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15 August 2022
California Firm and Owner Sentenced for COVID-19 Fraud SchemeRead the Press Release
A California man was sentenced Friday to eight months in custody for the importation, shipping and sale of illegally imported pesticides that were falsely advertised as products that could protect the user “from airborne infectious diseases.”
Samir Haj, 47, of San Diego, pleaded guilty in the Southern District of California on May 25, 2021, to charges relating to the unlawful importation, sale and mailing of an unregistered pesticide product from Japan marketed as a killer of airborne viruses such as COVID-19. Both he and his firm, Eco Shield LLC, were ordered to forfeit $427,689 in proceeds and pay restitution of $86,754. Eco Shield was ordered to pay an additional fine of $42,000.
According to court documents, the defendants sold the product EcoAirDoctor, a small gas-emitting badge that defendants claimed would kill viruses within a certain distance. Products making these types of public health claims are regulated by the U.S. Environmental Protection Agency (EPA), which requires extensive testing to substantiate the claims of efficacy and safety prior to approving them for registration and sale in the United States. EcoAirDoctor was not registered with the EPA, and testing performed on behalf of the defendants revealed that the badge was not measurably effective “at killing off a useful number of microbes within the air.”
“This prosecution sends a strong message that circumventing federal environmental and public safety laws in order to profit from the public’s fears during a pandemic will not be tolerated,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “I thank our partners at the Environmental Protection Agency, Homeland Security Investigations, and the Postal Service for the investigation that led to the convictions and sentencings in this case.”
“This product not only didn’t work, but it was even potentially harmful,” said U.S. Attorney Randy Grossman for the Southern District of California. “The defendant and his company will be held to account for cashing in on Covid-19 fears during a global pandemic.”
“The defendants knowingly persisted in their false assertions that their product provided protection against COVID-19,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation Program in California. “EPA and its law enforcement partners are committed to holding responsible parties accountable for putting people’s health at risk.”
“Homeland Security Investigations (HSI), along with our government partners, are committed to protecting the American public against criminal networks attempting to illegally import and sell products that could endanger lives of U.S. consumers for financial gain,” said Special Agent in Charge Chad Plantz of HSI San Diego. “We remain vigilant and will use our broad legal authorities to disrupt and dismantle criminal networks seeking to exploit and benefit from the COVID-19 pandemic.”
“Postal Inspectors remain vigilant in protecting the U.S. Postal Service (USPS) and the communities we serve," said Inspector in Charge Carroll N. Harris of the U.S. Postal Inspection Service (USPIS). "Preventing the dangerous misuse of the nation’s mail system remains one of our top priorities.”
The EcoAirDoctor badge consisted of sodium chlorite and natural zeolite. When the product is opened, the zeolite contacts the sodium chlorite, releasing chlorine dioxide gas. The EPA has established a reference concentration for long-term continuous exposure to chlorine dioxide of 0.00007 parts per million (ppm). Risks from the inhalation of chlorine dioxide are a concern if the air concentrations exceed the reference concentration. The documentation provided by Eco Shield LLC states that chlorine dioxide levels below 0.0001 do not kill viruses and claims that the concentration for viral inactivation should be between 0.0001 and 0.1 ppm, in excess of the levels deemed safe by the EPA.
Moreover, both sodium chlorite and chlorine dioxide (nonhydrate) fall into Hazard Class 5.1 under the USPS rules and regulations, for which mailing is prohibited. Transportation of these materials via USPS is strictly prohibited, due to the danger of fire and explosion. Chlorine dioxide does not require air to combust and can cause coughing, wheezing, and respiratory distress. At very high exposure levels, it can be fatal. Records from Eco Shield LLC indicate that 1,744 Air Doctor Portables were shipped via the USPS to purchasers across the United States between March 1, 2020 and April 18, 2020. At least 300 of those shipments occurred after the defendants received notice that shipping by mail was unlawful.
The defendants imported the EcoAirDoctor badge from Japan, falsely describing it as air purifiers rather than pesticides, which would have subjected the entry to inspection by the EPA. In addition to falsely describing the nature of the goods, the entry documents undervalued the shipment by over $500,000, allowing the defendants to evade $33,919 in Customs duties. The sentence imposed required the defendants to pay restitution of $86,754 to U.S. Customs to cover the loss of duty and the cost of disposing of seized EcoAirDoctor badges.
The defendants profited handsomely from the sale of the illegally-imported pesticides. At the outset of the pandemic, the badges, purchased for $6.25 each, were then sold to the public in the United States for $20.95 each, plus shipping. During the first six months of 2020, the defendants pocketed $1,132,950 from the sale of the badges, including sales occurring outside the United States. The Federal Trade Commission issued a warning letter on April 27, 2020, advising the company not to make unsubstantiated claims for Coronavirus protection, and on July 24, 2020, the EPA issued a Stop, Sale, Use or Removal Order. The sentence requires the defendants to forfeit $427,689 in proceeds from the sale of the badges within the United States.
The EPA’s Criminal Investigation Division, HSI, and the USPS investigated the case.
Senior Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division's Environmental Crimes Section and Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California prosecuted the case.
Billings woman admits trafficking fentanyl on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Billings woman suspected of trafficking methamphetamine and fentanyl on the Rocky Boy’s Indian Reservation admitted to charges today, U.S. Attorney Jesse Laslovich said.
Chantel Marie Azure, 33, pleaded guilty to conspiracy to distribute and to possess with intent to distribute controlled substances. Azure faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Dec. 1. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Azure was detained pending further proceedings.
In court documents, the government alleged that from about December 2020 through January 2021, at Havre and on the Rocky Boy’s Indian Reservation, Azure conspired with others to distribute meth and fentanyl. In January 2021, an informant working with law enforcement made a controlled purchase of 10 suspected fentanyl pills for $800 from Azure. The transaction involved Azure driving, with two male passengers, to a location and doing the drug deal in the informant’s car. Law enforcement continued surveillance of Azure and watched her engage in what appeared to be another transaction with a known local drug user. Law enforcement then stopped Azure’s vehicle, and identified the two other passengers, who ultimately were arrested. Cash from the controlled buy was found on the passengers. One of the passengers had meth and fentanyl pills the other passenger had a smaller bag of meth. A search warrant for Azure’s Facebook accounts recovered evidence of Azure trafficking both meth and pills.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the Tri Agency Task Force, Drug Enforcement Administration and Havre Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Alien Smuggling Coordinator Pleads Guilty to Bribing Former Border Patrol AgentRead the Press Release
TUCSON, Ariz. – Luis Alfredo Quintero-Gonzalez, 36, of Mexico, pleaded guilty on August 11, 2022, for Conspiracy to Commit Bribery and Alien Smuggling. Sentencing is scheduled for October 25, 2022, before United States District Judge Jennifer G. Zipps.
Evidence gathered during the investigation established that Quintero-Gonzalez paid former United States Border Patrol (USBP) agent Carlos Passapera thousands of dollars in cash bribes for smuggling undocumented noncitizens into the United States between August and December 2019.
