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26 August 2022
President and Treasurer of Super PAC Sentenced for Dark Money SchemeRead the Press Release
WASHINGTON – The president and treasurer of a Super PAC was sentenced today to 14 months in prison for scheming to lie to the Federal Election Commission (FEC) about the true identities of donors.
The Super PAC, which was also sentenced today, was ordered to pay a $150,000 fine and to serve three years of probation.
According to the admissions made in connection with their pleas, Joseph Fuentes-Fernández, 62, of Arlington, Virginia, and Salvemos a Puerto Rico, the Super PAC for which he served as president and treasurer, raised funds to support the 2020 election campaign of Public Official-1, then a candidate for office in the executive branch of the government of Puerto Rico. Soon after Salvemos a Puerto Rico was organized, Fuentes and others also formed two shell § 501(c)(4) nonprofit social welfare organizations. These two § 501(c)(4) entities were registered within seven minutes of each other, listed the same mailing address, and shared some of the same officers.
Fuentes further admitted that he and others solicited hundreds of thousands of dollars of donations to the two shell nonprofit entities, which rapidly sent most of those funds to Salvemos a Puerto Rico. Fuentes and Salvemos a Puerto Rico then reported to the FEC that the nonprofit entities were the donors of those funds, rather than reporting the true source of the funds. The purpose of routing these donor funds through the nonprofit entities was exclusively to conceal the true identities of the donors to Salvemos a Puerto Rico. For example, in October 2020, Fuentes sent this text message to a potential donor: “You can use a third party to not disclose the true donor.” By ensuring that many of the true donors to Salvemos a Puerto Rico remained anonymous, Fuentes and Salvemos a Puerto Rico deprived the people of the Commonwealth of Puerto Rico and the FEC of information about the true source of hundreds of thousands of dollars flowing into Puerto Rico’s political system.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The FBI’s San Juan Field Office investigated the case.
Trial Attorney Jonathan E. Jacobson of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico prosecuted the case.
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President and Treasurer of Super PAC Sentenced for Dark Money SchemeRead the Press Release
The president and treasurer of a Super PAC was sentenced today to 14 months in prison for scheming to lie to the Federal Election Commission (FEC) about the true identities of donors.
The Super PAC, which was also sentenced today, was ordered to pay a $150,000 fine and to serve three years of probation.
According to the admissions made in connection with their pleas, Joseph Fuentes-Fernandez, 62, of Arlington, Virginia, and Salvemos a Puerto Rico, the Super PAC for which he served as president and treasurer, raised funds to support the 2020 election campaign of Public Official-1, then a candidate for office in the executive branch of the government of Puerto Rico. Soon after Salvemos a Puerto Rico was organized, Fuentes and others also formed two shell § 501(c)(4) nonprofit social welfare organizations. These two § 501(c)(4) entities were registered within seven minutes of each other, listed the same mailing address, and shared some of the same officers.
Fuentes further admitted that he and others solicited hundreds of thousands of dollars of donations to the two shell nonprofit entities, which rapidly sent most of those funds to Salvemos a Puerto Rico. Fuentes and Salvemos a Puerto Rico then reported to the FEC that the nonprofit entities were the donors of those funds, rather than reporting the true source of the funds. The purpose of routing these donor funds through the nonprofit entities was exclusively to conceal the true identities of the donors to Salvemos a Puerto Rico. For example, in October 2020, Fuentes sent this text message to a potential donor: “You can use a third party to not disclose the true donor.” By ensuring that many of the true donors to Salvemos a Puerto Rico remained anonymous, Fuentes and Salvemos a Puerto Rico deprived the people of the Commonwealth of Puerto Rico and the FEC of information about the true source of hundreds of thousands of dollars flowing into Puerto Rico’s political system.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The FBI’s San Juan Field Office investigated the case.
Trial Attorney Jonathan E. Jacobson of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico prosecuted the case.
Postal Employee Sentenced for Possessing Stolen MailRead the Press Release
Ocala, Florida – Senior U.S. District Judge John Antoon II has sentenced Aleia Deborah Green (20, Brooksville) for possessing stolen mail. Green was sentenced to the maximum term of probation—five years—and ordered to make full restitution in the amount of $956.53 to the 23 victims of her offense. Green had pleaded guilty on June 1, 2022.
According to court records, Green worked as a contract mail carrier for the United States Postal Service (USPS). She delivered mail for the Crystal River Post Office. On October 19, 2021, after receiving complaints about missing mail from Green’s route, federal agents conducted surveillance at a neighborhood cluster box. The agents placed a piece of mail containing money in the outgoing mail slot of the cluster box. Green subsequently retrieved that mail, opened it, and stole the money. When confronted by the agents, Green admitted to the theft. She also confessed to opening approximately 100 other pieces of mail along her route since August 2021.
This case was investigated by the United States Postal Service – Office of the Inspector General. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
Partner in Key West Labor Staffing Companies Sentenced for Tax, Immigration, and Money Laundering CrimesRead the Press Release
A partner in several Key West labor staffing companies was sentenced today to more than 24 years in prison for tax, immigration, and money laundering crimes related to the operation of those businesses.
According to court documents and evidence presented at trial, Mykhaylo Chugay and others owned and operated a series of labor-staffing companies in southern Florida, including General Labor Solutions LLC, Liberty Specialty Service LLC, Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC, and Tropical City Group LLC, between August 2007 and July 2021. Through these staffing companies, Chugay facilitated the employment of individuals in hotels, bars, and restaurants in Key West and other locations, even though the employees were not authorized to work in the United States.
Chugay and his co-conspirators also defrauded the IRS out of more than $25 million in income and Social Security and Medicare taxes that should have been collected and paid over in connection with the employment of these workers. Chugay conspired with others to encourage some workers to enter the United States and remain in the country, in violation of immigration laws. Chugay and others sent checks and wires totaling more than $11 million in proceeds from the illegal scheme to conspirators in Ukraine and elsewhere.
In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez for the Southern District of Florida ordered Chugay to serve three years of supervised release. Judge Martinez will enter a forfeiture money judgement and order Chugay to pay at a later date.
“Chugay’s illegal staffing and money laundering operation lasted more than a decade and cost the government millions of dollars in unpaid payroll taxes,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Employers who follow the rules and pay their fair share of taxes deserve to compete on a level playing field. Those who cut corners and evade their legal obligations should know they will be investigated and prosecuted.”
“The elaborate scheme organized by this organization took advantage of U.S. Government programs designed to assist vulnerable populations seeking assistance and a better life here in the US for their own personal gain,” said Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami. “This sentence is the culmination of a lengthy investigation which demonstrates the resolve and determination of HSI and its partners to stop individuals trying to take advantage of the systemic vulnerabilities to fuel their lavish lifestyles.”
“We are committed to finding criminals who break the law to gain an unfair market advantage and enrich themselves by avoiding to pay taxes,” said Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation Miami Field Office. “This is another example of how our local agents and staff applied their skilled forensic financial analysis and criminal investigative expertise to investigate crooked staffing companies engaged in illegal employment practices.”
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
The U.S. Department of Homeland Security's Homeland Security Investigations and IRS-Criminal Investigation are investigating the case. U.S. Citizenship and Immigration Services and U.S. Customs and Border Protection, Air and Marine Operations provided substantial assistance at trial.
Senior Litigation Counsel Sean Beaty, Trial Attorneys Jessica A. Kraft and Nicholas J. Schilling Jr., and Paralegal Robert Resto of the Tax Division, and Assistant U.S. Attorney Chris Clark for the Southern District of Florida, are prosecuting the case.
Parker Man Sentenced for Illegally Possessing a FirearmRead the Press Release
PHOENIX, Ariz. – Last week, Michael John Dean Nopah, 42, of Parker, Arizona, was sentenced by United States District Judge John J. Tuchi to 70 months in prison, followed by three years of supervised release. Twenty-five months of Nopah’s federal sentence was ordered to run consecutive to a California sentence he is currently serving. Nopah previously pleaded guilty to Felon in Possession of a Firearm.
On April 24, 2020, in Parker, Arizona, Nopah was found in possession of a Glock model 30S, .45 caliber pistol capable of accepting a large capacity magazine. Nopah is a convicted felon and prohibited from possessing firearms and ammunition.
The FBI and CRIT Police Department conducted the investigation in this case. Assistant U.S. Attorney Christina J. Reid-Moore, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00546-PHX-JJT
RELEASE NUMBER: 2022- 149_Nopah
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Norfolk Man Sentenced for Possessing Glock Switches and Glock Handgun in Furtherance of Drug-Trafficking CrimeRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 140 months in prison for possessing several Glock switches, or autosear kits, that convert handguns into fully automatic machineguns, as well as a Glock handgun that he used protect his marijuana-distribution efforts.
According to court documents, Karon Rayosha Howard, 28, sold Glock switches, or autosear kits, that convert handguns into fully automatic machineguns. One of his customers, Shy'Quan Dodson, was a Kai Gang member who used a Glock machinegun in a shootout on July 18, 2021, in downtown Norfolk, then was involved in a high-speed chase with police officers that resulted in his vehicle crashing. He threw the Glock out the car window, but officers recovered it and saw that it had been illegally modified with a 3D-printed Glock switch, and evidence from Dodson’s phone indicated that Howard had sold him the device.
On September 1, 2021, officers secured and executed a search warrant for Howard’s residence, where they recovered two more Glock switches, another firearm, and marijuana packaged for distribution. Howard admitted to possessing all the recovered contraband and told the police: “I’m always gonna go to jail for firearms. You feel me? I’m gonna have a gun on me.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division; and Mike Goldsmith, Interim Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr.
Assistant U.S. Attorneys William Jackson and Joe Depadilla, and Special Assistant United States Attorney Graham Stolle 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. 2:22-cr-2.
Newport News Teacher Sentenced for Importing EcstasyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced yesterday to two years in prison for importing MDMA, or Ecstasy, into the United States.
According to court documents, Andrew Myers, 39, a high school special education teacher, was importing MDMA into the United States from Germany and Spain. MDMA, sometimes referred to as Ecstasy, is an illegal narcotic. In February 2020, special agents with Homeland Security Investigations and detectives with the Newport News Police Department received information that a package containing MDMA was entering the United States and was addressed to Myers. The agents conducted a controlled delivery of the package to Myer’s residence. Myers denied any knowledge of the package.
In July 2021, agents located an additional package of MDMA that was entering the United States from Spain. The agents did a controlled delivery of the package to a post office box in Yorktown. When Myers arrived to retrieve the package he was arrested.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Acting Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; and Tira A. Hayward, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Eric M. Hurt 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. 4:22-cr-3.
New Mexico man indicted for attempting to provide material support to ISISRead the Press Release
ALBUQUERQUE, N.M. – Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Herman Leyvoune Wilson, also known as Bilal Mu’Min Abdullah, made an initial appearance in federal court today on an indictment charging him with attempting to provide material support to a designated foreign terrorist organization and attempting to obstruct, influence and impede at least one official proceeding.
A federal grand jury indicted Wilson, 45, of Albuquerque, on Aug. 23. Wilson will remain in custody pending an arraignment scheduled for Aug. 30.
According to the indictment and other court records, from Jan. 23, 2020, to Nov. 20, 2021, Wilson allegedly attempted to provide material support and resources to the Islamic State of Iraq and Syria (ISIS), a foreign terrorist organization. Wilson allegedly attempted to establish an “Islamic State Center” in New Mexico that would teach ISIS ideology, provide training in tactical maneuvers and martial arts, and serve as a safe haven for individuals preparing to travel and fight on behalf of ISIS in the United States and abroad.
