic review of Phillips’s devices and located the child pornography images of the minors Phillips had produced. In addition, law enforcement also discovered on the defendant’s devices more than 8,400 images and videos that depicted children being sexually abused.
Phillips is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended HSI and the Yancey County Sheriff’s Office for their joint investigation of the case.
Assistant U.S. Attorney Alexis Solheim, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
Yale Agrees to Pay $308K to Resolve Allegations of Violations of Controlled Substances ActRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that Yale University, on behalf of Yale Medicine and the Yale Fertility Center, has entered into a civil settlement agreement with the federal government in which it will pay a total of $308,250 to resolve allegations that it violated civil provisions of the Controlled Substances Act.
The Yale Fertility Center is a fertility medical practice located on Yale University’s West Campus, in Orange, Connecticut. The Yale Fertility Center is operated by Yale Medicine, the clinical practice for the Yale School of Medicine, and a component of Yale University (collectively, “Yale”). The settlement resolves allegations that Yale failed to maintain complete and accurate records concerning the controlled substances it purchased and dispensed at the Yale Fertility Center, and failed to provide effective controls and procedures to guard against theft and diversion of controlled substances.
In November 2020, Donna Monticone, a nurse responsible for ordering and inventorying controlled substances at the Yale Fertility Center, was discovered to have tampered with vials of fentanyl. The fentanyl was kept at the Yale Fertility Center for patient use during out-patient surgical fertility procedures. A criminal investigation revealed that Monticone stole the fentanyl for her own use. She withdrew the fentanyl from the vials, reinjected saline into the vials and reintroduced the vials into the stock of the Yale Fertility Center to be used during surgical procedures.
In March 2021, Monticone pleaded guilty in federal court to tampering with a consumer product. A related civil investigation identified 685 separate occasions in which the record-keeping requirements of the Controlled Substances Act were allegedly violated by Yale. The DEA’s audit of the Yale Fertility Center’s inventory of controlled substances revealed discrepancies of 665 units of controlled substances, including vials of fentanyl 100mcg, ketamine 10mg, and midazolam 2mg. The investigation also found that Yale failed to maintain an initial inventory, failed to keep a record of destruction of controlled substances, and was unable to readily produce DEA e222 forms, which are required records for purchase and sale of Schedule II controlled substances.
Congress, with the passage of the Controlled Substances Act, took steps to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances – from their manufacture to their consumption by the ultimate user – was to be subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances, while still ensuring that an adequate supply of those substances meet the medical and scientific needs of the United States.
“This settlement highlights our office’s efforts to ensure compliance with the Controlled Substances Act,” said U.S. Attorney Avery. “Healthcare providers’ obligations to keep accurate records and safeguard access to controlled substances are key to prevent diversion of these powerful drugs, and to ensure the safety of our community.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England. “Failure to do so increases the potential for diversion and jeopardizes public health and public safety. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
This investigation was conducted by the Drug Enforcement Administration’s Office of Diversion Control. The case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek.
Woburn Restaurant Owners Arrested and Charged with Human SmugglingRead the Press Release
BOSTON – A father and son who own and operate two Woburn restaurants, Taste of Brazil—Tudo No Brasa and The Dog House, were arrested today and charged with human smuggling.
Jesse James Moraes, 64, and Hugo Giovanni Moraes, 42, both of Woburn, were charged with conspiring to encourage and induce an alien to come to, enter, and reside in the United States for the purpose of commercial advantage or private financial gain, knowing and in reckless disregard of the fact that such coming to, entry, and residence is or will be in violation of law. Marcos Chacon, 29, also of Woburn, was charged with knowing transfer of a false identification document knowing that such document was produced without lawful authority, and with illegal reentry by a deported alien. The word “alien” is used in this release because it is the language utilized in the statute(s) these individuals are alleged to have violated.
Following an initial appearance this afternoon before U.S. District Court Chief Magistrate Judge M. Page Kelley in federal court in Boston, Jesse Moraes, Hugo Moraes and Marcos Chacon were detained pending a detention hearing.
Additionally, Chelbe Willams Moraes, a resident of Brazil, was charged in a four-count indictment unsealed today with conspiracy to encourage and induce an alien to come to, enter, and reside in the United States for financial gain; encouraging and inducing an alien to come to, enter, and reside in the United States for financial gain; money laundering; and money laundering conspiracy. He is the brother of Jesse Moraes and uncle of Hugo Moraes.