Quintero-Gonzalez admitted that he conspired to coordinate and coordinated the illegal entry of undocumented noncitizens by acting as the middleman between Passapera and the individuals seeking illegal passage into the United States. While working as a USBP agent, Passapera would receive communication from Quintero-Gonzalez and then pick up the undocumented noncitizens along the U.S.-Mexico border near Lukeville, Arizona. Passapera would then smuggle the individuals through Border Patrol checkpoints and deliver them to locations within the Phoenix area. Throughout the conspiracy, Quintero-Gonzalez and Passapera smuggled at least eight undocumented noncitizens into the United States. In exchange for his role in the conspiracy, Passapera received approximately $64,000 in bribery payments from Quintero-Gonzalez.
A conviction for Conspiracy to Commit Bribery and Alien Smuggling carries a maximum penalty of five years of imprisonment and a $250,000 fine.
Passapera was charged separately for his involvement in the conspiracy in case CR-20-01706-TUC-JGZ-MSA and has pleaded not guilty. His jury trial is scheduled to begin on April 3, 2023, before United States District Judge Jennifer G. Zipps.
The case was investigated by the Federal Bureau of Investigation’s Southern Arizona Corruption Task Force, and the Department of Homeland Security Office of the Inspector General. The Financial Crimes and Public Corruption Section of the United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-01529-TUC-JGZ-MSA
RELEASE NUMBER: 2022-135_QUINTERO-GONZALEZ# # #
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.
Alabama Company Charged in Worker Death CaseRead the Press Release
The Justice Department and the U.S. Attorney’s Office for the Northern District of Alabama announced criminal charges today in a case involving willful violations of Occupational Safety and Health Administration (OSHA) standards that led to a worker’s death. The charges involve an Aug. 16, 2017, incident at the Helena, Alabama, plant owned by ABC Polymer Industries LLC, in which a worker was pulled into a cluster of unguarded moving rollers and killed.
ABC Polymer manufactures flat plastic sheets using plastic extrusion assembly lines that pull the plastic sheeting through multiple clusters of large spinning rollers. As alleged in the charging document, the machine at issue was manufactured with a metal barrier that would protect the operator from the pinch points of the moving rollers, as well as an “interlock” mechanism that would stop the rollers’ spinning if the guard were lifted out of the way. OSHA standards require moving machinery, such as the one at issue here, to be guarded while the machine is energized.
However, ABC Polymer had a standard practice of operating that machine with the guard in the “up” or unprotected position when the rollers were moving. The automatic mechanism that would have stopped the line and rollers’ spinning when the guard was in the up position was not used, allowing operators to reach between or near the roller drums to cut tangles in the plastic sheet without stopping the line.
Despite knowing of numerous prior worker injuries from using that machine without the safety guard engaged, ABC Polymer assigned the victim to cut tangles out of plastic sheeting from among the machine’s unguarded spinning rollers with a hand tool. The worker became entangled in the spinning rollers and was killed.
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations.
The Occupational Safety and Health Administration of the U.S. Department of Labor investigated this case. Trial Attorneys William Shapiro and Ethan Eddy of Justice Department's Environment and Natural Resources Division, Environmental Crimes Section, and Assistant U.S. Attorneys Robert Posey and Ryan Rummage are prosecuting the case.
The defendant is presumed innocent until convicted. If convicted, the defendant faces a fine of up to $500,000, or twice the financial gain to the defendant or twice the financial loss to another, whichever is greater, and is also liable for restitution to the victim. A federal district court judge will determine any sentence after considering the relevant statutory factors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
13 August 2022
Federal Jury Finds Man Guilty in Fraud and Money Laundering SchemeRead the Press Release
HUNTINGTON, W.Va. – After three days of trial, a federal jury convicted Abdul Inusah, 31, of Ghana, for his role in a Huntington-based scheme that defrauded individuals in multiple states through the use of false online personas.
Evidence at trial revealed that Inusah was part of a conspiracy that targeted victims using false personas via email, text messaging, and online dating and social media websites. From at least January 2018 through at least December 2019, the scheme sought to induce victims into believing they were in a romantic relationship, friendship, or business relationship with the various false personas. The victims were persuaded to send money for a variety of false and fraudulent reasons for the benefit of the false personas.
One false persona, “Miarama,” was used to induce an Alabama resident into providing $106,000 via wire transfers and cashier’s checks. The amount included $48,000 to pay overdue taxes on a nonexistent gold inheritance in Ghana and $21,000 wired to Bitsav Supply LLC, a shell company set up by Inusah. Another false persona, “Grace,” persuaded a Washington resident to wire funds so “Grace” could maintain her South African cocoa plantation and move to the United States to marry the victim. Other victims of the false personas included residents of Ohio and Florida.
The jury found Inusah guilty of receipt of stolen money, conspiracy to commit money laundering, and two counts of wire fraud. The wire fraud counts involve a pair of $2,000 Zelle wire transfers to Inusah from the money obtained using the “Miarama” false persona in January 2019.
“It is truly heartbreaking how this conspiracy exploited individuals who were particularly vulnerable, such as following the death of a longtime spouse,” said United States Attorney Will Thompson. “Some of the victims did not recognize themselves as victims, and continued to believe these false personas were real and that they were in actual relationships. I commend the investigative work of the United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police and the South Charleston Police Department. I also commend Assistant United States Attorneys Kathleen Robeson and R. Gregory McVey and our trial team for trying this complex fraud case before the jury.”
United States District Judge Robert C. Chambers presided over the jury trial. Inusah is scheduled to be sentenced on November 21, 2022, and faces a maximum penalty of 50 years in prison.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov/.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-70.
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12 August 2022
West Chester Man Indicted for Fraud and Tax EvasionRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware announced today that Robert L. Higgins, age 67, of West Chester, PA, was indicted in a Second Superseding Indictment on eight counts of fraud and five counts of tax evasion.
The Indictment charges that Higgins owned and operated businesses in Wilmington, including First State Depository Company, Certified Assets Management, Inc., and Argent Asset Group, LLC, which were involved in the purchase, storage, and sale of precious metals.
More specifically, the Indictment charges that:
- In 2012, Higgins accepted money from an investor for the purchase of silver but had no intent to deliver on that promise and instead fraudulently used the money to operate his businesses, which were on the verge of financial collapse, and which did collapse by approximately the end of 2012;
- Higgins refused the investor’s repeated demands for the full return of his approximately $828,000 investment and;
- Higgins ultimately met with the victim investor and lied to him about the true history of his investment;
- Higgins evaded personal income taxes for the years 2015 through 2019 by diverting Argent Asset Group business funds to pay personal expenses, and by filing false returns with the IRS.
U.S. Attorney Weiss stated, “Financial challenges do not excuse obligations to file and properly report to the IRS. Nor can financial difficulties ever justify fraud. Financial transactions demand accurate disclosures to investors and regulators, and no one can simply ignore the requirements of law.”
An Indictment is merely an accusation. A person is presumed innocent until proven guilty.
The case is being investigated by the FBI and IRS-Criminal Investigation. Assistant U.S. Attorney Edmund Falgowski is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-44 MN.
Waterbury Resident Pleads Guilty to False Statement Charge Involving COVID-19 Vaccine RecordsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, announced that ZAYA POWELL, 25, of Waterbury, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a false statement offense stemming from her creation of false COVID-19 vaccine records for several individuals.