Additionally, between Sept. 19, 2020, and October 2020, Wilson allegedly attempted to obstruct, influence and impede at least one official proceeding by commanding and inducing the destruction and concealment of records by shutting down an online platform. From May 2019 to September 2020, Wilson allegedly helped to administer an online platform to promote ISIS ideology, recruit others to ISIS ideology and discuss terrorist attacks in the United States and overseas. Wilson also allegedly used the online platform to promote the Islamic State Center and find potential like-minded individuals to join the center.
In September 2020, Kristopher Matthews and Jaylin Molina were arrested for providing material support to ISIS, and later pleaded guilty in the Western District of Texas. Matthews and Molina admitted that Wilson radicalized them to ISIS’s ideology, and that without Wilson’s influence, they would never have committed the crimes. When Matthews and Molina were arrested, Wilson allegedly instructed online platform members to destroy evidence of their use of the group. Matthews and Molina were sentenced in July 2022 to 20 years and 18 years in prison, respectively.
“Defending our country from terrorism is a core mission of the Department of Justice,” said United States Attorney Uballez. “We will not tolerate threats to our country from terrorist organizations like ISIS. We will vigorously prosecute anyone who attempts to provide material support to terrorists.”
“The FBI takes very seriously its role as America's primary federal law enforcement agency for investigating and preventing acts of international and domestic terrorism,” said FBI Special Agent in Charge Bujanda. “This investigation was the result of months of painstaking work by the FBI's Joint Terrorism Task Force, which consists of FBI special agents, intelligence analysts, other experts, and our federal, state, and local partners. Preventing terrorist attacks against Americans at home and abroad remains the FBI's top priority, and we will vigorously pursue investigations when an individual crosses the line from espousing particular views into planning or committing acts of violence.”
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Wilson faces up to 20 years in prison for each count.
The FBI Albuquerque Field Office investigated this case. Assistant U.S. Attorneys Jon K. Stanford, Nicholas Mote and Tavo Hall are prosecuting the case, with valuable assistance provided by Trial Attorney John Cella of the National Security Division’s Counterterrorism Section.
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New Mexico Man Indicted for Attempting to Provide Material Support to ISISRead the Press Release
A New Mexico man was arrested today for allegedly attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS) and attempting to obstruct, influence and impede at least one official proceeding.
A federal grand jury indicted Herman Leyvoune Wilson, aka Bilal Mu’Min Abdullah, 45, of Albuquerque, on Aug. 23. Wilson will remain in custody pending an arraignment scheduled for Aug. 30.
According to the indictment and other court records, from Jan. 23, 2020, to Nov. 20, 2021, Wilson allegedly attempted to provide material support and resources to ISIS, a designated foreign terrorist organization. Wilson allegedly attempted to establish an “Islamic State Center” in New Mexico that would teach ISIS ideology, provide training in tactical maneuvers and martial arts, and serve as a safe haven for individuals preparing to travel and fight on behalf of ISIS in the United States and abroad.
Additionally, between Sept. 19, 2020, and October 2020, Wilson allegedly attempted to obstruct, influence and impede at least one official proceeding by commanding and inducing the destruction and concealment of records by shutting down an online platform. From May 2019 to September 2020, Wilson allegedly helped to administer an online platform to promote ISIS ideology, recruit others to ISIS ideology and discuss terrorist attacks in the United States and overseas. Wilson also allegedly used the online platform to promote the Islamic State Center and find potential like-minded individuals to join the center.
In September 2020, Kristopher Matthews and Jaylin Molina were arrested for providing material support to ISIS and later pleaded guilty in the Western District of Texas. Matthews and Molina admitted that Wilson radicalized them to ISIS’s ideology, and that without Wilson’s influence, they would never have committed the crimes. When Matthews and Molina were arrested, Wilson allegedly instructed online platform members to destroy evidence of their use of the group. Matthews and Molina were sentenced in July 2022 to 20 years and 18 years in prison, respectively.
If convicted, Wilson faces up to 20 years in prison for each count.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Alexander M.M. Uballez for the District of New Mexico, and Special Agent in Charge Raul Bujanda of the FBI Albuquerque Field Office made the announcement.
The FBI Albuquerque Field Office investigated this case. Assistant U.S. Attorneys Jon K. Stanford, Nicholas Mote and Tavo Hall are prosecuting the case, with valuable assistance provided by Trial Attorneys Frank Russo, Jessica Fender and John Cella of the National Security Division’s Counterterrorism Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Miami Man Arrested and Charged with Bank Fraud and Identity TheftRead the Press Release
CLEVELAND – First Assistant U.S. Attorney Michelle M. Baeppler announced that Sedric J. Lewis, age 35, of Miami, Florida, was charged in a four-count indictment with two counts of bank fraud and two counts of aggravated identity theft in the Northern District of Ohio.
According to the indictment, in June 2019, Lewis used the personal identifying information of another individual to open a bank account with JPMorgan Chase Bank. In addition, the indictment alleges that in August 2019, Lewis deposited into the same JPMorgan Chase Bank account a fraudulent check bearing the forged signature of another individual.
Lewis was arrested on Thursday, Aug. 25, 2022, in Miami.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, a sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the FBI Cleveland Division and is being prosecuted by Special Assistant United States Attorney Jason W. White.
Maryland Man Sentenced to 32 Years in Prison for Sexually Abusing a Teenage GirlRead the Press Release
WASHINGTON – A 46-year-old man, formerly of Greenbelt, Maryland, was sentenced today to 32 years in prison for sexual exploitation of children and other charges stemming from sexual abuse that he committed against a minor girl in the District of Columbia and Maryland over more than two years. The victim was between the ages of 13 and 15 years old at the time.
The announcement was made by U.S. Attorney Matthew M. Graves of the District of Columbia, U.S. Attorney Erek L. Barron of the District of Maryland, State’s Attorney Aisha N. Braveboy of Prince George’s County, Maryland, and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division
The defendant, who is not named here to protect the privacy of the victim, pleaded guilty in November 2021, in the U.S. District Court for the District of Columbia, to two counts of sexual exploitation of a child, and second-degree child sexual abuse, with aggravating circumstances. He was sentenced by the Honorable Timothy J. Kelly. Following his prison term, he will be placed on supervised release for life. He also must register as a sex offender for the remainder of his life.
In a related case, involving the same victim, the defendant pleaded guilty in June 2022 in Prince George’s County to second-degree rape. He was sentenced to serve 20 years in prison for that offense.
The defendant admitted to sexually abusing a teenage girl, and recording it on a cellphone, but claimed that he was only doing so to “train” the victim to fight off would-be rapists. More than 200 such images and videos were discovered on the defendant’s cellphones. Additionally, when law enforcement took the defendant into custody on March 23, 2020, the victim disclosed that he had raped her earlier that day. He has been in custody ever since.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The FBI task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Significant assistance was provided by the FBI’s Baltimore Field Office.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant U.S. Attorneys Amy E. Larson and Angela Buckner of the District of Columbia, Assistant U.S. Attorneys Elizabeth G. Wright and Timothy F. Hagan of the District of Maryland, and Assistant State’s Attorney Niki Holmes, formerly of the State’s Attorney’s Office for Prince George’s County. Assistance was provided by Victim/Witness Advocate Yvonne Bryant.
Man and woman sentenced to 10 years in federal prison for fentanyl distributionRead the Press Release
A man and woman who conspired together to distribute fentanyl were sentenced this week in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Rodney W. Sippel sentenced Jennifer Canales, 31, and Ali Bashir Milad, 33, both of Tulsa, to 120 months in federal prison followed by five years of supervised release. The codefendants previously pleaded guilty to drug conspiracy.
On Jan. 28, 2021, Tulsa police officers executed a search warrant on Caneles’ residence. Officers located just over 600 grams of fentanyl, a pill press, a blender used to mix the drug, cutting agents, and scales used to weigh the product. They also found two firearms and ammunition. Canales told officers the residence was hers and that she knew that Milad, who lived there, sold drugs. Milad was later arrested.
On April 15, 2021, a second search warrant was conducted at the residence. Officers found Canales hiding inside the home. In total, officers located approximately 1,280 grams of Fentanyl contained in multiple bags inside the residence, nearly $23,000 in cash, and a ledger that Canales used in the drug trafficking operation.
The Drug Enforcement Administration and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case.
Leader of Baltimore Eight Tray Gangsta Crips Pleads Guilty to Federal Racketeering and Drug Conspiracy Charges, Including Three Homicides and Three Non-Fatal ShootingsRead the Press Release
Baltimore, Maryland – The leader of the Eight Tray Gangsta (ETG) Crips gang in Baltimore, Trayvon Hall, a/k/a “Tru,” and “G Tru,” age 31, of Baltimore, pleaded guilty today to racketeering and drug conspiracy charges.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
The ETG Crips were a violent subset of the Crip gang that originated in California in the 1970s, eventually operating on the streets and in correctional facilities in Maryland beginning in the 2000s. For many years, the ETG Crips controlled the drug trade in particular territories in Baltimore City, including the area around the intersection between West Baltimore Street and South Hilton Street in West Baltimore (the “Baltimore Hilton neighborhood”), the area around the intersection between West Lexington Street and North Fremont Avenue (the “Lexington Terrace neighborhood”), and the area around the intersection between Frankford Avenue and Sinclair Lane in North Baltimore (the “Frankford Sinclair neighborhood”). The ETG Crips members from the Baltimore Hilton and Lexington Terrace neighborhoods referred to themselves as the Baccwest ETG Crips—modeling themselves after the Baccwest ETG Crips in Los Angeles—and ETG Crips members from the Frankford Sinclair neighborhood called themselves the Nutty North Side ETG Crips. The two groups worked together for common criminal purposes.
According to his guilty plea, Trayvon Hall was the leader of the Baccwest ETG Crips in Baltimore, referred to as the “G” of the gang. In about 2013, Hall flew to California to meet with West Coast leaders of the ETG Crips and gain their official approval for his Baccwest ETG Crips set in Baltimore. The Baccwest ETG Crips operated street-level drug distribution “shops” primarily in the Baltimore Hilton neighborhood, the Lexington Terrace neighborhood and the Franklin Sinclair neighborhood, distributing heroin, cocaine, crack cocaine, and marijuana. Non-members of the gang who attempted to sell drugs in the ETG Crips’ territories were targeted for violence by ETG Crips members.
The ETG Crips used social media websites to assert their claim to drug territories, intimidate rival gangs and witnesses against gang members, and to enhance the status of the ETG Crips and of individual members within the gang. Members of the ETG Crips posted photos and rap videos to social media websites flaunting weapons and threatening to kill those who stood in the way of the gang. By participating in criminal activities in furtherance of the gang, particularly violent acts directed by the ETG Crips leadership, ETG Crips members earned respect from fellow members and maintained or advanced their position within the gang.
Hall admitted that he and his co-defendants sold drugs, including heroin and crack cocaine, and committed robberies to earn money for the enterprise. From May 2016 through November 2016, Hall and other ETG Crips conspired to murder members of the Black Guerilla Family (BGF) gang who operated a rival drug shop in the Lexington Terrace neighborhood. On June 23, 2016, ETG Crips members attempted to murder two BGF gang members, instead shooting two victims who were in the area at the time. On July 18, 2016, Hall murdered BGF member Albert Pittman, shooting him to death in the 4800 block of Midline Road. On November 11, 2016, in the 800 block of West Lexington Street, Hall opened fire on members of the rival BGF gang, killing BGF member Shyheim Brown and wounding two other victims. Immediately afterward, Hall sent an unindicted co-conspirator a series of text messages about the shooting, saying he had “Jus bashed the monkeys” (a derogatory term for members of BGF), and they “Wasn’t exspecting [sic] me be out early lmGCao [laughing my Gangster Crip ass off].”