According to the charging documents, Chelbe Moraes and his coconspirators smuggled individuals from Brazil into the United States for a fee of approximately $18,000 – 22,000. Once the individuals were in the United States, Jesse Moraes and Hugo Moraes allegedly employed them in their restaurants in Woburn, withholding their wages in order to pay off their smuggling debts. Chelbe Moraes, Jesse Moraes and Hugo Moraes also allegedly gave or offered to give fake documentation to the individuals in order to support asylum claims or obtain work authorization. Marcos Chacon allegedly sold fake documentation to the individuals at the request of the Moraes defendants.
The charge of encouraging and inducing, and conspiring to encourage and induce, an alien to come to, enter, and reside in the United States for financial gain, knowing and in reckless disregard of the fact that such coming to, entry, and residence is or will be in violation of law provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of knowing transfer of a false identification document knowing that such document was produced without lawful authority provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of illegal reentry by a deported alien provides for a sentence of up to two years in prison, up to three years of supervised release, and a fine of up to $250,000. The charges of money laundering and money laundering conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount involved in the transaction, whichever is greater. 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; Matthew Millhollin, Special Agent in charge for the Homeland Security Investigations New England Field Office; Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Woburn Police Chief Robert F. Rufo, Jr., made the announcement today. Valuable assistance in the investigation was provided by the Norwood Police Department. Assistant U.S. Attorneys James D. Herbert, Kelly Lawrence and Samuel R. Feldman of Rollins’ Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
West Sacramento Man Sentenced to More Than 3 Years in Prison for Mail Fraud and Aggravated Identity TheftRead the Press Release
ACRAMENTO, Calif. — Philip Rich, 50, of West Sacramento, was sentenced today to three years and three months in prison for one count of mail fraud and one count of aggravated identity theft, U.S. Attorney Phillip A. Talbert announced. Rich was also ordered to pay $113,400 in restitution.
According to court documents, between March 2019 and March 2021, Rich and co-defendant Kimberly Acevedo perpetrated a mail fraud scheme that involved theft of U.S. mail, identity theft, and unlawful possession of dozens of stolen bank cards. Generally, Rich and Acevedo obtained the personally identifiable information (PII) of victims and used that information to apply for new credit cards, debit cards, checkbooks, and other financial instruments to be sent to the victims’ real home addresses. The defendants then submitted change-of-address requests to U.S. Postal Service at www.usps.com using the victims’ PII. These change-of-address requests rerouted the victims’ mail to defendants’ shared home address, where they would open the mail and use its contents to make fraudulent purchases and cash fraudulent checks.
When federal agents executed a search warrant at defendants’ residence on Oct. 14, 2020, they seized dozens of notebooks filled with hundreds, if not thousands, of identity-theft victim PII. The notebooks were scattered throughout the house, though mainly located in defendants’ shared bedroom. In addition, agents recovered an envelope, labeled “ID Templates,” in the bedroom containing approximately 10-15 fake California Driver’s Licenses in the names of various victims, but featuring Rich and Acevedo’s photographs and fake authentication features. Agents also recovered the tools required to construct the fake IDs as well as a magstripe device. Further, agents recovered over 50 credit and debit cards in the home as well as approximately 40 checkbooks in victims’ names as well as in the names of Rich and Acevedo. In total, defendants’ scheme caused over $110,000 in actual and intended loss.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Yolo County Sheriff’s Office. Assistant U.S. Attorneys Denise N. Yasinow and Robert J. Artuz are prosecuting the case.
Charges of mail fraud, aggravated identity theft, possession of stolen mail, and unlawful possession of 15 or more unauthorized access devices remain pending against Acevedo. The charges are only allegations; she is presumed innocent until and unless proved guilty beyond a reasonable doubt.
Washington man admits trafficking meth, heroin, cocaine and fentanyl to Cascade County, Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Washington man admitted to a drug trafficking crime today after law enforcement seized more than five pounds of methamphetamine along with other drugs from his vehicle near Great Falls last year, U.S. Attorney Jesse Laslovich said.
Jorge Perez, aka Chicago, 41, of Spokane, Washington, pleaded guilty to possession with intent to distribute controlled substances. Perez faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Feb. 16, 2023. Perez was detained pending further proceedings.