According to court documents and statements made in court, Powell worked as a Data Entry Specialist for Griffin Health Services Corporation (“Griffin Health”) and, in that role, she traveled to various COVID-19 vaccination sites in Connecticut operated by Griffin Health. Although Powell did not administer the vaccines, she had access to the Griffin Health electronic health record system and to stacks of blank COVID-19 vaccination cards. She also had access to the Vaccine Administration Management System (VAMS), a database developed by the Centers for Disease Control (CDC) that tracked COVID-19 vaccine administration.
Between August and October 2021, Powell created fraudulent vaccination records in VAMS for 14 different individuals. The records indicated that each of the 14 individuals had received a single-dose Johnson & Johnson COVID-19 vaccination at a Griffin Health location when, in fact, none had received any COVID-19 vaccination from Griffin Health or any other health care provider. In order to create the fraudulent vaccination record, Powell entered each individual’s name and date of birth into VAMS. She also created fraudulent COVID-19 vaccination cards for each of the 14, and distributed the fraudulent cards to the individuals or to their family members or co-workers. The fraudulent cards included lot numbers of genuine vaccines that were administered to other Griffin Health patients.
The investigation revealed that four of the 14 individuals who received fraudulent COVID-19 vaccination cards created by Powell were state employees who worked at the Southbury Training School, a Connecticut Department of Developmental Services facility located in Southbury. The four Southbury Training School employees were “state employees” or “state hospital employees” within the scope of Executive Order 13G issued by Governor Lamont, and were therefore required to meet the vaccination requirements of the Executive Order by September 27, 2021. The four employees sought and used the fraudulent COVID-19 vaccination cards created by Powell and the false entries in VAMS created by Powell to falsely document that they had received a COVID-19 vaccination.
Powell pleaded guilty to one count of making a false statement relating to a health care matter, an offense that carries a maximum term of imprisonment of five years. Judge Meyer scheduled sentencing for November 4, 2022.
Powell is released on a $25,000 bond pending sentencing.
This investigation is being conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services (HHS-OIG).
U.S. Attorney Avery thanked the Connecticut Department of Public Health, the Connecticut Department of Developmental Services, and Griffin Health for their assistance in the investigation.
This case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
Waterbury Gang Member Sentenced to More Than 5 Years in Federal Prison for Firearm and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RALPH ERNEST, 19, of Waterbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 66 months of imprisonment, followed by three years of supervised release, for drug and firearm offenses.
According to court documents and statements made in court, this matter stems from an ongoing investigation into gangs, drug trafficking and the illegal possession of firearms in Waterbury. On January 18, 2021, Ernest, a member of the Paybacc Crypts gang, stole a car belonging to an off-duty Connecticut State Police trooper. The car contained three shotguns and FBI credentials. Ernest was arrested the next day after officers located him in the stolen car and recovered a 9mm handgun with an extended magazine loaded with 17 rounds of ammunition, as well as quantities of heroin, cocaine and marijuana. Two of the stolen shotguns were recovered soon after Ernest’s arrest from one of his gang associates. The third stolen shotgun and the FBI credentials have not been located.
Ernest has been detained since his arrest on January 19, 2021. On April 7, 2022, he pleaded guilty to one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
This investigation is being conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Connecticut State Police; the Waterbury Police Department; the Wolcott Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and John T. Pierpont, Jr.
U.S. Attorney Avery thanked the State’s Attorney’s Office for the Judicial District of Waterbury for its close cooperation in investigating and prosecuting this matter.
The prosecution 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. In May 2021, the Justice 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.
Washington, D.C. Man Pleads Guilty to Trafficking a 15-Year-Old Homeless Girl for His Prostitution BusinessRead the Press Release
Greenbelt, Maryland – Sirron Little, age 31, of Washington, D.C., pleaded guilty yesterday to sex trafficking of a minor female to engage in commercial sex acts. Little recruited the victim, who was homeless and 15 years old at the time, to work for him as a prostitute.
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 Chief Malik Aziz of the Prince George’s County Police Department.
According to his plea agreement, Little recruited Victim 1 to work for him as a sex worker in April 2018, when she was 15 years old and homeless. Victim 1 worked for Little, engaging in sex acts for money, until December 4, 2018. Little used his cell phone to communicate with Victim 1 regarding the prostitution business, to post scantily clad photos of Victim 1 on online dating services to solicit commercial sex clients and to advertise Victim 1 as a prostitute, and to arrange “dates” with commercial sex clients, in Washington D.C. and in Maryland. Little initially had Victim 1 meet clients for “car dates” or had someone drive Victim 1 to a client’s residence. Eventually, Little moved the sex trafficking operation to motels in Prince George’s County, Maryland. In addition to meeting clients for car dates and at hotels, Little directed Victim 1 to walk along Allentown Road in Maryland and solicit clients directly on the street.
As detailed in the plea agreement, Victim 1 would typically see multiple clients per day, generating as much as $1,500 in a day. Little set the prices for the sex acts, set certain monetary goals for Victim 1, and required Victim 1 to give all the proceeds from the sex trafficking operation to Little. Little threatened to stop providing the victim with food, transportation, and shelter if she did not meet the monetary goals. Little admitted that he physically assaulted Victim 1 on multiple occasions, threatened Victim 1 with a firearm on at least one occasion, and engaged in sex acts with Victim 1.
On December 4, 2018, Victim 1 called emergency services and reported that Little had threatened her with a firearm and had an open warrant. When law enforcement responded to the hotel where Victim 1 and Little were staying, Victim 1 advised that she was having a fight with Little and that he was armed. Little was arrested and a loaded .40-caliber handgun was seized from the room, along with a 20-round box of ammunition and two cellular phones.
As part of his plea agreement, Little must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Little and the government have agreed that, if the Court accepts the plea agreement, Little will be sentenced to 10 years in federal prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for December 6, 2022 at 11:30 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force, created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.mdhumantrafficking.org/.
United States Attorney Erek L. Barron commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Joseph R. Baldwin, who is 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/human-trafficking and https://www.justice.gov/usao-md/community-outreach.
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Virginia Beach Man Sentenced for Possessing a Machine Gun Used in a Norfolk ShootoutRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 7 years in prison for possessing a machine gun used in a shootout in Norfolk.
According to court documents, Shy’Quan Dodson, 25, possessed a machine gun on July 18, 2021. That day, Norfolk police officers were in the vicinity of the 900 block of Tunstall Avenue in Norfolk, where they observed multiple individuals shooting at each other. The individuals fled in three separate vehicles, and during the ensuing pursuit a firearm was tossed from the rear of the vehicle. After a 15-minute pursuit that ended in a crash in Portsmouth, the defendant was detained while attempting to flee on foot from the vehicle. The firearm tossed from the vehicle was a Glock with an attached component that converted the handgun into a fully automatic machine gun.