Further, from July 2017 through July 2019, Hall and other members of the ETG Crips conspired to murder members of the Abington Avenue drug trafficking organization, whose territory the ETG Crips had taken over. Hall directed the ETG Crips to use violence to retaliate against anyone who refused to respect the boundaries of their newly claimed turf. Hall admitted that on July 6, 2018, he opened fire on members of the Abington Avenue organization who were playing dice in the unit block of Abington Avenue, killing Steven McKnight and wounding an additional victim. According to the plea agreement, Hall and other ETG members conspired to murder an individual who they believed had cooperated with law enforcement and threatened a witness who testified against a fellow gang member in a state murder trial.
Hall and the government have agreed that, if the Court accepts the plea agreement, Hall will be sentenced to 40 years in federal prison. U.S. District Judge Catherine C. Blake has not yet scheduled a sentencing date.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation and thanked the Drug Enforcement Administration, the ATF, the Maryland Attorney General’s Office, the Baltimore County Police Department, and the Anne Arundel County Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Peter J. Martinez and Kim Y. Oldham, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Latvian Individual Extradited for Securities Fraud and Wire Fraud in Cryptocurrency SchemeRead the Press Release
Earlier today, Ivars Auzins, a citizen of Latvia, was extradited to the United States on a six-count indictment charging him with wire fraud, securities fraud, and conspiracies to commit wire fraud and securities fraud in connection with the operation of eight companies that purported to offer, invest in or mine digital assets. Auzins will be arraigned on the indictment tomorrow in federal court in Brooklyn before the Honorable Roanne L. Mann.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the charges.
“Auzins perpetrated a brazen scheme in which he fleeced investors who funneled millions of dollars into fraudulent cryptocurrency,” stated United States Attorney Peace. “This Office will continue to vigorously investigate and prosecute those who lie and steal from investors, including those like the defendant who operate from abroad.” Mr. Peace thanked the Securities and Exchange Commission, New York Regional Office, for their assistance during the investigation.
As alleged in the indictment, Auzins, using aliases to conceal his identity, operated a series of entities the “Auzins Entities” that advertised through email campaigns, social media and websites dedicated to cryptocurrencies. The Auzins Entities purported to offer valuable investment opportunities, solicited investments and then effectively disappeared. Some of the Auzins Entities – Denaro and Bitroad Limited – purported to raise funds from investors through initial coin offerings (ICOs). Other Auzins Entities – Impressio Estate Ltd., Broi Investments Ltd., also known as Bankroi, ChangePro Pty Ltd., Gemneon Investments Limited and Lycovest Ltd. – purported to be cryptocurrency investment platforms that provided investors with different investment plans and profit rates. Another Auzins Entity – Innovamine – purported to offer investments in mining a number of cryptocurrencies, including Bitcoin and Ether.
As alleged, Auzins and co-conspirators induced investors to invest in the Auzins Entities through a series of material misrepresentations and omissions about the products and services that the Auzins Entities claimed to provide, the profits that investors would earn by investing in the Auzins Entities and the individuals who operated the Auzins Entities. For example, in its marketing materials, Denaro stated that its Chief Executive Officer, “Ron Ramsey,” previously was an executive at a technology company based in Ohio, its Chief Financial Officer, “Jeremy Boker,” obtained a degree from a university in Kentucky, and that it issued debit cards associated with a credit card company based in New York. These representations were false. After soliciting investors in its ICO, Denaro stopped its public advertising campaign, its website became publicly inaccessible, and its investors lost their investments.
Between approximately November 2017 and July 2019, individuals in the United States and elsewhere transferred at least $7 million in digital assets to the Auzins Entities. Shortly after receiving these investments, the Auzins Entities disappeared without providing their promised services.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney John O. Enright is in charge of the prosecution with assistance from Paralegal Jordi Martinez. The Justice Department’s Office of International Affairs worked with law enforcement partners in Latvia to secure the arrest and extradition of Auzins to the United States, and the U.S. Marshals Service carried out the extradition.
The Defendant:
IVARS AUZINS (also known as “Aivars Grauzdins”)
Age: 29
Riga, LatviaE.D.N.Y. Docket No. 21-CR-357 (ERK)
Las Vegas Man Indicted for Unlawful Manufacture and Sales of Privately Made Firearms, Including Machine Gun Conversion Devices, Without A Federal Firearms LicenseRead the Press Release
LAS VEGAS – Clarence Meekins (36) made his initial appearance today for allegedly possessing a machine gun and selling Privately Made Firearms (PMFs) — including machine gun conversion devices known as “Glock Switches” — without a Federal Firearms License. Meekins was previously convicted of two felonies in New York State.
Meekins is charged by indictment with one count of engaging in the business of dealing or manufacturing firearms without a license, two counts of illegal possession of a machine gun, and four counts of felon in possession of a firearm. U.S. Magistrate Judge Nancy J. Koppe scheduled a jury trial for October 17, 2022, before U.S. District Judge Andrew P. Gordon.
The indictment alleges that, from March 22 to April 28, 2022, Meekins manufactured, possessed, and sold 3-D printed unserialized PMFs and Glock Switches, which are designed to convert semi-automatic pistols to fire as a fully automatic weapon. Meekins manufactured and sold the weapons without the required Federal Firearms License. Meekins was convicted for Hobbs Act robbery and brandishing a firearm during a crime of violence in Nassau County, New York. These prior felony convictions prohibit Meekins from possessing any firearm.
If convicted, the statutory maximum penalties are five years in prison for engaging in the business of dealing or manufacturing firearms without a license; 10 years in prison for illegal possession of a machine gun; 10 years for felon in possession of a firearm; not more than three years of supervised release, and a fine.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF. Assistant U.S. Attorney Allison Reese is prosecuting the case.
The charges contained in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty.
If you have information about illegal firearms activity, you are urged to submit a tip to ATF by calling the hotline at 1-800-ATF-GUNS (1-800-283-4867) or through the ReportIt mobile app.
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Kissimmee Man Indicted for Receiving and Possessing Child Sex Abuse MaterialRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Dale Meyer Elliott (41, Kissimmee) with three counts of receipt of child sex abuse material and one count of possession of child sex abuse material. If convicted, Elliott faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison for each possession count and up to 20 years in federal prison for the possession count. The indictment also notifies Elliott that the United States intends to forfeit his cellphone, which is alleged to have been used to commit the charged offenses.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Martin County Sheriff’s Office and Osceola County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Awards Nearly $24 Million in Grants to State of Louisiana to Enhance Crime Victim Services and Compensation PaymentsRead the Press Release
U.S. Attorney Ronald C. Gathe, Jr. announced that the State of Louisiana has received $23,554,389 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to enhance crime victim services in the State and to enhance State compensation payments to eligible crime victims. Victims of Crime Act (VOCA) compensation funds provide financial assistance to Federal and State victims of crime. The funds are typically awarded by the State to local community-based organizations that provide direct services to crime victims.
The recipient of this award, the Louisiana Commission on Law Enforcement, is a foundation located in Baton Rouge dedicated to improving the operations of the criminal justice and juvenile justice systems and to promoting public safety by providing progressive leadership and coordination within the criminal justice community.
Justice Department Announces $49.85 Million in Office on Violence Against Women Grants to Support Legal Services and Related Programs for SurvivorsRead the Press Release
WASHINGTON – The Department of Justice has announced nearly $50 million in Office on Violence Against Women (OVW) grants to provide survivors of gender-based violence with access to legal services and improve effective coordination of justice systems impacting victim and family safety. Specifically, OVW awarded a total of $35,659,296 to 59 grantees under the Legal Assistance for Victims Program, which addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. In addition, earlier this month, OVW’s Justice for Families Program awarded $14,191,208 to 26 projects that aim to improve the response of the civil and criminal justice systems to families with a history of domestic violence. The Justice for Families Program also supports supervised visitation and safe exchange of children.
“These grants will help expand access to the services and support that are essential to bringing justice within reach for survivors of gender-based violence,” said Attorney General Merrick B. Garland. “The Department’s Office on Violence Against Women will continue its important work to empower survivors with the resources they need to navigate our justice system, including by expanding access to legal representation, language assistance, and court-related programs.”
“Legal services and systems, including family courts, have a tremendous impact on survivors’ and their families’ livelihood, wellbeing, and freedom,” said OVW Acting Director Allison Randall. “Meaningful representation for survivors is vital, but can be difficult to attain in the aftermath of violence, or when someone is still trying to find safety. Grantees under OVW’s Legal Assistance for Victims and Justice for Families Programs help survivors navigate complicated processes and potentially dangerous points along the way, including supervised visitation, protection orders, and divorce.”
In New Mexico, the Eight Northern Pueblos Council, Inc. will receive a grant award of $599,361 through the Legal Assistance for Victims Program. In addition to addressing survivors’ civil and criminal legal needs, the Legal Assistance for Victims Program expands pro bono legal assistance for survivors.
The Justice for Families Program also finances court and court-related programs, provides legal assistance for survivors, and supports training for court personnel, child protective services workers, and others.
Later this year, OVW will launch the new Expanding Legal Services Initiative (ELSI) under the Legal Assistance for Victims Grant Program. ELSI will support entities that do not yet have a legal representation program and need assistance establishing one. Grantees will receive specific training to help create a legal program from the ground up, while prioritizing racial equity and underserved communities. OVW will release the solicitation for this new initiative in the fall. Eligible applicants include nonprofit organizations and tribal governments or tribal organizations that intend to establish a program to provide legal representation to victims of sexual assault, domestic violence, dating violence, or stalking. OVW will provide additional details at upcoming informational virtual events and answer questions from participants. Registration for virtual events will be added as it becomes available: https://www.justice.gov/ovw/events.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Jury Convicts San Francisco Broker and Investor Victor Makras for Fraud in Real Estate LoanRead the Press Release
SAN FRANCISCO – A federal jury today convicted Victor Makras, a prominent San Francisco real estate broker and investor, of making false statements to a bank and of bank fraud tied to fraudulent representations made in a mortgage refinance loan application, announced United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Sean Ragan, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Mark H. Pearson. The verdict follows a two-week trial before United States Chief District Judge Richard Seeborg.
Victor Makras, 64, of San Francisco, was charged in a superseding indictment filed on May 31, 2022. The four criminal counts related to a mortgage refinance loan obtained by an associate of Makras and the associate’s wife. Those four counts charged Makras with conspiring to make a false statement to a bank; making false statements to a bank; conspiring to commit bank fraud; and bank fraud.
The jury convicted Makras of two counts: making false statements to a bank and bank fraud. The jury was unable to reach a verdict on the other two counts: conspiracy to make false statements to a bank and conspiracy to commit bank fraud.
Trial evidence showed that Makras defrauded Quicken Loans, a financial lending institution, in a $1.3 million real estate mortgage loan secured by property owned by the Makras associate, who was the borrower on the loan. In the application for the $1.3 million loan, Makras represented to Quicken Loans a falsely inflated debt amount of $915,000 that Makras claimed the borrower owed to Makras and his investors. The falsely inflated debt allowed the borrower to conceal other debts from Quicken. The other outstanding debts included over $89,000 owed to a contractor for extensive remodel work on the property that was provided to the borrower without contemporaneous billing. Another debt concealed from the company was a $70,000 unsecured personal loan made by Makras to the borrower.
In summary, the evidence showed that Makras made false representations on the loan application that the borrower was indebted to Makras in an inaccurate, inflated amount of $915,000, concealing from Quicken the construction debt and the personal loan.
The federal jury today convicted Makras of one count of making false statements to a bank in violation of 18 U.S.C. § 1014, which carries a maximum possible penalty of 30 years imprisonment and a $1,000,000 fine. The jury also convicted Makras of one count of bank fraud, in violation of 18 U.S.C. §§ 1344(1), (2), which carries a maximum possible penalty of 30 years imprisonment and a fine of $1,000,000 or not more than the greater of twice the gross gain or gross loss. However, any sentence will be imposed by the court only after its consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
Makras remains out of custody pending sentencing. No future date has yet been set.