The government alleged in court documents that in March 2022, witnesses in Great Falls reported to law enforcement that they had been working with Perez to bring large quantities of meth, heroin, cocaine and fentanyl from Spokane to the Great Falls area for distribution. The FBI’s investigation identified the vehicle Perez was driving and, with assistance from local law enforcement, stopped the vehicle outside of Great Falls on June 11, 2022. Perez was the driver and sole occupant and had more than $4,000 cash on his person. Perez admitted there were pounds of drugs in the vehicle. Law enforcement seized approximately five pounds of meth, which is the equivalent of 18,120 doses, along with cocaine and fentanyl pills. In a second traffic stop in which Perez was a passenger, law enforcement found meth, cocaine and heroin in the vehicle. In a third traffic stop, on the Rocky Boy’s Indian Reservation, in which Perez was the driver and sole passenger, law enforcement found meth, cocaine and fentanyl.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the FBI, Homeland Security Investigations, Great Falls Police Department, Cascade County Sheriff’s Office, Montana Highway Patrol and Chippewa Cree Law Enforcement.
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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Washington Man Sentenced for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, IA – Brian James Bell, age 22 of Mount Vernon, Washington, was sentenced on Friday, September 30, 2022, to 66 months in prison following his plea to a charge of Possession with Intent to Distribute Methamphetamine.
In June 2021, Bell was involved in a traffic accident on Interstate 29. Law enforcement arrived on the scene and observed Bell carrying a backpack away from the accident site. A During a probable cause search of the vehicle and backpack, law enforcement located 97 grams of methamphetamine and two loaded firearms.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Pottawattamie Sheriff’s Department and Southwest Iowa Narcotics Enforcement Task Force investigated the case.
Vinita Man Sentenced to 10 Years in Federal Prison for Attempting to Sexually Entice a MinorRead the Press Release
A Vinita man was sentenced in federal court for attempting to sexually entice an individual he believed to be a 14-year-old boy, announced U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced John William Thomas Flechs, 37, to ten years in federal prison followed by five years of supervised release.
“Thankfully, an undercover officer posing as a 14-year-old caught John Flechs before he could reach his intended target- a teenage boy,” said U.S. Attorney Clint Johnson. “Flechs will spend 10 years in federal prison as a consequence of his crime.”
Starting on Jan. 15, 2021, Flechs unknowingly initiated a conversation with the undercover officer, believing he was a minor. In Kik messages, Flechs complimented the “teenager” and asked him to send photographs on three occasions. Flechs further described sexual encounters he had with male relatives, introduced graphic sexual topics that would allude to sexual acts on the boy, discussed the boy’s penis size, and asked if he had ever had anal sex. He then suggested they meet.
Still posing as the 14-year-old boy, the undercover agreed to meet Flechs at a skate park. Flechs was taken into custody when he arrived at the park.
The Rogers County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Julie A. Childress and Edward Snow are prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Update on Press Release Issued August 22, 2013Read the Press Release
A federal jury found Patrick Campbell, of Sierra Leone, not guilty of the charges that were announced in the press release that appears below, originally issued on August 22, 2013.
A federal judge entered a judgment of acquittal in Campbell’s case on May 19, 2014.
Titled Individual Charged With Brokering Uranium Deal Intended For Supply To Iran
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce today that Patrick Campbell, 33, of Freetown, Sierra Leone, was arrested yesterday in Queens, NY as a result of an investigation conducted by the ICE-HSI. Campbell made his initial appearance earlier today in the Eastern District of New York.
According to the criminal complaint filed in the Southern District of Florida, Patrick Campbell was charged with brokering the supply of goods which the defendant knew were destined and intended for supply to Iran, in violation of the International Emergency Economic Powers Act (IEEPA) Title 50, United States Code, Section 1701, 1705 and the Iranian Transaction Regulations, 31 CFR 560.416, 560,204 and 560.203. If convicted, Campbell faces a possible statutory maximum sentence of up to 20 years in prison, followed by a term of three years of supervised release, and a possible $1,000,000 fine.
The criminal complaint alleges that on August 21, 2013, Campbell traveled to the United States from Sierra Leone and brought with him a sample of uranium, concealed in the soles of the shoes in his luggage, which he believed was to be provided to a representative of individuals seeking to obtain uranium for supply to Iran.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Port Authority of New York and the New Jersey Police Department. This case is being prosecuted by Assistant United States Attorney Michael Walleisa.
A criminal complaint is only an accusation and the defendant is presumed innocent until proven guilty.
Attachment:
Patrick Campbell Complaint (PDF)
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
USAO-KS Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
KANSAS CITY, KAN. – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“As technology evolves so does the complexity of the scams targeting older adults. Unfortunately, too often these fraudulent schemes procure large amounts of money from victims,” said U.S. Attorney Duston Slinkard. “The DOJ won’t waver in efforts to dismantle these criminal enterprises and bring perpetrators to justice no matter where in the world they are based.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
This past year, the USAO –District of Kansas prosecuted cases related to fraud committed against senior citizens.