A search of Dodson’s cell phone showed photos of him holding the weapon, and a primer residue test revealed that Dodson had primer particles on his hands from the discharge of a firearm. Dodson’s phone also contained communications with another individual related to the buying and selling of machine gun conversion kits. According to court filings Dodson is a member of the Norfolk-based Kai Gang, a criminal street gang.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; and Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Assistant U.S. Attorneys William B. Jackson and Joseph DePadilla and Special Assistant U.S. Attorney Graham M. Stolle are prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-1
United States Attorney Kavanaugh Reflects on Five-Year Anniversary of August 12 Terrorist Attack in CharlottesvilleRead the Press Release
Charlottesville, Va. – United States Attorney Christopher R. Kavanaugh released the following statement marking five years since the Unite the Right riots that occurred on August 11-12th, 2017 in Charlottesville, Virginia:
“Five years ago, the city of Charlottesville and the University of Virginia were engulfed by a group of white supremacists and neo-Nazis. Across the nation, people watched in shock as hate-filled violence erupted in the streets of our city. At the end of the day, Heather Heyer, a Charlottesville resident, was killed and at least 30 more peaceful protestors were significantly injured as the result of a senseless mass casualty vehicle attack. Virginia State Police Lieutenant Pilot Jay Cullen and Trooper Pilot Berke M. Bates tragically lost their lives while conducting aerial surveillance that later proved critical in the Justice Department’s investigation. Scores of other individuals were injured, physically and psychologically, and many still feel the effects today.
The United States Department of Justice joins the Charlottesville community in remembering and honoring those who suffered from the events of that weekend. This five-year anniversary serves as a stark reminder that we still have much work to do in the areas of combatting hate crimes and domestic terrorism, both of which remain top priorities of the Justice Department. My Office will continue to hold accountable anyone who engages in violence motivated by racism, bigotry, or other forms of hatred.”
Texas Man Sentenced to 4 Years in Federal Prison for Distributing Anabolic Steroids through the MailRead the Press Release
ROCKFORD — A Texas man has been sentenced to four years in federal prison for distributing anabolic steroids through the mail.
DAVID E. HUTCHINSON, 47, of Georgetown, Texas, pleaded guilty earlier this year to one count of distributing anabolic steroids. U.S. District Judge John R. Blakey imposed the prison sentence Thursday after a hearing in federal court in Rockford.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The government was represented by Assistant U.S. Attorney Talia Bucci.
According to a written plea agreement, Hutchinson, who used the name “Robolics,” distributed anabolic steroids through the U.S. mail from at least January to November of 2019. Hutchinson sold a variety of products containing anabolic steroids. He advertised the steroids through online forums, both directly and through sales representatives. He took orders via email, and he accepted payment either by cash mailed to a fictitious company or via bitcoin transfer. Upon payment, Hutchinson shipped orders of anabolic steroids to customers in multiple states. Hutchinson admitted in the plea agreement that he mailed several parcels containing anabolic steroids to a location in Algonquin, Ill. The shipments fulfilled orders that were placed by federal law enforcement acting in an undercover capacity.
When law enforcement executed a search warrant at Hutchinson’s then-residence in North Carolina on Nov. 21, 2019, Hutchinson was found to be in possession of more than 6,900 grams of anabolic steroids in powder form, several U.S. mail parcels containing anabolic steroids that Hutchinson had packaged for shipment, various mixing and packaging materials, several firearms, a safe containing more than $88,000 in cash, and a cryptocurrency hard wallet containing approximately $87,332 in cryptocurrency. Hutchinson admitted in the plea agreement that on Nov. 18, 2019, he delivered to a post office in North Carolina a parcel containing samples of his product that he was shipping to Slovakia for chemical analysis. The following day, he delivered to the post office nine parcels containing anabolic steroids that he was mailing to customers.
Texas Man Sentenced for Possession with Intent to Distribute FentanylRead the Press Release
Acting United States Attorney Steven Russell announced that Ezekiel Fernandez, II, 32, of Highlands, Texas, was sentenced today in federal court in Lincoln, Nebraska. United States District Judge John M. Gerrard sentenced Fernandez to 57 months in prison for possession with intent to distribute 400 grams or more of a mixture containing fentanyl. After serving his sentence, Fernandez will be placed on supervised release for 2 years. There is no parole in the federal system.
On May 27, 2021, a Lancaster County Sheriff’s deputy pulled a vehicle over for a traffic violation along Interstate 80 in Lancaster County, Nebraska. Fernandez was identified as the driver. After the traffic stop, a K9 was called and deployed around the vehicle. The K9 alerted and indicated to the presence of narcotics odor in the vehicle. Law enforcement searched the vehicle and found a duffle bag in the back seat with around $30,000 in US currency. Fernandez later agreed to forfeiting that currency. Officers also found a bag with a large number of blue pills in the front seat. The blue pills were sent to a lab for testing, and the lab confirmed that the pills contained fentanyl and weighed about 1.07 kilograms.
This case was investigated by the Lancaster County Sheriff’s Office and the Drug Enforcement Administration.
Texas Man Charged with Using Drone to Deliver Contraband to PrisonRead the Press Release
A Smithville man who allegedly flew a drone loaded with drugs and other contraband into prison has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Bryant LeRay Henderson, 42, was arrested at his residence on Thursday, charged via criminal complaint with one count of attempting to provide contraband in prison, one count of serving as an airman without an airman’s certificate, and one count of possession with intent to distribute a controlled substance. He will make his initial appearance before U.S. Magistrate Judge Jeffrey L. Cureton at 11 a.m. today.
“Contraband drone deliveries are quickly becoming the bane of prison officials’ existence. Illicit goods pose a threat to guards and inmates alike – and when it comes to cell phones, the threat often extends outside prison walls. We are determined to stop this trend in its tracks,” said U.S. Attorney Chad Meacham.
“The criminal element will always take advantage of new opportunities for illegal activity as technology progresses,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “In this instance, excellent collaborative investigation among federal and local agencies led to multiple federal charges and prevented contraband from entering the federal prison system.”
According to court documents, Mr. Henderson allegedly flew a DJI Inspire drone into the airspace over FMC Fort Worth, a federal correctional in the south part of the city, just before midnight on Wednesday, May 4. The drone crashed inside a secure, fenced-in yard near the prison’s HVAC shop, where staff recovered it. Affixed to the drone was a package containing 46 grams of crystal methamphetamine, 87 grams of pressed THC, two prepaid smartphones, and nine mp3 players.
Law enforcement pulled surveillance video from a nearby high school and observed a young male drive up in a red Chevy Tahoe with a Transformers decal on the rear window, remove a drone and a package from the vehicle, launch the drone towards the prison, and then drive off:
In a review of other surveillance footage, law enforcement identified a red Tahoe with an identical Transformers decal. From that footage, they were able to pull a license plate number. Two and a half weeks later, officers found the Tahoe abandoned in a travel lane, flashers on and hood up. It was impounded and later searched.
Inside the vehicle, law enforcement found Mr. Henderson’s debit card, a DJI drone controller, various drone accessories (rechargeable batteries, a propeller box, and dropping mechanisms), 18 smartphones, tobacco products, and vacuum-packed containers with steroid labels connected to a fishing line and a key ring.
They later powered on the controller recovered from the car next to the drone recovered from the prison yard. The devices immediately paired. From the drone, investigators recovered 70 usable flight logs, which included date/time stamps as well as speed, height, and location data. They identified four flights that intruded into FMC Fort Worth’s airspace, and another two that intruded into airspace over FCI Seagoville, another federal correctional center southeast of Dallas.