The charges contained in the superseding indictment against the co-defendant of Makras, and the charges on which the jury did not reach a verdict, remain only allegations. As in any criminal case, a defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorneys David Ward and Zachary Abrahamson prosecuted the case at trial with the assistance of Veronica Hernandez and Tina Rosenbaum. The case is being investigated by the FBI and the Internal Revenue Service-Criminal Investigation (IRS-CI).
This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco. To date, twelve individuals have been charged, including high-ranking San Francisco public official Mohammed Nuru who was sentenced yesterday to seven years in federal prison. Multiple city contractors and facilitators have also been charged.
Iowa Woman Sentenced to Prison for Email ThreatsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ADRIAN JOHNSON, 32, of Waterloo, Iowa, was sentenced today by U.S. District Kari A. Dooley in Bridgeport to 22 months of imprisonment, followed by three years of supervised release, for sending threatening emails to a Connecticut company.
According to court documents and statements made in court, in August 2020, as part of a dispute with a Connecticut financial company, Johnson sent email messages to employees of the company in which she threatened to locate, confront and murder the company’s president. Johnson was arrested in Kansas City, Missouri, on August 27, 2020.
On June 3, 2022, Johnson pleaded guilty to making interstate threats. She is currently detained.
This matter was investigated by the Federal Bureau of Investigation in New Haven and Kansas City. The case was prosecuted by Assistant U.S. Attorney Lauren C. Clark.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 26 was:
Alexis Rae Walker, 27, of Billings, on charges of possession of unregistered firearm, prohibited person in possession of firearm and ammunition and receipt of firearm by person under indictment. If convicted of the most serious crime, Walker faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Walker was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-86.
Appearing on Aug. 25 was:
Chad Leroy Stone, 45, of Emigrant, on charges of prohibited person in possession of firearm and ammunition. If convicted of the most serious crime, Stone faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Stone was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Park County Sheriff’s Office investigated the case. PACER case reference. 22-93.
Appearing on Aug. 24 was:
Gregory Richard Boyd, 39, of Billings, on charges of prohibited person in possession of firearm and ammunition. If convicted of the most serious crime, Boyd faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Boyd was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-121.
Appearing on Aug. 22 was:
Armando Luis Gonzalez, Jr., 29, a transient, on charges of bank fraud and aggravated identity theft. If convicted of the most serious crime, Gonzalez faces a maximum of 30 years in prison, a $250,000 fine and five years of supervised release and a mandatory minimum two years in prison, consecutive to any other sentence, on aggravated identity theft. Gonzalez was detained pending further proceedings. Homeland Security Investigations and the Billings Police Department investigated the case. PACER case reference. 22-87.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 25 was:
Garrick Allen Robinson, Jr., 20, of Wolf Point, on charges of sexual abuse. If convicted of the most serious crime, Robinson faces a maximum of life in prison, a $250,000 fine and five years to life of supervised release. Robinson was detained pending further proceedings. The FBI and Fort Peck Law Enforcement Services investigated the case. PACER case reference. 22-62.
Appearing on Aug. 23 was:
Jorge Perez, 41, of Spokane, Washington, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Perez faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Perez was detained pending further proceedings. The FBI, Homeland Security Investigations, Great Falls Police Department and Cascade County Sheriff’s Office investigated the case. PACER case reference. 22-60.
Thomas Jeff Richardson, 49, of Great Falls, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Richardson faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Richardson was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Cascade County Sheriff’s Office investigated the case. PACER case reference. 22-61.
Jordan Joseph Morgan, 30, of Browning, on charges of involuntary manslaughter. If convicted of the most serious crime, Morgan faces a maximum of eight years in prison, a $250,000 fine and three years of supervised release. Morgan was released pending further proceedings. The FBI investigated the case. PACER case reference. 22-51.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Doctor Indicted for Tax CrimesRead the Press Release
A federal grand jury in Chicago returned an indictment today charging an Illinois doctor with tax evasion, filing false tax returns and assisting in the preparation and filing of false tax returns for his children.
According to the indictment, from 2011 through 2017 Krishnaswami Sriram, of Lake Forest, Illinois, attempted to evade payment of approximately $1.6 million in taxes, penalties and interest he owed to the IRS. Among other evasive acts, Sriram allegedly caused his children to be the nominal owners of two rental properties he owned and operated, while still continuing to receive income from those properties. He also allegedly transferred more than $600,000 from his U.S. bank accounts into bank accounts in India that he controlled.
Sriram allegedly filed false individual income tax returns that did not report his income from the rental properties and did not disclose his ownership interest in the foreign accounts. He also allegedly filed tax returns for his children that falsely reported the income and expenses related to the rental properties. As part of an attempted offer in compromise, Sriram allegedly knowingly submitted false documents to the IRS that omitted some of his assets, including an investment account in the United States, investment and bank accounts in India and multiple rental properties.
If convicted, Sriram faces up to five years in prison for tax evasion, and up to three years for each count of filing a false tax return and aiding in the filing of a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. He thanked the U.S. Attorney’s Office for the Northern District of Illinois and the Chicago Healthcare Fraud Strike Force of the Justice Department’s Criminal Division for their substantial assistance in this matter.
IRS-Criminal Investigation, the FBI and the Department of Health and Human Services are investigating the case.
Trial Attorney Sara Henderson of the Justice Department’s Tax Division 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.
Huntington Man Sentenced to Prison for Child PornographyRead the Press Release
BECKLEY, W.Va. – Dakota Anderson, 25, of Beckley, was sentenced today to six years and six months in prison, to be followed by 25 years of supervised release, for possession of prepubescent child pornography. Anderson must also register as a sex offender.
According to court documents and statements made in court, law enforcement investigators received multiple CyberTipline reports from the National Center for Missing and Exploited Children (NCMEC) in May and August 2020 regarding possible child pornography uploaded using the MeWe social media platform and the Dropbox file hosting service. The resulting investigation traced the uploads to Anderson, and he was arrested. Anderson admitted to possessing approximately 85 videos and 715 images depicting minor children engaged in sexually explicit conduct, including images of sadistic abuse. Anderson admitted that he received and transmitted these images and videos via the internet, and that he would view and store them on his cell phone.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Kathleen Robeson prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-145.
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Honduran Man Pleads Guilty to Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that OSCAR NOEL DUENAS-RODRIGUEZ, age 48, a native of Honduras, pled guilty on August 24, 2022 to a one-count bill of information charging him with illegally using a social security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to a document signed in open court, DUENAS-RODRIGUEZ presented a fraudulent driver’s license and social security card while attempting to take a safety class necessary to obtain employment at a critical infrastructure facility in the Eastern District of Louisiana. He purchased the fraudulent documents in Lumberton, Mississippi.
DUENAS-RODRIGUEZ faces a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, a term of supervised release of up to three (3) years, and a mandatory special assessment fee of $100.00. Sentencing is set for November 29, 2022.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Harvey Man Pleads Guilty to Producing Videos of Child Sexual AbuseRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that JAYDEN D. D. HALL, age 21, of Harvey, Louisiana, pled guilty to federal crimes involving child exploitation.
HALL pled guilty to one count of Production of Materials Involving the Sexual Exploitation of Children, in violation of Title 18, United States Code, Sections 2251(a) and (e); and three counts of Transportation of Materials Involving the Sexual Exploitation of Children, in violation of Title 18, United States Code, Sections 2252(a)(1) and (b)(1). According to court documents, HALL created new child sexual abuse videos and then used several social media accounts to distribute both those videos and other child sexual abuse material through the internet.
For the production count, HALL faces a mandatory minimum sentence of fifteen years and a maximum sentence of thirty years of imprisonment. For each transportation count, HALL faces a mandatory minimum sentence of five years and a maximum sentence of twenty years of imprisonment. HALL also faces a term of supervised release of no less than five years and up to life after his release from prison. HALL faces a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person as a result of these offenses, and payment of a $100 mandatory special assessment fee for each count.
Judge Jay C. Zainey set sentencing for November 6, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the following agencies in this matter: the Louisiana Bureau of Investigation; the U.S. Department of Homeland Security, Homeland Security Investigations; the Jefferson Parish Sheriff’s Office, Strategic Engagement Team; and the New Orleans Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Nicholas D. Moses.
Harrisburg Man Sentenced to 256 Months’ Imprisonment for Committing Armed Bank Robberies and Related OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tashan Layton, age 32, of Harrisburg, Pennsylvania, was sentenced on August 24, 2022, to 256 months’ imprisonment by United States District Court Judge Jennifer P. Wilson for armed bank robbery, brandishing a firearm during the commission of a crime of violence, and violating the conditions of his supervised release that had been imposed for a previous federal bank robbery conviction.
According to United States Attorney Gerard M. Karam, Layton robbed the Santander Bank in Oakhurst Plaza, Dauphin County on July 6, 2019, and again on October 28, 2019, stealing more than $67,000 during these robberies. Layton also attempted to rob the MidPenn Bank on North Second Street in Harrisburg, in July 2019, and the Americhoice Credit Union in Camp Hill, on December 31, 2019. Layton possessed and brandished a Ruger .45 caliber semi-automatic handgun during and in relation to the robbery offenses.
Layton pleaded guilty to robbing the Santander Bank and to using and brandishing a firearm during both of the robberies. Layton previously served a seven-year federal sentence for bank robbery, and was released from prison in that case approximately one month before he robbed the Santander Bank in July 2019.
In addition to the 235-month sentence Judge Wilson imposed for the robbery and firearm offenses, she sentenced Layton to a consecutive 21-months’ imprisonment for violating the terms of supervised release that he had been serving at the time he committed the robberies.
The case was investigated by the FBI with assistance by the Harrisburg Police Bureau, the Susquehanna Township and Lower Allen Township Police Departments. AUSA Christian Haugsby prosecuted the case.
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Former Tennessee Law Enforcement Officer Sentenced for Federal Civil Rights OffensesRead the Press Release
A former law enforcement officer in Chattanooga, Tennessee was sentenced today to six years in prison and two years of supervised release for using excessive force against arrestees, announced Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee and Special Agent in Charge Joseph E. Carrico of the FBI Knoxville Field Office.
Anthony “Tony” Bean, 62, was convicted after trial of using excessive force against arrestee C.G. on two occasions during C.G.’s arrest in 2014, while he was the chief of the Tracy City Police Department in Tracy City, Tennessee. In addition, Bean was convicted of using excessive force against arrestee F.M. during F.M.’s arrest in 2017, while he was the chief deputy of the Grundy County Sheriff’s Office in Grundy County, Tennessee.
In June 2021, the court heard evidence over the course of three days that showed that, during C.G.’s arrest in the Tracy Lakes area of Grundy County in 2014, Bean repeatedly punched C.G. in the face while C.G. was handcuffed and compliant, causing C.G. pain and other injuries. The court also heard evidence that, during F.M.’s arrest Grundy County in 2017, Bean punched F.M. in the face while F.M. was compliant, causing pain and other injuries. The court also heard evidence that Bean bragged about using excessive force against victims and failed to report his uses of force.
“Law enforcement officers who violate victims’ civil rights also violate the trust of their communities,” said Assistant Attorney General Clarke. “The Department of Justice is committed to holding accountable those officers who abuse their authority.”
“Nobody is above the law,” said U.S. Attorney Hamilton. “The defendant, Anthony “Tony” Bean abused his authority and violated the civil rights of arrestees by physically assaulting them while they were restrained and not posing any threat. A sentence of 72 months sends a strong message to the community that the abuse of arrestees will not be tolerated, and law enforcement officers who break the law will be held accountable for their actions.”
“When an officer betrays the oath to protect and serve, the public is put at risk and the law enforcement community is tarnished,” said Special Agent in Charge Carrico. “The public has a right to trust that officers will do the right thing. When they don't, the FBI remains committed to investigate and bring them to justice.”