• In February 2021, Oyindamola Akinrinola, 24, of Lawrence pleaded guilty to one count of wire fraud. She admitted to receiving more than $160,000 in deposits related to scams and remitting the majority of money to Nigeria after keeping a portion of the proceeds for herself. Sentencing is scheduled for November 15, 2022.
• In May 2022, Innocent N. Ugwu, 24, of Fort Riley was indicted on five counts of wire fraud, five counts of laundering monetary instruments, and one count of procurement of citizenship or naturalization unlawfully. Ugwu is accused of conspiring with others to commit fraud using false pretenses and promises, and the omission of material facts to carry out romance, advance fee and other fraudulent schemes.As part of the USAO –KS’s elder fraud efforts, it engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. [ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.justice.gov/elderjustice.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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United States Attorney Announces Efforts to Combat Fraud Against Seniors in Southern IllinoisRead the Press Release
FAIRVIEW HEIGHTS, Ill. – In connection with the Department of Justice’s announcement of its Elder
Justice Sweep earlier today, United States Attorney for the Southern District of Illinois, Rachelle
Aud Crowe, made the following announcement: “Combating fraud against the elderly is the number one priority of our Fraud & Corruption section,”
U.S. Attorney Crowe stated. “Anytime a senior is victimized, we work very hard to find the responsible criminals and bring them to justice.”Six federal prosecutors are assigned to the district’s Fraud & Corruption section. They are
Assistant United States Attorneys: Scott Verseman, Chief; Kevin Burke, Zoe Gross, Peter Reed, Steve Weinhoeft and Luke Weissler.As an example of the office’s efforts to hold accountable those who harm the elderly, U.S. Attorney
Crowe cited to the recent guilty plea of Ashley McKinney, 39, of Cahokia, Illinois. McKinney’s co- defendant, Erica Rose, 33, of East St. Louis, Illinois, worked as a home healthcare provider for elderly persons in the Metro East. While working in the victims’ homes, Rose stole their bank account information and provided it to McKinney. McKinney then used that information to make illegal purchases, including purchasing an automobile. McKinney and Rose were indicted in January
2020, but McKinney remained a fugitive until she was eventually hunted down and arrested by the
United States Marshals. McKinney will be sentenced on November 22, 2022. Rose previously pled guilty and was sentenced to prison.U.S. Attorney Crowe also noted that Jaykumar Patel, 33, of Florida, pled guilty on June 28, 2022, to assisting in a fraud scheme that victimized an elderly woman in Alton, Illinois. That fraud scheme, which was based in the country of India, tried to convince seniors that their identities had been stolen and that they needed to pay thousands of dollars to fix the situation. Patel was a
“Money Mule” for the organization. “Money Mules” are individuals who receive funds from victims and send the money on to the criminals who conduct the schemes. Patel will be sentenced on January
5, 2023.“In addition to the Identity Theft schemes, there are a variety of other schemes out there that seniors need to be on the look out for,” added U.S. Attorney Crowe. “Those schemes include: (1)
Grandparents Scams – where fraudsters impersonate seniors’ grandchildren, or some other loved one, and try to convince the seniors that they need funds immediately, usually for some type of medical or legal emergency; (2) Romance Scams – where scammers meet seniors online, usually through dating sites, pretend to fall in love with them, and then persuade the seniors to send them money; (3) Tax Scams – where fraudsters falsely tell seniors that they owe back taxes and must make immediate payments; and (4) Lottery Scams – where fraudsters try to convince seniors that they have won the lottery or some other type of prize, but need to send money first for taxes or fees.”
“Another situation we’re seeing,” added U.S. Attorney Crowe, “is scammers recruiting seniors to participate in, and help them with, their fraud scams. When seniors knowingly help these scammers, they themselves can be facing federal prison sentences.”As an example of this situation, U.S. Attorney Crowe noted last week’s guilty plea by Danny Vaughn, 64, of Centralia, Illinois. A few years ago, Vaughn met a person on a dating site whom he thought was a young woman that was interested in having a relationship with him. This person turned out to be a scammer. The scammer convinced Vaughn to engage in illegal activity, including purchasing items using stolen credit cards and then shipping the stolen items overseas, and depositing counterfeit checks into his bank accounts and sending that money overseas. Vaughn will be sentenced on January 18, 2023.