Law enforcement then queried Mr. Henderson’s records and found that the phone was near FMC Fort Worth around the time of the drone cash, and near FCI Seagoville near the time of the drone’s flight into the prison’s airspace.
The Department of Transportation Office of Inspector General queried the FAA’s database and reported that Mr. Henderson did not possess an airman’s certification, and that the drone in question was registered to another owner who cancelled his registration in August 2018. FAA records confirmed that the federal correctional institutions were restricted flight areas.
Drone delivery of contraband is an increasingly vexing problem for the Federal Bureau of Prisons and state corrections officials. Just last month, a 44-year-old Houston man was charged in the Eastern District of Texas for allegedly operating a drone over FCI Beaumont in east Texas. In April, a 30-year-old former inmate pleaded guilty to conspiring to smuggle phones and tobacco into FCI Fort Dix in New Jersey. And last fall, three Atlanta men were sentenced to a year each in federal prison for using drones to smuggle contraband into Telfair State Prison in Georgia.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Henderson is presumed innocent until proven guilty in a court of law.
If convicted he faces up to 45 years total in prison: 20 years for attempting to provide contraband in prison, 5 years for serving as an airman without an airman’s certificate, and 20 years for possession with intent to distribute a controlled substance.
The Federal Bureau of Investigation’s Dallas Field Office – Fort Worth Resident Agency, the Bureau of Prisons Special Investigative Staff, and the Fort Worth Police Department conducted the investigation with the assistance of the Department of Transportation Office of Inspector General, the Federal Aviation Administration, and the Dallas Police Department. Assistant U.S. Attorney Levi Thomas is prosecuting the case.
Tarboro Man Sentenced to More Than Seven Years in Prison for Firearm OffenseRead the Press Release
WILMINGTON, N.C. – A Tarboro man was sentenced today to 90 months in prison for possession of a firearm by a convicted felon. On April 21, 2022, Marquavis Keyon Jones pled guilty to the charge.
According to court documents, on October 22, 2020, officers with the Rocky Mount Police Department encountered Jones at his residence while investigating a robbery. Jones appeared at the door with a firearm loaded with a high-capacity magazine around his neck. Upon entering, officers directed Jones to show his hands and set down the firearm. Jones eventually placed it against a door frame and while investigators were securing the weapon and speaking with other occupants, Jones fled on foot. Warrants were obtained and served on December 5, 2020, following a high-speed chase when Jones fled from a routine traffic stop in Enfield, NC.
In addition to the October 2020 incident, evidence presented at sentencing established that, on May 21, 2021, officers again responded to Jones’ residence for a shots-fired call. Multiple witnesses indicated that Jones retrieved an AR-style rifle from his house and fired numerous shots hitting nearby vehicles and residences. Based on witness accounts and evidence recovered from the scene, investigators were able to identify Jones as the shooter, and recovered the rifle from under a nearby abandoned trailer where a vehicle associated with Jones was parked. A subsequent search warrant at the residence recovered another firearm, several personal effects of Jones in the residence, live rounds of ammunition, including several that matched the shell casings outside the residence and which ballistics confirmed were fired from the rifle recovered from the abandoned trailer.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Rocky Mount Police Department investigated the case. Former Assistant U.S. Attorney John Parris and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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 No. 5:21-CR-00372-M.
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Tallahassee Woman Convicted in Murder-For-Hire PlotRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee convicted Gretchen Buselli (a/k/a “Gretchen Yarbrough”), 48, of Tallahassee, Florida, of use of an interstate commerce facility in the commission of murder-for-hire and making a false statement to a federal officer. The guilty verdict, returned today, at the conclusion of a five-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
Evidence introduced during the trial revealed between on or about June 17, 2021, and on or about September 16, 2021, Buselli used the U.S. mail and a facility of interstate commerce, a cellular phone, with the intent that a murder be committed in violation of the laws of the State of Florida. Testimony revealed that Buselli communicated with an acquaintance via the U.S. mail, telephone calls, text, and an encrypted mobile application to solicit the murder of her estranged husband. The acquaintance reported Buselli’s request to law enforcement, who then engaged an undercover agent to further the investigation. Buselli communicated her desire to have her estranged husband killed to the undercover agent, providing a description of the intended victim, his whereabouts, and his routines. In subsequent conversations with the undercover agent, Buselli negotiated the price for committing the murder and discussed the manner in which the act would take place, acknowledging that she would be interviewed by law enforcement thereafter. Buselli was later surveilled depositing the agreed upon $5,000 payment at a public park. Following her delivery of the payment, agents observed Buselli dispose of the clothing she had worn during delivery of the payment. After being advised by the undercover agent that her estranged husband had been killed, Buselli stated, thank you. When later questioned by law enforcement, Buselli made multiple false statements denying her involvement in the plot and her desire to have her estranged husband killed.
Buselli’s sentencing hearing is scheduled for October 27, 2022, at 10:00 a.m., at the United States Courthouse in Tallahassee before United States Chief District Judge Mark E. Walker. Buselli faces up to ten years’ imprisonment for the use of interstate commerce facility in the commission of murder-for-hire charge and up to five years imprisonment for making the false statement to a federal officer.
This conviction was the result of a joint investigation by the Federal Bureau of Investigation, Tallahassee Police Department, and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Eric Mountin and Kaitlin Weiss.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Stockton Doctor and Medical Practice Agree to Pay Nearly $2 Million to Resolve Allegations of Health Care FraudRead the Press Release
SACRAMENTO, Calif. — Azizulah “Aziz” Kamali and his medical corporation, Aziz Kamali, M.D. Inc., have agreed to pay $1,963,953 to resolve allegations that they violated the False Claims Act by submitting millions of dollars of false claims to Medicare for surgically implanted neurostimulators and paying kickbacks to sales marketers, U.S. Attorney Phillip A. Talbert announced today.
According to the settlement, Dr. Kamali and his medical corporation admitted that they submitted claims to Medicare for surgically implanted neurostimulator devices even though they did not perform surgery or implant neurostimulators. Dr. Kamali and Kamali Inc. admitted that they instead taped a disposable electroacupuncture device called “Stivax” to their patients’ ears. Stivax devices do not require surgical implantation and are not reimbursable by Medicare. The government alleges that this conduct violated the False Claims Act.
“The defendants falsely claimed that they conducted expensive and invasive surgical procedures to dishonestly obtain millions of dollars from Medicare,” said U.S. Attorney Talbert. “Working with our partners at the Department of Health and Human Services, we identified a substantial number of false claims that enabled our Office to make a significant recovery of taxpayer dollars.”
“This provider egregiously exploited the trust of his patients for illegitimate financial gain,” said Steven J. Ryan, Special Agent in Charge with the HHS-OIG. “HHS-OIG will not hesitate to investigate and thwart any attempts at defrauding federal health care programs.”
Dr. Kamali and his medical corporation also admitted that they paid a marketing company a percentage of the reimbursements they received from Medicare for billing implantable neurostimulators, in return for the marketing company arranging for and recommending that patients order Stivax from them. The United States alleges that this conduct violated the Anti‑Kickback Statute and the False Claims Act.