The FBI Knoxville Field Division investigated the case. Trial Attorneys Kathryn E. Gilbert and Andrew Manns of the Justice Department’s Civil Rights Division and Assistant U.S Attorney James Brooks for the Eastern District of Tennessee prosecuted the case.
Former Tennessee Law Enforcement Officer Sentenced for Federal Civil Rights OffensesRead the Press Release
Chattanooga, Tennessee – On August 26, 2022, former law enforcement officer Anthony “Tony” Bean (61), currently of Altamont, Tennessee, was sentenced by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga to 72 months in prison.
Tony Bean was convicted of using excessive force against arrestee C.G. on two occasions during C.G.’s arrest in 2014, while Bean was the Chief of the Tracy City Police Department in Tracy City, Tennessee, and of using excessive force against arrestee F.M. during F.M.’s arrest in 2017, while Bean was the Chief Deputy of the Grundy County Sheriff’s Office in Grundy County, Tennessee, in violation of Title 18 U.S.C. § 242. Following his imprisonment, Bean will be on supervised release for 24 months.
In June of 2021, the court heard evidence over the course of three days that showed that, during C.G.’s arrest in the Tracy Lakes area of Grundy County in 2014, Bean repeatedly punched C.G. in the face while C.G. was handcuffed and compliant, causing C.G. pain and other injuries. The court also heard evidence that, during F.M.’s arrest Grundy County in 2017, Bean punched F.M. in the face while F.M. was compliant, causing pain and other injuries. The court also heard evidence that Bean bragged about using excessive force against victims and failed to report his uses of force.
Deputy Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Eastern District of Tennessee Francis M. (Trey) Hamilton III, and FBI Knoxville Special Agent in Charge Joseph E. Carrico made the announcement.
“Law enforcement officers who violate victims’ rights also violate the trust of their communities,” said Deputy Attorney General Kristen Clarke. “The Department of Justice will hold accountable those officers who abuse their authority, wherever they may be.”
“Nobody is above the law,” said U.S. Attorney Francis M. Hamilton. “The defendant, Anthony “Tony” Bean abused his authority and violated the civil rights of arrestees by physically assaulting them while they were restrained and not posing any threat. A sentence of 72 months sends a strong message to the community that the abuse of arrestees will not be tolerated, and law enforcement officers who break the law will be held accountable for their actions.”
"When an officer betrays the oath to protect and serve, the public is put at risk and the law enforcement community is tarnished, said Special Agent in Charge Joseph E. Carrico. "The public has a right to trust that officers will do the right thing. When they don't, the FBI remains committed to investigate and bring them to justice."
This case was investigated by the Knoxville Division of the FBI and was prosecuted by Trial Attorneys Kathryn E. Gilbert and Andrew Manns of the Justice Department’s Civil Rights Division and Assistant United States Attorney James Brooks of the U.S. Attorney’s Office for the Eastern District of Tennessee.
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Former Tennessee Law Enforcement Officer Sentenced for Federal Civil Rights OffensesRead the Press Release
Chattanooga, Tennessee – On August 26, 2022, former law enforcement officer Anthony "Tony" Bean (61), currently of Altamont, Tennessee, was sentenced by the Honorable Travis R. McDonough, in the United States District Court for the Eastern District of Tennessee at Chattanooga to 72 months in prison.
Tony Bean was convicted of using excessive force against arrestee C.G. on two occasions during C.G.’s arrest in 2014, while Bean was the Chief of the Tracy City Police Department in Tracy City, Tennessee, and of using excessive force against arrestee F.M. during F.M.’s arrest in 2017, while Bean was the Chief Deputy of the Grundy County Sheriff’s Office in Grundy County, Tennessee, in violation of Title 18 U.S.C. § 242. Following his imprisonment, Bean will be on supervised release for 24 months.
In June of 2021, the court heard evidence over the course of three days that showed that, during C.G.’s arrest in the Tracy Lakes area of Grundy County in 2014, Bean repeatedly punched C.G. in the face while C.G. was handcuffed and compliant, causing C.G. pain and other injuries. The court also heard evidence that, during F.M.’s arrest Grundy County in 2017, Bean punched F.M. in the face while F.M. was compliant, causing pain and other injuries. The court also heard evidence that Bean bragged about using excessive force against victims and failed to report his uses of force.
Deputy Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Eastern District of Tennessee Francis M. (Trey) Hamilton III, and FBI Knoxville Special Agent in Charge Joseph E. Carrico made the announcement.
"Law enforcement officers who violate victims’ rights also violate the trust of their communities," said Deputy Attorney General Kristen Clarke. "The Department of Justice will hold accountable those officers who abuse their authority, wherever they may be."
"Nobody is above the law," said U.S. Attorney Francis M. Hamilton. "The defendant, Anthony "Tony" Bean abused his authority and violated the civil rights of arrestees by physically assaulting them while they were restrained and not posing any threat. A sentence of 72 months sends a strong message to the community that the abuse of arrestees will not be tolerated, and law enforcement officers who break the law will be held accountable for their actions."
"When an officer betrays the oath to protect and serve, the public is put at risk and the law enforcement community is tarnished," said Special Agent in Charge Joseph E. Carrico. "The public has a right to trust that officers will do the right thing. When they don't, the FBI remains committed to investigate and bring them to justice."
This case was investigated by the Knoxville Division of the FBI and was prosecuted by Trial Attorneys Kathryn E. Gilbert and Andrew Manns of the Justice Department’s Civil Rights Division and Assistant United States Attorney James Brooks of the U.S. Attorney’s Office for the Eastern District of Tennessee.
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Former St. Louis Board of Alderman president and a former alderman plead guilty to bribery, other chargesRead the Press Release
ST. LOUIS – The former president of the St. Louis Board of Alderman, along with a former alderman, pleaded guilty Friday to all charges against them and admitted accepting bribes to misuse their official positions in schemes that ran from 2020 through March of 2022. The alderman also admitted to committing insurance fraud in a separate case.
Lewis Reed, the former board president, pleaded guilty in front of U.S. District Court Judge Stephen R. Clark to two bribery-related charges.
Former 22nd Ward Alderman Jeffrey L. Boyd pleaded guilty in front of Judge Clark in a separate hearing to two bribery-related charges related to a land purchase in his ward and two counts of wire fraud in an unrelated insurance fraud scheme.
Reed admitted accepting cash bribes from a businessman, identified in court documents as “John Doe,” to help Doe obtain Minority Business Enterprise certification and win city trucking and hauling contracts. In total, Reed accepted $6,000 in cash and $3,500 in campaign contributions for helping Doe.
Reed also admitted accepting a total of $9,000 in cash bribes to get a property tax abatement for a Doe-owned property located in the ward of another former alderman, John Collins-Muhammad. Reed and Collins-Muhammad, who pleaded guilty Tuesday to charges related to that bribery scheme, worked together to pass the board bill providing the property tax abatement.
Boyd admitted accepting a total of $9,500 in cash bribes from Doe in exchange for the misuse of his official position. Boyd helped Doe obtain a commercial property on Geraldine Avenue in Boyd’s ward from the city’s Land Reutilization Authority by convincing LRA staff to accept Doe’s $14,000 bid. The LRA initially listed the property as worth $50,000.
In addition to the cash, Boyd accepted free repairs from Doe for two vehicles owned by Boyd.
Boyd then issued an aldermanic letter of support for a property tax abatement for Doe’s property, helped Doe prepare a tax abatement application and submitted and sponsored a board bill which provided a substantial tax abatement for the property.
The insurance fraud scheme occurred after a Jan. 17, 2021 vehicle accident at Doe’s used car lot in Jennings, Missouri. The crash damaged vehicles including three cars owned by Doe and one owned by Boyd’s used car company, The Best Place Auto Sales on Dr. Martin Luther King Drive in St. Louis, that was there for repairs.
After Doe learned his insurance would not cover the damage to his vehicles, Boyd suggested falsely claiming that his company owned them.
On Jan. 21, 2021, Boyd falsified and backdated vehicle sales records and Missouri Department of Revenue documents claiming that Boyd had paid $22,000 for the vehicles on Jan. 2. Doe’s insurance company denied the claims, and the pair then decided to submit the claim under Boyd’s company’s insurance and split any resulting proceeds. Boyd also falsely attempted to claim a $200 daily storage fee for the damaged vehicles. Boyd’s insurance company ultimately rejected the claim, despite his attempt to have his insurance agent intervene.
Reed and Boyd are scheduled to be sentenced December 6. One of Reed and Boyd’s bribery charges carries a 10-year maximum and the other has a five-year maximum. Each charge could also result in a $250,000 fine. Boyd’s wire fraud charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Both will be required to pay restitution equal to the value of the cash bribes and other things of value received during their schemes.
The FBI investigated the case. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.
Lewis Reed plea agreement Jeffrey Boyd 296 plea agreement Jeffrey Boyd 297 plea agreementFormer Postal Worker Pleads Guilty to Mail Theft from Kenner Post OfficeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that JOSHUA ADAMS, age 30, from Slidell, Louisiana, pled guilty on August 24, 2022 after being charged in a one count bill of information with Mail Theft, a violation of Title 18, United States Code, Section 1708.
The bill of information charged ADAMS with stealing an Express Mail Package from the North Kenner Postal Station on December 31, 2020. In papers signed in open court, ADAMS admitted to stealing the package from a secured steel cage in the post office and hiding it under his shirt when he exited the building to the parking lot.
ADAMS faces up to five (5) years incarceration, up to a $250,000 fine, restitution, up to three (3) years of supervised release and a $100 mandatory special assessment fee. Sentencing is set for November 30, 2022 before U.S. District Judge Lance Africk.
U.S. Attorney Evans praised the work of the Office of Inspector General of the United States Postal Service in investigating the matter. The case is being handled by Assistant United States Attorney Carter K.D. Guice Jr.
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Former NBA Player Terrence Williams Pleads Guilty to Defrauding the NBA Players’ Health and Welfare Benefit PlanRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that TERRENCE WILLIAMS pled guilty to conspiracy to commit health care and wire fraud, and aggravated identity theft, in connection with a scheme to defraud the National Basketball Association (“NBA”) Players’ Health and Welfare Benefit Plan (the “Plan”). WILLIAMS pled guilty before U.S. District Judge Valerie E. Caproni. Sentencing is scheduled for January 25, 2023.
U.S. Attorney Damian Williams said: “Williams led a scheme involving more than 18 former NBA players, a dentist, a doctor, and a chiropractor, to defraud the NBA Players’ Health and Welfare Benefit Plan of millions of dollars. Williams also impersonated others to help him take what was not his—money that belonged to the Plan. I thank our law enforcement partners in the FBI for their hard work investigating this pervasive scheme.”
According to the Indictment, public court filings, and statements made in court:
The Plan is a health care plan providing benefits to eligible active and former players of the NBA and their family members. From at least 2017 through at least 2021, WILLIAMS, and more than a dozen others, engaged in a widespread scheme to defraud the Plan by submitting and causing to be submitted fraudulent claims for reimbursement of medical and dental services that were not actually rendered. Over the course of the scheme, the defendants submitted and caused to be submitted to the Plan false claims totaling at least approximately $5 million.
WILLIAMS orchestrated the scheme to defraud the Plan. WILLIAMS recruited other Plan participants to defraud the Plan by offering to provide them with false invoices to support their fraudulent claims. WILLIAMS’s co-defendants, including a dentist in California and a doctor in Washington State, provided WILLIAMS with fraudulent invoices that WILLIAMS sent to other co-conspirators. WILLIAMS also recruited non-medical professionals to copy invoices made by medical offices, which WILLIAMS provided to co-conspirators and were used to defraud the Plan. WILLIAMS conspired with others to submit fraudulent claims to the Plan in exchange for kickback payments to WILLIAMS of at least $300,000.