When asked what seniors can do to avoid being victimized, U.S. Attorney Crowe gave the following tips:
1. Be wary of individuals you meet online or over the phone;
2. If someone you’ve never met in person claims to be in love with you, there’s a good chance that person is a scammer;
3. If someone you’ve never met before asks you for, or demands, money, there’s a good chance it’s a scam;
4. If someone is asking you for, or demanding, money, ask your son, daughter, loved one, or good friend what they think. This is true even if the person asking for money claims there is no time for you to talk with your family or friends; and
5. If someone contacts you claiming to be from a company or institution, such as the IRS or your bank, hang up and call them back on a telephone number you look up yourself. This will enable you to talk to representatives of the real company or institutions.
“In summary, we want to do everything we can to protect our seniors from becoming victims. A big part of that is making seniors aware of the fraud scams out there. If you have an elderly relative or friend, I hope you’ll take a few minutes to discuss this topic with them. If you are a senior yourself, my advice and avoid falling prey to these vicious scammers.”
U.S. Attorney’s Office of the Eastern District of Missouri Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
EASTERN DISTRICT OF MISSOURI – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“This office has done more than just prosecute those who prey on older adults,” said Sayler A. Fleming, U.S. Attorney for the Eastern District of Missouri. “Along with law enforcement partners, older adult advocates and consumer protection groups, we have focused on providing education, outreach events and other vital services to vulnerable populations to try and help them avoid becoming victims in the first place.”
During the period from September 2021 to September 2022, Justice Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
This past year, the Eastern District of Missouri pursued seven elder fraud cases involving 10 defendants, 62 victims who were over the age of 60 and losses in excess of $4,300,000. The fraud schemes ranged from embezzlement by a bank manager from elderly account holders to romance fraud schemes involving transnational groups to a woman who fraudulently obtained an $18,000 student loan. With the assistance of the district’s law enforcement partners and advocacy groups, the U.S. Attorney’s Office has been able to prosecute fraudsters and provide necessary resources to their victims.
As part of the Eastern District of Missouri’s efforts to combat elder fraud, it engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. By networking with the St. Louis Elder Financial Protection Coalition, the Better Business Bureau’s Consumer Fraud Task Force and Cape Girardeau County, the district has participated in the Cape Girardeau County Senior Information Fair and the World Elder Abuse Awareness Day. The office also helped produce a public service announcement featuring an 81-year-old money mule and educated the public via the media. Members of the U.S. Attorney’s office and our federal law enforcement partners are available to conduct educational seminars for community groups, civic organizations and other groups.
The Justice Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 5:00 a.m. to 10:00 p.m. Central. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.justice.gov/elderjustice.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office for the Southern District of California Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
Assistant U. S. Attorney Oleksandra Johnson (619) 546-9769
NEWS RELEASE SUMMARY – October 4, 2022
San Diego, CA – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation.
The Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“The Southern District of California is proud to take part in the Justice Department’s efforts to combat elder fraud by joining the expanded Transnational Elder Fraud Strike Force,” said U.S. Attorney Randy Grossman. “Our office is committed to investigating elder fraud and bringing to justice those who target seniors.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
This past year, the Southern District of California successfully pursued cases affecting seniors in our district and nationwide. With the help of Consumer Protection Branch and the San Diego Elder Justice Task Force, our office indicted and is prosecuting United States v. Knowles et al., 21cr2216-CAB, a nationwide Racketeer Influenced and Corrupt Organizations Act (“RICO”) conspiracy involving a “grandparent scam” where elderly victims were convinced, over the phone, that their loved ones were in jail and needed money to cover bail.
These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. The criminals engaged in extortion and fraud to swindle about $2 million from more than 70 victims across the nation. Ten elderly victims who resided in San Diego County lost over $300,000 to the fraud. Of the eight charged individuals, six have been arrested and pleaded guilty. Three of the convicted defendants were sentenced to 108 months, 46 months, and 24 months in prison for their roles in the criminal enterprise. In sentencing one of the defendants, the federal judge described the scheme as “heartbreakingly evil.” Three remaining defendants are set to be sentenced on November 17, 2022.
In another case prosecuted by our office, United States v. Phimmasone, 21cr3262-LL, the defendant admitted to embezzling over $350,000 from a local company that provided in-home care services for mostly elderly individuals. The sentencing hearing is set for November 14, 2022.
But prevention is just as important as prosecution. We continually reach out to community groups and stakeholders to raise awareness of red flags and increase reporting of suspicious behavior. In October 2021, our office conducted virtual training on common elder scams and fraud against seniors for residents of the White Sands La Jolla Senior Living Community. In August 2022, we presented information about recent fraudulent schemes and preventing victimization at the Senior Wellness Community Event held at One Safe Place, The North County Family Justice Center.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 or 833-372-8311.
This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. [ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.