In addition to paying the civil settlement, Dr. Kamali and Kamali Inc. have agreed to enter into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The Integrity Agreement requires that Dr. Kamali and Kamali Inc. implement specific compliance measures, including training on applicable health care fraud laws and contracting with an Independent Review Organization that will conduct third-party audits of the medical necessity of their Medicare claims.
HHS-OIG conducted the investigation. Assistant U.S. Attorney Matthew R. Belz handled the case for the United States.
St. Augustine Man Pleads Guilty to Remotely Deleting Contents of His iPhone After Federal Agents Seized It During the Execution of A Search WarrantRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Gabriel Basart (33, St. Augustine) today pleaded guilty to destroying evidence with the purpose of preventing and impairing the United States’ lawful authority to take and search that evidence pursuant to a lawful search warrant. Basart faces a maximum penalty of five years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, Basart is the president of GB Blue Tech Inc. This company ostensibly operated out of Basart’s home, had no other employees, and maintained accounts at four banks. In September and October 2017, those bank accounts were used in a series of business email compromise fraud schemes. Perpetrators of the schemes sent emails to corporate employees that appeared to be – but were not – legitimate correspondence either from within the company or from suppliers. These fraudulent emails contained wire transfer instructions directing employees to wire funds to GB Blue Tech bank accounts. Investigators determined that the fraudulent emails originated in various locations (principally in Nigeria), but not in St. Augustine, where Basart lived. Believing the fraudulent wire transfer instructions in these emails to be legitimate, the victim-employees relied upon them to complete transfers to the GB Blue Tech bank accounts, which were controlled by Basart.
After funds were transferred to GB Blue Tech’s accounts, on certain occasions, the fraud was detected and the funds were either returned to their legitimate owner or frozen in place by the banks. On other occasions, when the fraud was not detected in time, the bulk of the money was transferred to business accounts in the People’s Republic of China. The remainder was either transferred to Basart’s personal bank accounts or withdrawn in cash. A total of approximately $22,192 was transferred (electronically or by check) to Basart’s personal bank accounts and approximately $41,000 total in cash was withdrawn.
On March 9, 2018, after obtaining a federal search warrant, a team of law enforcement officers and agents went to Basart’s home to search it and his electronic devices. Basart was present as the agents seized various electronic devices, including Basart’s iPhone. After an agent read Basart the search warrant, Basart demanded that he be permitted to leave. The agents told Basart that he could not take any items with him, but that he was free to leave his home, which he did.
Later that day, an agent observed that Basart’s iPhone had been “factory reset.” In other words, all user created data (such as text messages and emails) had been deleted from the iPhone and it had been restored to the original state of a device, as if it were new from the factory. A forensic examination of the phone and records from the Apple Corporation later established that after Basart left the agents behind at his home, he logged into his Apple account and remotely factory reset his phone, deleting all user created data.
In addition to pleading guilty to deleting the contents of his phone, Basart has agreed to forfeit $533,950.50, which are traceable to proceeds of the business email compromise schemes. Further, Basart has agreed to pay restitution to the victims of those schemes in the amount of $405,719.11.
This case was investigated by the Florida Department of Law Enforcement and the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
South Bend Man Sentenced to 68 Months in PrisonRead the Press Release
SOUTH BEND – Jonnie Jones-Gunn, 31 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Jones-Gunn was sentenced to 68 months in prison followed by 2 years of supervised release.
According to documents in the case, in March of 2021, police officers tried to pull over Jones-Gunn while he was driving more than 20 miles per hour over the speed limit. Jones-Gunn led officers on a short pursuit before stopping his car. Officers recovered a stolen gun with a 30-round capacity magazine from his vehicle. Jones-Gunn’s prior multiple felony convictions, any one of which prohibits him from possessing a firearm, include attempted robbery, burglary, and being a felon carrying a handgun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the St. Joseph County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Jerome McKeever.
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.
Sioux Falls Man Sentenced to 35 Years for Drug Distribution Resulting in Two DeathsRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man convicted of conspiracy to distribute heroin and two counts of distribution of fentanyl resulting in death was sentenced on August 10, 2022, by U.S. District Judge Karen E. Schreier.
Jeffery Darnell Moore, age 53, was sentenced to 35 years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Restitution was also ordered.
Moore was indicted for conspiracy to distribute a controlled substance and two counts of distribution of a controlled substance resulting in death by a federal grand jury in July of 2020. He was convicted of these charges by a jury on May 13, 2022.
On or about November 2, 2018, Moore knowingly and intentionally distributed fentanyl, a Schedule II controlled substance, and the distribution of said fentanyl resulted in the death of an individual.
Then, on or about June 15, 2019, Moore again knowingly and intentionally distributed fentanyl, a Schedule II controlled substance, and the distribution of said fentanyl resulted in the death of a second individual.
Additionally, beginning on a date unknown and continuing until on or about July of 2020, in the District of South Dakota and elsewhere, Moore knowingly and intentionally combined, conspired, confederated, and agreed together, with others known and unknown, to knowingly and intentionally distribute heroin, a Schedule I controlled substance.
This case was investigated by the Sioux Falls Area Drug Task Force, Drug Enforcement Administration, and Homeland Security Investigations. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Moore was immediately remanded to the custody of the U.S. Marshals Service.
Savannah rapper admits COVID-19 relief fraud, drug possessionRead the Press Release
SAVANNAH, GA: A Chatham County man could face up to nearly three decades in in prison after admitting he fraudulently obtained funds intended for COVID-19 small business assistance and possessed illegal drugs.
Brandon Lamar Williams, a/k/a “NH Skilo,” 30, of Savannah, awaits sentencing after pleading guilty to Wire Fraud and two counts of Possession of Marijuana, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Williams’ guilty plea subjects him to a statutory penalty of up to 26 years in prison, and because he has prior felony drug convictions he faces a mandatory minimum of 90 days in prison, in addition to substantial financial penalties and restitution, followed by up to three years of supervised release upon completion of any prison term.
There is no parole in the federal system.
“With our law enforcement partners, we continue to identify and hold accountable the fraudsters who illegally tapped into the more than $650 billion Congress appropriated for small business relief during the pandemic,” said U.S. Attorney Estes. “Brandon Lamar Williams is learning that there is a price to pay for stealing from taxpayers.”
As described in court documents and proceedings, Williams, who performs under the name NH Skilo, in mid-2021 provided false information in loan applications to the Small Business Administration for economic assistance under the Coronavirus Aid, Relief, and Economic Security Act’s Paycheck Protection Program. Williams obtained more than $40,000 from a lender participating in the program.
Williams also admitted to two counts of possession of marijuana related to an August 2021 traffic stop by Savannah Police, and to marijuana in his possession when he was arrested in January 2022. He has prior felony drug convictions in federal and state court. U.S. District Court Judge William T. Moore Jr. will schedule sentencing following an investigation by U.S. Probation Services.
“Law enforcement is at its best when we all come together to enhance public safety,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “ATF is always looking for creative ways to work with our law enforcement partners to make our jurisdictions safer together.”