To verify that certain services were medically necessary, the Plan sometimes requires participants to provide, from a medical provider, a letter of medical necessity establishing that necessity of the provided services. WILLIAMS fraudulently created and transferred letters of medical necessity for three co-conspirators. Those letters were unusual in several respects: they were not on letterhead, contained unusual formatting, had grammatical errors, and one of the letters misspelled a purported patient’s name.
WILLIAMS also impersonated others in furtherance of the scheme. WILLIAMS pretended to be employees of the Plan’s administrative manager. In one instance, WILLIAMS created an email account designed to appear as an email account used by the Plan’s administrative manager. WILLIAMS used that account to attempt to frighten a co-defendant so that the co-defendant would re-engage with WILLIAMS and would pay kickback to WILLIAMS.
On other occasions, WILLIAMS used another email account he created to threaten another co-defendant—a doctor who created fraudulent invoices for WILLIAMS. WILLIAMS used this email account to pretend to be employees of the Plan’s administrative manager and demand that this co-defendant pay WILLIAMS a “fine” or the “employees” would tell the authorities about the submission of fraudulent invoices. Through these threats and deception, WILLIAMS obtained approximately $346,000 from this particular co-defendant.
In or about April 2022, after WILLIAMS was charged and arrested in this case, and while on pretrial release, WILLIAMS texted threats to a witness including that the witness was “talking way to[o] f[---]ing much,” to “shut the f[--]k up,” and “me spitting in your face is exactly what you’ll see.” Following a motion by the Government on May 6, 2022, as a result of this obstructive conduct, Judge Caproni remanded WILLIAMS.
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WILLIAMS, 35, of Seattle, Washington, pled guilty to one count of conspiracy to commit health care and wire fraud, which carries a maximum term of twenty years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison. As part of his guilty plea, WILLIAMS agreed to pay restitution of $2,500,000 to the Plan and to forfeit $653,672.55 to the United States.
The sentencing of WILLIAMS is scheduled for January 25, 2023, before Judge Caproni.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Ryan B. Finkel and Daniel G. Nessim are in charge of the prosecution.
Former Hillandale Farms Accountant Pleads Guilty in $6.8 Million Embezzlement SchemeRead the Press Release
PITTSBURGH - A resident of Canonsburg, Pennsylvania, pleaded guilty in federal court to charges of fraud conspiracy, money laundering conspiracy, and tax fraud, United States Attorney Cindy K. Chung announced today.
Jonathan A Weston, age 58, pleaded guilty on Aug. 23, 2022, to three counts before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the court was advised that from October 2005 to January 2019, Weston, a former accountant for Hillandale Farms Co. located in Greensburg, Pennsylvania, engaged in a scheme with his personal secretary and company bookkeeper known as VP, to embezzle approximately $6.8 million dollars from Hillandale Farms, and then launder the stolen money businesses they both controlled, to purchase collectible cars and real estate and pay for personal expenditures.
According to information provided to the court, both Weston and VP laundered millions of stolen funds for themselves. Weston purchased, personally or through a Cougar Holdings, a company he owned, a 2013 Honda Pilot SUV, 2003 Lexus SC convertible, a 2010 Lexus LX5 SUV, a 2008 Aston Martin Vantage convertible, a 2013 Lexus GX6 SUV, a condominium in Gateway Towers in downtown Pittsburgh, in addition to hundreds of thousands of dollars used for the operation of several car washes and Katie’s Kandy stores, which he owned. VP used the stolen funds to purchase a custom 1933 Ford Model 40 coupe, a 2013 Morgan 3-wheeler, a 2010 Bennington pontoon boat and a 2014 Yamaha wave runner with trailers, and thousands of dollars in credit card expenses. In 2019, VP died.
Finally, the court was informed that between 2013 and 2018, Weston also either failed to file, or filed false federal personal income tax returns. As alleged in Count 5, Weston filed a false income tax return in which he underreported approximately $566,000 in stolen income. All told, during these years, Weston owed nearly $1.2 million in taxes to the IRS which included stolen Hillandale monies.
Judge Hardy scheduled sentencing for Jan. 3, 2023, at 10:00 a.m. The law provides for a total sentence of 58 years in prison, a fine of $2,550,000, 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 Judge continued the defendant on bond.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Jonathan Weston.
Financial Institutions, Law Enforcement Agencies, and State and Federal Prosecutors Unite to Raise Awareness About Elder Fraud and Other Financial ScamsRead the Press Release
SPRINGFIELD, Ill. – In an effort to protect some of our most vulnerable citizens, financial institutions and federal, state, and local law enforcement agencies in Springfield are joining together to help educate and prevent financial crimes, especially those committed against the elderly. The effort includes a series of educational events at financial institutions and a partnership with Crimestoppers between July 27, 2022, and September 30, 2022, to both raise awareness regarding these schemes and to assist with the apprehension and prosecution of fraudsters.
According to the Federal Bureau of Investigation and the American Association of Retired Persons, Americans who are 50 years and older lost nearly $3 billion dollars to cybercrime in 2021, which represented a 62% increase from 2020. All other age groups also saw increasing rates of fraud. Almost a quarter of all losses were borne by people over 60 years of age. Confidence fraud, including grandparent, romance, and relationship scams more generally, was the costliest type of scam. Seniors in particular are often susceptible to fraudsters impersonating various types of people and ultimately asking for money. Cryptocurrency has exacerbated the problem.
Signs of financial exploitation include an elder customer’s sudden change in banking activity including frequent ATM withdrawals, wire transactions, gift card purchases, or cryptocurrency purchases; a nervous or confused senior on the phone or in the bank; an elder customer who exits and immediately returns to the lobby; and elders who are elusive with details about why and to whom they are sending money or are confused about “missing funds.”
If a senior or friend or relative of a senior believes a senior is at risk of imminent danger or financial exploitation, they should call 9-1-1. Reports of financial exploitation and abuse should be reported to the non-emergency number at the Springfield Police Department (217-788-8311.) The Adult Protective Services Hotline number to report elder fraud is 866 800-1409. Elder fraud may also be reported to the Illinois Attorney General’s Office at 800-243-5377. Internet-based fraud should be reported to the FBI’s Internet Crime Complaint Center IC3, https://www.ic3.gov/Home/FileComplaint. Additional useful information about elder frauds and scams is available at www.uspis.gov and www.ftc.gov.
Banks and law enforcement agencies participating in the campaign to prevent fraud include: the Bank of Springfield; Heartland Credit Union; Alliance Community Bank; Security Bank; the U.S. Attorney’s Office for the Central District of Illinois; Sangamon County States Attorney; Federal Bureau of Investigation, Springfield Office; Illinois Attorney General; Sangamon County Sheriff’s Office; and the Springfield Police Department.
Federal Law Enforcement Officials Warn of "Rainbow Fentanyl" Appearing in OregonRead the Press Release
PORTLAND, Ore.—With at least two notable seizures in the last several days in the Portland Metropolitan Area, officials from the U.S. Attorney’s Office for the District of Oregon and U.S. Drug Enforcement Administration are warning Oregonians to be on the lookout for “rainbow fentanyl,” a brightly-colored version of the highly-toxic synthetic opioid responsible for hundreds of fatal overdoses every day in the United States.
Rainbow fentanyl has appeared recently in several forms in cities across the country. A version seized recently in the Portland area resembles thick pieces of brightly-colored sidewalk chalk. Some versions seized elsewhere in pill or tablet form resemble candy.
If you or someone you know encounter any version of fentanyl, please refrain from handling it and call 911 immediately.
“We urge all Oregonians to be on the lookout for fentanyl in our community and respect the highly-toxic nature of this substance,” said Steve Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the U.S. Attorney’s Office for the District of Oregon. “Fentanyl is commonly disguised in fake prescriptions pills. If you find or come in contact with pills not dispersed by a licensed pharmacist, assume they are fake and potentially lethal. Fake pills are indistinguishable from real pills.”
“Fentanyl is the deadliest drug threat we face today,” said DEA Acting Special Agent in Charge Jacob D. Galvan from the Seattle Field Division. “It doesn’t matter what color, shape or form it comes in; just two milligrams of fentanyl – the equivalent of 10 to 15 grains of salt - is enough to kill someone. DEA’s Portland Office is seizing record amounts of fentanyl and we will continue this important work because we know American lives are at stake.”
Opioid abuse affects communities across the nation. Provisional data from the Centers for Disease Control and Prevention (CDC) indicate that there were more than 107,000 fatal drug overdoses in the U.S. in 2021, an increase of nearly 15% from the previous year. Synthetic opioids (primarily fentanyl) accounted for more than three quarters of these deaths. Drug overdose continues to be the leading cause of injury or death in the United States.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.
If you are in immediate danger, please call 911.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Photo of Loose Rainbow Fentanyl
Photo of Bagged Rainbow Fentanyl in Hand for ScaleFactoring Scheme Lands Canyon Lake Man in Prison with Hefty Restitution and Forfeited AssetsRead the Press Release
SAN ANTONIO – A Canyon Lake man was sentenced yesterday to 97 months in prison and over $8.9 million in restitution for his role in a scheme to defraud several San Antonio financial institutions. He was also ordered to pay a $2.9 million money judgment for the proceeds derived from his criminal activity.
According to court documents, Ronald Wayne Schroeder, 49, along with his co-defendants, Jill Martin Alvarado, 60, of Irving; Rigo Alvarado, 57, of Barstow; Ryan Martinez, 58, of San Antonio; and Phyllis Joe Martinez, 80, of San Antonio, conspired to defraud various financial institutions of money by factoring false and fraudulent invoices. Factoring is when a company sells specific accounts receivable to a third party at a discounted price to accelerate its cash flow.
Schroeder used fraud and deceit to factor false invoices for companies owned by his co-defendants. Schroeder would factor these false invoices with Southwest Bank and Bank of San Antonio (BOSA). Schroeder and other co-conspirators would then use that money for their own personal enrichment or to pay off old invoices owed to the financial institutions much like a Ponzi scheme where money from new investors is used to pay old investors.
Three companies involved in the scheme included: Nerd Factory, which was owned by Ryan Martinez and later, Phyllis Martinez; Alvy’s Logistics, which is owned by Jill and Rigo Alvarado; and, Republic Logistics, a fake company created and used by Schroeder to steal money for himself. According to the court records, false and fraudulent invoices from Nerd Factory were factored by Southwest Bank and then Bank of San Antonio. That money would then be used by the owners of Nerd Factory, Ryan Martinez and later, Phyllis Martinez, for legal fees in a pending criminal federal case or as unearned profit. Alvy’s Logistics and Nerd Factory also sent back some of the money obtained to Schroeder.
In addition to using false and fraudulent invoices for actual companies, Schroeder submitted the fake invoices from Republic Logistics to BOSA for payment. Schroeder then used this money to purchase expensive items, such as cars, RVs, an airplane, boat, and a beach house as well as $50,000 in landscaping and the installation of a $100,000 pool. In its forfeiture proceedings, the United States seized and forfeited several items, including a Shelby Mustang and proceeds for the sale of a Port Aransas property, and sold Schroeder’s interest in a Columbia single engine aircraft.
On December 9, 2021, Schroeder pleaded guilty to one count of conspiracy to commit bank fraud.
“Today’s sentencing demonstrates that our office has and will continue to aggressively pursue and prosecute fraud against financial institutions,” said Executive Assistant U.S. Attorney Kristy Callahan. “This type of fraud damages the economy and eventually the consumer. Along with our partners in law enforcement, this office will hold accountable those who commit fraud, divest them of criminal proceeds, and use federal remedies to recover victim losses.”
Schroeder’s co-defendants all pleaded guilty to one count of conspiracy to commit bank fraud. Phyllis Martinez was sentenced to time served and ordered to pay restitution of $289,984; Jill Alvarado was sentenced to time served and ordered to pay restitution of $3,904,924.92; Rigo Alvarado was sentenced to 48 days imprisonment and ordered to pay restitution of $3,904,924.92; and Ryan Martinez is still pending sentencing.
The FBI investigated the case. The U.S. Marshal Service assisted with the recovery of property derived from criminal proceeds.
Assistant U.S. Attorneys Joseph E. Blackwell prosecuted the case. Assistant U.S. Attorney Fidel Esparza III handled the asset forfeiture proceedings.
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Drug Trafficker Who Operated from Fayetteville Daycare Sentenced to 40 Years in Federal Prison for Drug and Firearms OffensesRead the Press Release
RALEIGH, N.C. – Reshod Jamar Everett, 36, of Cumberland County, was sentenced to 40 years in federal prison for leading a drug trafficking operation out of an in-home daycare and other locations in Fayetteville. A jury returned a verdict on May 10, 2022 finding Everett guilty of six felony drug trafficking and firearms related charges.
“Despite Everett’s best efforts to undermine the public trust in our local law enforcement partners, investigators were able to build a comprehensive case demonstrating that he was responsible for distributing vast quantities of illegal drugs in the Fayetteville area,” said Michael Easley, U.S. Attorney for the Eastern District of North Carolina. “The fact that he stored drugs, cash, and loaded, high-powered AR rifles at an in-home daycare further underscores the danger that Everett presented to the community at large.”
"For years, Reshod Everett used the compassion of our community to deflect from his criminal activity in order to garner mistrust of the police department,” said Fayetteville Police Chief Gina Hawkins. “We are pleased with our continued federal partnership and another drug peddler is out of our community."
“The threat this individual posed to the community cannot be overstated,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “Large quantities of drugs and multiple firearms – many of which were loaded and ready to fire – were recovered within a business that served parents and children. This was a tragedy waiting to happen, and because of the work from the Fayetteville Police Department, ATF, and the U.S. Attorney’s office, we’ve prevented that tragedy and ended this individual’s criminal career.”
In 2018, investigators with the Fayetteville Police Department determined that Everett was distributing large amounts of controlled substances, including from an apartment in Fayetteville. On July 16, 2018, agents conducted a traffic stop of a Cadillac driven by co-defendant Alvin Milton Davis as it left the apartment complex. In the vehicle, agents found marijuana, cocaine, and a loaded handgun with an extended magazine.
The same day, agents obtained a search warrant for the apartment and seized more than 36 pounds of marijuana, more than 300 grams of cocaine, and a loaded CZ Scorpion firearm. The apartment was leased by Reshod Everett, with Alvin Davis listed as an authorized occupant.
Investigators then determined that Everett’s primary residence was on Ronald Reagan Drive in Fayetteville, and that he and his wife operated an in-home daycare in the residence. On July 17, 2018, agents obtained a search warrant for the house and seized more than $65,000, eight firearms, ammunition, and THC edibles. In a detached shed, agents seized THC wax, tramadol, and drug packaging materials.
Several of the firearms found inside the residence were loaded, high-powered rifles. One loaded rifle had the selector switch set to “fire,” and, as such, only a small amount of pressure on the trigger would have caused gun to fire.
Investigators then identified a storage unit used by Everett. A search warrant was issued for the storage unit, and on July 18, 2018, it was found to contain more than 65 pounds of marijuana.
Witness testimony established that Everett was responsible for more than five kilograms of cocaine and more than 1,700 kilograms of marijuana.
Evidence introduced at trial also showed that Everett attempted to engage in a variety of tactics to obstruct prosecutors and investigators. These tactics included giving false testimony under oath, attempting to bribe or threaten others to give false testimony, utilizing gang members to intimidate witnesses, and engaging in an extensive social media campaign to falsely accuse the Fayetteville Police Department and Cumberland County District Attorney’s Office of wrongdoing.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation Cali Verde. OCDETF investigations identify, disrupt, and dismantle the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Court Judge James C. Dever III. The Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case, and the Internal Revenue Service assisted at trial. Assistant U.S. Attorneys Scott Lemmon and Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 5:20-CR-00333-D-1.
Downey Man Arrested on Federal Charges Alleging He Sold Fake Prescription Pills that Caused Fatal Fentanyl OverdoseRead the Press Release
LOS ANGELES – A Downey man is in federal custody today after being arrested on federal charges of selling counterfeit prescription pills containing fentanyl to a 17-year-old Downey female who suffered a fatal overdose from the synthetic opioid.
Jonathan Limas-Reyes, 26, was taken into custody Tuesday afternoon by special agents with the Drug Enforcement Administration. Limas-Reyes was ordered detained pending trial during an arraignment Wednesday afternoon in United States District Court.
A federal grand jury on August 19 charged Limas-Reyes in a two-count indictment that accuses him of distributing fentanyl resulting in death and distributing fentanyl with to a person under 21. Limas-Reyes pleaded not guilty to the charges in the indictment and an October 18 trial date was scheduled.
The indictment alleges that, on or about October 29, 2021, Limas-Reyes sold the victim the fentanyl-laced pills, “the use of which resulted in the death and serious bodily injury of victim A.K.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charge of distribution of fentanyl resulting in death and serious bodily injury carries a mandatory minimum sentence of 20 years in federal prison and a maximum statutory penalty of life. The charge of distribution of fentanyl to a person under age 21 carries a mandatory minimum sentence of one year and a maximum statutory penalty of life.
The DEA’s Los Angeles Field Division is investigating this matter. The Downey Police Department provided substantial assistance.
Assistant United States Attorneys Lyndsi Allsop and David Williams of the General Crimes Section are prosecuting this case.
This case is the result of an investigation by the Drug Enforcement Administration’s Overdose Justice Task Force, which was created to address opioid-related deaths in the greater Los Angeles area, most of which are caused by the synthetic opioid fentanyl. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents collaborate with local law enforcement to analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution, and, if so, proactively target the drug trafficker.
District of Columbia Auditor Faces Money Laundering Charges Related to an International Romance ScamRead the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed charging Charles K. Egunjobi, age 48, of Waldorf, Maryland, with operating an unlicensed money service business relating to numerous online romance scams. Egunjobi had his initial appearance today in U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms. He was released under the supervision of the United States pre-trial services.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Andrew Hartwell of the U.S. Department of Justice, Office of the Inspector General Fraud Detection Office (DOJ-OIG); and Acting Postal Inspector in Charge Tira Hayward of the U.S. Postal Inspection Service - Washington Division (USPIS).
According to the affidavit filed in support of the criminal complaint, Egunjobi is a financial auditor for the District of Columbia Government where he supports criminal investigations.
As alleged in the affidavit filed in support of the criminal complaint, between September 2019 and April 2020, Egunjobi facilitated the money laundering operations of a romance scheme involving co-defendant Isidore Iwuagwu, age 35, of Upper Marlboro, Maryland.
The alleged romance scam co-conspirators contacted victims on social media platforms and dating sites, engaged in online relationships with the victims, then convinced victims to send large sums of money claiming the funds were needed for purported personal hardships. Many victims reported sending funds at the request of individuals claiming to be deployed members of the United States Armed Forces who asked for money for various personal hardships. The alleged scam involved more than 20 victims, many of whom are senior citizens.
For example, as detailed in the affidavit, one victim reports that she sent thousands of dollars to various individuals in the United States, including to Egunjobi, based on the instructions given to her by an individual she met on a dating website, who claimed to be a U.S. soldier deployed in Iraq.
As stated in the criminal complaint, law enforcement executed a search warrant at Egunjobi’s residence on August 10, 2022. As a result of the executed search warrant, law enforcement found what appeared to be a ledger, listing Egunjobi’s name, bank account information, dates of transactions, and notations. Some of the transaction dates recorded in the ledger matched the victim’s money order transfers.
The affidavit further alleges that law enforcement discovered messages on Egunjobi’s phone from individuals asking Egunjobi to transfer money or vehicles from the United States to Nigeria. Messages between Egunjobi and Iwuagwu allegedly indicate that Egunjobi assisted Iwuagwu to obtain Nigerian currency in exchange for Egunjobi receiving U.S. currency.
If convicted, Egunjobi faces a maximum sentence of five years in federal prison for operating an unlicensed money service business. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
United States Attorney Erek L. Barron commended the DOJ-OIG and USPIS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Rajeev R. Raghavan and Jennifer L. Wine, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Defendant Admits to 2014 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DONOVAN GRANT pled guilty today in Manhattan federal court to participating in the armed robbery of Jercar Brooks in the Bronx on January 23, 2014. As part of his guilty plea, GRANT admitted that during the robbery, he shot and killed Brooks. GRANT is scheduled to be sentenced before the Honorable Alvin K. Hellerstein on November 28, 2022.
U.S. Attorney Damian Williams said: “Eight years ago, Jercar Brooks was murdered inside his apartment in the Bronx. Thanks to the tireless efforts of the New York City Police Department and the Federal Bureau of Investigation, Donovan Grant has now been held accountable for this senseless crime. Together with our law enforcement partners, this Office will continue to bring justice to the victims of violent crime.”
According to the allegations in the Superseding Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
On January 23, 2014, GRANT planned to rob Brooks at gunpoint during a supposed marijuana deal. GRANT brought a gun and bag of pretend money to Brooks’ apartment located at 634 East 233rd Street in the Bronx, intending to take the marijuana by force if the plan to deceive Brooks was unsuccessful. During the course of the armed robbery, GRANT shot Brooks two times and killed him. GRANT fled the building, taking with him the box of marijuana that he had planned to steal.
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GRANT, 60, of Brooklyn, New York, pled guilty to one count of Hobbs Act robbery, in violation of Title 18, United States Code, Section 1951, which carries a maximum term of twenty years in prison.
The maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigating work of the FBI and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Jason Swergold and Mollie Bracewell are in charge of the prosecution.
Columbus man sentenced to 10 years in prison for distributing and possessing bulk amount of methRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 121 months in prison for distributing and possessing with intent to distribute more than 750 grams of methamphetamine.
According to court documents, in May and July 2021, Levi Phillips, 25, sold methamphetamine to undercover DEA agents on at least two occasions.
While executing a search warrant in August 2021, law enforcement agents discovered more than 500 grams of methamphetamine and approximately 112 grams of fentanyl in Phillips’s bathroom packaged for distribution.
Agents also discovered a semi-automatic pistol and a magazine loaded with seven rounds of ammunition on a dresser; an AM-15 rifle, loaded with 223 rounds of ammunition under the bed; additional magazines and ammunition in a safe; and a semi-automatic pistol with a magazine and 14 rounds of ammunition in a backpack.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA) announced the sentence imposed by Senior U.S. District Court Judge James L. Graham. Assistant United States Attorney Nicole Pakiz is representing the United States in this case.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) initiative. OCDETF identifies, disrupts and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about OCDETF can be found at https://www.justice.gov/OCDETF.
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Cherry Creek Man Sentenced for BurglaryRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Cherry Creek, South Dakota, man convicted of First Degree Burglary was sentenced on August 22, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Timothy Red Elk, age 42, was sentenced to 33 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Elk was indicted by a federal grand jury in February of 2022. He pled guilty on May 19, 2022.
Shortly before 3:00 a.m. on September 11, 2021, Timothy Red Elk went to the home of the victim in Cherry Creek and knocked on her door. When the victim opened the door, Red Elk asked for her son. The victim explained that her son was sleeping and began to close the door. Red Elk started punching the victim in the face inside the home with a closed fist. Red Elk stopped only when the victim’s daughter pushed him out the door and his sister pulled Red Elk away. The assault was unprovoked. The victim sustained several fractures to her facial bones from the assault.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Red Elk was immediately remanded to the custody of the U.S. Marshals Service.
Carlsbad Man Convicted of Multiple Armed RobberiesRead the Press Release
SAN DIEGO – Benjamin Robert Laubbacher of Carlsbad pleaded guilty in federal court today, admitting that he committed six robberies of grocery stores and other businesses during a 15-day period in 2021, including several heists where he displayed a handgun.