“Fraudsters seeking to use falsified information to defraud SBA programs will be brought to justice,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
Acting SBA General Counsel Therese Meers stated: “I commend the efforts of the United States Attorney’s Office for the Southern District of Georgia in bringing this case and the results achieved. It is emblematic of the ongoing efforts of federal law enforcement to exert every effort to uncover, and forcefully respond to, fraud committed by individuals seeking to abuse SBA’s assistance programs. Identifying, and aggressively pursuing, fraudulent activity which harms not only the agency’s financial assistance programs, but those in our communities that are the intended beneficiaries of such program is one of SBA’s top priorities.”
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with assistance from the Small Business Administration Office of Inspector General, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Richardson County Man Sentenced on Drug ChargesRead the Press Release
Acting United States Attorney Steven Russell announced that Michael Tinsley, 47, was sentenced on August 11, 2022, in federal court in Lincoln, Nebraska, for conspiracy to distribute methamphetamine. United States District Judge John M. Gerrard sentenced Tinsley to 184 months’ imprisonment. There is no parole in the federal system. After his release from prison, Tinsley will begin a 5-year term of supervised release.
In December 2020, a Richardson County Deputy Sheriff attempted to stop a red Chevy Avalanche driven by Tinsley. He fled from the deputy at a high rate of speed. Minutes later, the deputy found the Avalanche abandoned in a ditch. During an inventory search of the car, investigators found methamphetamine, syringes, spoons with residue, two scales, and two cell phones. The deputy obtained a search warrant for the Chevy Avalanche and for the cell phones. During a search of the seized cell phones, investigators found evidence of drug distribution by Tinsley. The methamphetamine was tested and confirmed to be at least 120 grams of pure methamphetamine.
Several witnesses told investigators that Tinsley had been selling them methamphetamine in varying quantities in 2019 and 2020.
On January 4, 2021, Tinsley was arrested at a Lincoln hotel by a Lancaster County Sheriff’s Deputy. He had approximately 7.6 grams methamphetamine and a pipe on his person. He admitted he had used methamphetamine in the past and admitted that he had methamphetamine on his person.
This case was investigated by the Richardson County Sheriff’s Office and the Drug Enforcement Administration.
Queens Postal Workers Charged with Bribery Scheme and Theft of Mail Linked to Covid-19 Benefits FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Daniel B. Brubaker, Inspector in Charge, New York Division of the United States Postal Inspection Service (“USPIS”), Matthew Modafferi, Special Agent-in-Charge of the Northeast Area Field Office of the U.S. Postal Service, Office of Inspector General (“USPS-OIG”), Jonathan Mellone, Special Agent-in-Charge of the New York Regional Office of the U.S. Department of Labor Office of Inspector General (“DOL-OIG”), and Sharon MacDermott, Special Agent-in-Charge of the Boston-New York Field Division of the U.S. Social Security Administration Office of Inspector General (“SSA-OIG”), announced today charges against OSCAR ABREU, RAFAEL GRULLON, and ALDO PALOMINO, JR., in connection with their participation in a conspiracy to receive bribes and steal hundreds of pieces of mail linked to a COVID-19 benefits scheme that sought to obtain millions of dollars in fraudulent unemployment benefits from the New York State Department of Labor (“NYS DOL”). OSCAR ABREU was arrested yesterday morning in White Plains, New York and was presented later that day before United States Magistrate Judge Paul E. Davison. RAFAEL GRULLON and ALDO PALOMINO, JR. were arrested this morning in Queens, New York, and were presented this afternoon before Magistrate Judge Davison.
U.S. Attorney Damian Williams said: “As alleged, the defendants accepted bribes and stole hundreds of pieces of mail, abusing the public trust placed in them as employees of the U.S. Postal Service and enabling the perpetration of a multi-million-dollar scheme to obtain fraudulent COVID-19 unemployment benefits. My Office and our partners in law enforcement will continue to hold accountable the individuals who defraud government benefit programs as well as anyone else who enables them to do so."
USPIS Inspector in Charge Daniel B. Brubaker said: “It is a sad day when postal employees allegedly aid other conspirators to commit identify theft. Their actions affected hundreds of innocent victims by enabling their fellow criminals to illegally receive Covid-19 unemployment benefits through the U.S Mail. These Letter Carriers have betrayed the public and showed a total disregard for honesty and the public trust that was placed with them. Thankfully however, these instances are few and far between, as the hard-working men and women of the U.S. Postal Service continue to deliver mail with pride and integrity on a daily basis to every doorstep in the nation. Customers should know, no matter where crime is found, Postal Inspectors and their law enforcement partners will bring the perpetrators to justice. I would like to thank our law enforcement partners for their dedication and hard work on this case.”
USPS-OIG Special Agent-in-Charge Matthew Modafferi said: “The Special Agents of the USPS OIG will vigorously investigate Postal Service employees who comprise their integrity for personal gain. This case serves as an excellent example of the successful collaboration between the USPS OIG, our law enforcement partners and the U.S. Attorney’s Office to pursue and prosecute Postal Service employees involved in criminal activity. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
DOL-OIG Special Agent-in-Charge Jonathan Mellone said: “An important mission of the Office of Inspector General is to investigate allegations relating to Unemployment Insurance Fraud. We will continue to work with our law enforcement partners to investigate these types of allegations.”
SSA-OIG Special Agent-in-Charge Sharon MacDermott said: “Today’s arrest results from our collective law enforcement efforts to pursue those who have devised schemes to defraud federal benefit programs and taxpayers of much needed resources by misusing identities of innocent people. I thank the U.S. Postal Inspectors, U.S. Postal Service OIG, Homeland Security Investigations, and the Department of Labor OIG for their major efforts leading to these arrests. I also thank the U.S. Attorney’s Office for their pursuit of justice in this matter.”
As alleged in the Complaints filed yesterday and today in White Plains federal court:[1]
From at least in or about July 2020 to in or about December 2020, OSCAR ABREU, RAFAEL GRULLON, and ALDO PALOMINO, JR., while employed as letter carriers with the U.S. Postal Service and working in Queens, New York, accepted cash bribe payments to intercept and steal mail sent by the NYS DOL to specific addresses along their assigned postal routes. ABREU was first approached by a co-conspirator (“CC-1”) in or about mid-2020 and agreed to accept $200 for every NYS DOL envelope he intercepted and turned over to CC-1. The payment later increased to $500 per NYS DOL envelope, and, at CC-1’s request, ABREU eventually recruited two more letter carriers, GRULLON and PALOMINO, JR. CC-1 agreed to pay $200 per NYS DOL envelope that GRULLON and PALOMINO, JR. intercepted, $100 of which ABREU retained.
The stolen NYS DOL mail was linked to a scheme perpetrated by CC-1 and others to obtain COVID-19 unemployment benefits through the fraudulent filing and verification of benefit claims using the names and social security numbers of hundreds of other individuals. The scheme required numerous addresses to which CC-1 and her co-conspirators could direct NYS DOL mailings related to the fraudulent claims. Law enforcement agencies were first alerted to the scheme after CC-1 and another co-conspirator, CC-2, fled a Yonkers hotel in December 2020, leaving behind in their previously occupied room over 700 pieces of NYS DOL mail, containing, among other items, benefit debit cards. The stash of stolen NYS DOL mail was tied to over 500 unemployment benefit claims seeking in excess of $16 million in benefits, approximately $3 million of which had already been disbursed by December 2020.