In his plea agreement, Laubbacher admitted to robbing a CVS pharmacy, a Bath & Body Works and numerous grocery stores between January 22, 2021, and February 5, 2021. All the robberies were committed in a similar manner: He entered the store, selected items for purchase, approached the register and demanded money from the cashier. In certain robberies, Laubbacher displayed a black handgun in his waistband. Over the course of his six successful and one attempted robberies, Laubbacher obtained approximately $2,327.32.
“This defendant inflicted maximum terror on cashiers, who will suffer a lifetime of anguish over the memory of this experience,” said U.S. Attorney Randy Grossman. “Now he will be held accountable.” Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.
“This defendant had little qualms of brandishing a gun to intimidate and cause fear in his victims during six different robberies to get what he wanted,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “With today’s guilty plea, Laubbacher will no longer be a threat to anyone else in our community. The FBI is proud to have coordinated this investigation with our law enforcement partners, including the San Diego, Carlsbad and Irvine Police Departments and the San Diego Sheriff's Department, as well as FBI Los Angeles Orange County Resident Agency, to stop this defendant from committing any more violent crimes and hold him accountable for his actions.”
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Laubbacher is scheduled to be sentenced on November 14, 2022 at 9:00 a.m. before U.S. District Judge Cynthia Bashant.
DEFENDANT Case Number 21-cr-2010-BAS
Benjamin Robert Laubbacher Age: 50
SUMMARY OF CHARGES
Hobbs Act Robbery and Attempted Hobbs Act Robbery – Title 18, U.S.C., Section 1951
Maximum penalty: Twenty years in prison and $250,000 fine
Possession of a Firearm in Furtherance of a Crime of Violence (2 counts) – Title 18, U.S.C., Section 924(c)
Maximum Penalty: Life in prison and $250,000 fine
Minimum Penalty: Five years in prison per count, consecutive to all other sentences
AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego Sheriff’s Department
Carlsbad Police Department
Irvine Police Department
Caretaker of Senior Couple Sentenced for Stealing Hundreds of Thousands from Elderly Couple’s Bank AccountsRead the Press Release
Miami, Florida – A U.S. federal district judge sentenced 52-year-old Sherri Lynn Smith to 51 months in prison, followed by four years of supervised release for stealing nearly $300,000 from two seniors by accessing their bank accounts while employed as their caretaker.
From 2016 to 2019, Smith worked as a caretaker for an elderly couple in Broward County. As part of her duties, Smith had access to the victims’ bank accounts to assist them with paying their monthly bills. Smith used her access to the victims’ finances to embezzle approximately $300,000 out of the victims’ accounts without their knowledge or consent. She accomplished this by writing and forging the victim’s signature on checks made payable to herself, her family members, and her creditors; initiating Zelle electronic money transfers from the victims’ accounts to her own bank account; and making electronic payments from the victims’ accounts to her and her husband’s numerous credit card accounts.
In addition to sentencing Smith to prison and supervised release terms, the judge entered a forfeiture money judgment in the amount of $288,865.92 and ordered Smith to pay $168,895.92 in restitution. United District Judge Thomas P. Barber, of the Middle District of Florida, presided over this Southern District of Florida case.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorney Diana M. Acosta prosecuted it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14023.
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Colorado Man Pleads Guilty to Cocaine PossessionRead the Press Release
ST. CROIX, VI – United States Attorney Delia L. Smith announced today that Kareme Holst, age 46, of Colorado, pleaded guilty in District Court before Magistrate Judge Emile A. Henderson, III, to Possession with Intent to Distribute Cocaine. Holst’s sentencing hearing in this matter is scheduled for December 12, 2022.
According to court documents, on October 19, 2021, Holst was referred to secondary while attempting to board a flight from St. Croix’s Henry Rohlsen Airport to Miami. While in secondary inspection, Holst’s possessions, including a case of liquor, was x-rayed, and the box appeared to contain six round jars with an unknown substance. Upon further inspection of the box, officers discovered six jars of solid coconut substance, and inside each jar was a plastic bag containing a white powdered substance. A search of Holst’s suitcase also yielded an additional plastic bag containing a white powdered substance that was found in a pocket in a pair of pants. Laboratory analysis later confirmed that the white powdered substance was cocaine weighing approximately 2.7 kilograms.
For his conviction, Holst faces a term of not less than five years and not more than 40 years imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other factors. This case was investigated by the Homeland Security Investigations and Customs and Border Protection and was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Bridgeport Man Pleads Guilty to Defrauding AmazonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that RAJHNI YANKANA, 27, of Bridgeport, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to a charge stemming from his fraud against Amazon.com, Inc. (“Amazon”).
According to court documents and statements made in court, Yankana created multiple vendor accounts with Amazon allowing him to sell merchandise through the website on a third-party basis. He often opened the accounts using false names, email addresses and other identifying information. After setting up the accounts, Yankana represented to Amazon that he was shipping it valuable merchandise to be held for sale by the company. In reality, he would not ship the merchandise, and would later falsely claim that it had been lost, supporting his false claims with fabricated documents. Amazon sent Yankana a series of refunds for the purportedly lost merchandise.
The government contends that Amazon lost approximately $210,000 as a result of Yankana’s criminal conduct.
Yankana pleaded guilty to one count of wire fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Thompson scheduled sentencing for January 6, 2023.
Yankana is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Conor M. Reardon and Christopher W. Schmeisser.
Baton Rouge Man Indicted in Federal Court for Kidnapping, Carjacking, Using and Carrying a Firearm During and in Relation to a Crime of Violence, and Possession of a Firearm by a Convicted FelonRead the Press Release
A federal grand jury recently returned a four-count indictment charging Treston Isiah Bickham, age 30, of Fluker, Louisiana, with kidnapping, carjacking, using and carrying a firearm during and in relation to a crime of violence, and possession of a firearm by a convicted felon.
According to the indictment, on June 24, 2022, Bickham carjacked and kidnapped the victim. During the commission of these crimes, Bickham used a firearm which he was prohibited from possessing as he was previously convicted of a felony.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Baton Rouge Police Department and is being prosecuted by Assistant United States Attorney Kristen L. Craig.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Bank Robber Dubbed “Chameleon Beard Bandit” SentencedRead the Press Release
GREENSBORO – Ronnie Hiram Wessinger, Jr., age 49, of Gaffney, South Carolina, was sentenced today by United States District Judge William L. Osteen, Jr., to 180 months in prison followed by a three-year term of supervised release for two counts of bank robbery.
According to court records, on September 29, 2017, Wessinger walked into a Bank of America branch located at 2 Park Drive in Durham. Wessinger, dressed in a gray long-sleeved shirt, blue jeans, a safari hat with a palm tree logo, and black gloves, was carrying a motorcycle-style helmet. He also appeared to have a beard. He handed a note to a teller. The note said “This is a robbery. All money in bag. No dye packs. I have a gun. Don’t be stupid.” When the teller tried to show her manager the note, Wessinger told her to “hurry up” while placing his hand on his front pants pocket, indicating he possessed a firearm. He then told her to “Give me the note back! I want all of it!” She described him as seeming agitated as she handed him mostly small denominations. He then demanded larger denominations, asking, “Where are the hundreds?” She explained that she was giving him everything available to her. When he looked away from her, she was able to quietly tell another employee to call 911 because she was being robbed. After taking the money, Wessinger began to leave the bank, saying “Don’t follow me or send anyone after me or I will shoot.” He then ran away from the bank. Employees locked the main entrance and waited for law enforcement. An audit revealed that Wessinger robbed the bank of $10,747.74.
Court records also reflect that on November 17, 2017, Wessinger, who appeared to have a dark beard, entered the Bank of America branch located at 107 Muirs Chapel Road in Greensboro while wearing a purple buttondown shirt and black hat, and carrying a motorcycle helmet. He approached the first teller window and handed a note to the victim teller. He then lifted his shirt and showed her a gun that was tucked in his waistband and demanded money. She told him that because it was the end of the day, she did not have any money. Wessinger then raised his voice and told her to “Give me some large bills.” She then showed him her empty register, to which he responded, “I’ll kill yo ass.” Another teller who was worried for the victim-teller’s safety gave Wessinger $2,500 from her register. Wessinger told them it was not enough, so another teller gave the initial victim-teller $2,244, which she then gave to Wessinger. He put the cash into a backpack he was carrying, asked for his note back, and left the bank.
Wessinger pled guilty to both robberies on April 7, 2022. According to some news reports, he was nicknamed the “Chameleon Beard Bandit” because he often changed the color of his beard.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. The case was investigated by the Federal Bureau of Investigation, Greensboro Police Department, and Durham County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Veronica L. Edmisten.
$1.2 Million to Be Returned to Romanian Government, the Victim of an International Tax Fraud and Money Laundering SchemeRead the Press Release
The Department of Justice announced today that more than $1.2 million in forfeited funds from an international tax fraud and money laundering case will be returned to the government of Romania. The funds are the proceeds of the sale of property located in the State of Washington that were owned by a Romanian couple who were extradited back to Romania at the request of the Romanian government.
According to records filed in the U.S. District Court for the Western District of Washington, in 2012, Romanian authorities asked the United States to extradite Radu and Diana Nemes to Romania to face charges of tax evasion and participating in an organized criminal group. The charges alleged that the Nemeses executed a scheme to avoid Romanian taxes on imported diesel fuel by claiming the fuel was a lower grade of industrial and maritime fuel. The untaxed income from the sale of the higher value diesel was laundered through a number of bank accounts and shell companies controlled by the Nemeses.
Arrest warrants for the couple were issued in Romania in July 2012. Sometime before those warrants, the Nemeses had left Romania and resided near Yelm, Washington, on a large piece of property with an elaborate bunker system. Following their arrest in the United States, the couple waived extradition and agreed to be returned to Romania in early 2014.
The couple’s assets in the United States were forfeited, including Yelm properties which were sold as part of the forfeiture process. The proceeds of that sale, $1,225,465, are being returned through a petition for remission to the government of Romania as a recovery on the tax fraud. The overall tax fraud scheme resulted in a $58.677 million loss to the Romanian government.
The case is being handled by Assistant U.S. Attorney Jehiel Baer of the Western District of Washington, in cooperation with the Criminal Division’s Office of International Affairs (OIA) and the Money Laundering and Asset Recovery Section (MLARS).
25 August 2022
Woodstock Dentist Sentenced to Probation and Pays $100,000 Civil Penalty for Fraudulently Acquiring OxycodoneRead the Press Release
ALBANY, NEW YORK – Vivian Letizia, age 64, of Stone Ridge, New York, was sentenced today to one year of probation for acquiring and obtaining a controlled substance by misrepresentation, fraud, deception or subterfuge. Letizia was also ordered to undergo drug treatment and pay a $5,000 fine.
Letizia has also paid the United States $100,000 to resolve her civil liability for the same conduct.
The announcement was made by United States Attorney Carla B. Freedman and Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division.
Letizia was a dentist in Woodstock and authorized to prescribe controlled substances. Letizia admitted that on several occasions in 2019 and 2020, she sent electronic prescriptions for oxycodone to various pharmacies in her patients’ names. But these oxycodone prescriptions were not intended for the patients, as Letizia picked up the oxycodone and consumed it herself. Letizia also ordered oxycodone to her dental practice for her own consumption. As part of resolving this case, Letizia surrendered her DEA registration and is prohibited from re-applying for a new one. She also agreed to surrender her New York State medical license.
This case was investigated by the New York State Department of Health, Bureau of Narcotic Enforcement, and DEA Albany District Office’s Diversion Group and Tactical Diversion Squad.
The criminal case was prosecuted by Assistant U.S. Attorney Ashlyn Miranda. The civil case was handled by Assistant U.S. Attorney Christopher R. Moran.