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OSCAR ABREU, 41, of South Ozone Park, New York, RAFAEL GRULLON, 40, of Manhattan, and ALDO PALOMINO, JR., 30, of Long Island City, New York, are charged with conspiracy to commit theft and receipt of stolen mail, which carries a maximum sentence of five years in prison; theft of mail by Postal officer or employee, which carries a maximum sentence of five years in prison; and conspiracy to receive bribes, which carries a maximum sentence of 15 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the USPIS, the USPS-OIG, the DOL-OIG, the SSA-OIG, the NYS DOL, the City of Yonkers Police Department, Homeland Security Investigations, and the New York City Police Department. Mr. Williams noted that the investigation is ongoing.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Kevin Sullivan is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Pukwana Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Pukwana, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Kelly Wayne McGhee, Jr., age 33, was indicted in August of 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 8, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on between March 1, 2022, and July 23, 2022, McGhee, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, knowingly failed to register and update his registration.
The charge is merely an accusation and McGhee is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
McGhee was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for October 11, 2022.
Port Vue Felon Charged with Illegally Possessing a Gun and AmmunitionRead the Press Release
PITTSBURGH, PA. - A resident of Port Vue, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment, returned on August 9, named Nafis Hurt, 30, as the sole defendant.
According to the Indictment, Hurt is alleged to have possessed a firearm and ammunition as a convicted felon on or about March 22, 2022. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, Drug Enforcement Agency, and Allegheny County Sheriff’s Department conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Platinum Partners Portfolio Manager Daniel Small Convicted of Defrauding Bondholders in a Multi-Million Dollar SchemeRead the Press Release
Daniel Small, a former portfolio manager for Platinum Partners L.P. (Platinum), was convicted today by a federal jury in Brooklyn on charges of securities fraud and securities fraud conspiracy for his role in defrauding the bondholders of Black Elk Energy (Black Elk), an oil company that was one of Platinum’s largest assets, by rigging a consent solicitation vote. The verdict followed a two-week trial before United States District Court Judge Brian M. Cogan.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the verdict.
"Small and his co-conspirators engaged in a scheme to deceive the bondholders of Black Elk by rigging the vote to enrich themselves,” stated United States Attorney Breon Peace. “Today’s verdict demonstrates this Office’s dedication to prosecuting those who refuse to play by the rules and defraud others. This Office will pursue justice without fear or favor no matter the obstacles.”
Mr. Peace thanked the Securities and Exchange Commission, New York Regional Office for their significant cooperation and assistance during the investigation.
"Mr. Small and his co-conspirators, fueled by their own self-interest and avarice, purposely cheated their investors. Today the jury held Mr. Small accountable for his actions, another step in the process of getting justice for his victims. The FBI and our partners remain committed to holding actors who defraud and manipulate investors responsible for their crimes so the public maintains its confidence in the integrity of our financial markets,” stated FBI Assistant Director-in-Charge Driscoll.
USPIS Inspector in Charge Daniel B. Brubaker said: “Daniel Small, former Managing Director of Platinum Partners, conspired in an elaborate scheme to fraudulently divert millions in proceeds from bond investors to Platinum Partners. This scheme was artfully concealed through what appeared to be a series of legitimate events. Nonetheless, it was an outright multi-million dollar theft from innocent victims. The United States Postal Inspection Service has a long and proven history of investigating egregious Wall Street Security Frauds such as these. Small’s conviction represents our dedication to help maintain an honest and fair trading environment across all publicly traded companies."
Platinum was a New York City-based hedge fund founded in 2003. The evidence at trial established that between approximately November 2011 and December 2016, Small, along with co-conspirators including Mark Nordlicht, the founder and Chief Investment Officer of Platinum, and David Levy, the co-Chief Investment Officer of Platinum, orchestrated a fraudulent scheme to defraud third-party holders of Black Elk’s publicly traded bonds (the bondholders) by diverting to Platinum the proceeds from the sale of the vast majority of Black Elk’s most lucrative oil fields even though the bondholders had priority over Platinum’s equity interests.
To execute this scheme, in early 2014, Small, Nordlicht, Levy and others caused Platinum to secretly purchase Black Elk bonds on the open market and gain control of $98 million of the $150 million of outstanding bonds. The bonds were then transferred through a number of related entities to conceal their ownership and control by Platinum. Small, Nordlicht, Levy and their co-conspirators then rigged a consent solicitation vote to amend the Black Elk indenture so that the proceeds from the sale of Black Elk’s best assets would be paid to the preferred equity – which was held by Platinum and Platinum insiders – ahead of the other bondholders. Notably, non-Platinum related bondholders overwhelmingly voted against changing the indenture; one testified that bondholders would never knowingly give up being “as senior as possible in the capital structure” for “nothing” in return, which he characterized as an “irrational choice.”
After the rigged vote was complete, Small, Nordlicht, Levy and their co-conspirators took millions of dollars from the asset sale for themselves, family members and friends, including approximately $7 million to Nordlicht’s father, approximately $250,000 to Levy, approximately $100,000 to Small and approximately $2 million to the brother of another co-conspirator.
In July 2019, Nordlicht and Levy were convicted on the same charges by a federal jury following a two-month trial. Both defendants are awaiting sentencing.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys David Pitluck, Lauren Elbert and Nicholas Axelrod are in charge of the prosecution.
The Defendants:
DANIEL SMALL
Age: 53
New York, New YorkMARK NORDLICHT
Age: 54
New Rochelle, New YorkDAVID LEVY
Age: 37
New York, New YorkE.D.N.Y. Docket No. 16-CR-640 (BMC)
Pittsburgh Felon Indicted on Robbery and Firearms OffensesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal robbery and firearms laws, United States Attorney Cindy K. Chung announced today.
The five-count Indictment, returned on August 9, named Marcus Allen Wells, 28, formerly of the City’s Glen Hazel neighborhood, as the sole defendant.
According to the Indictment, on or about Dec. 10, 2021, Wells committed three Hobbs Act Robberies and brandished a firearm during and in relation to a crime of violence. These robberies are alleged to have happened at a Sunoco on Craft Avenue in Pittsburgh, a Shell gas station on Baum Boulevard in Pittsburgh, and at a Sunoco on Duquesne Boulevard in Duquesne.
Wells is also alleged to have possessed a firearm and ammunition as a convicted felon on or about Dec. 16, 2021.
The law provides for a maximum total sentence of life in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peoria Man Convicted of Possession of Cocaine with Intent to Distribute and Federal Firearm OffensesRead the Press Release
PEORIA, Ill. – On August 10, 2022, a federal jury returned guilty verdicts against Daryl G. McGhee, 33, of the 6000 block of North Hamilton, in Peoria, Illinois, for the offenses of possession of cocaine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. McGhee was previously convicted by a separate jury on November 3, 2021, of the offense of possession of a firearm as a felon, arising from the same conduct, all occurring on February 13, 2021.
Over the course of the three-day trial, the government presented evidence that on February 13, 2021, Peoria Police were dispatched to McGhee’s residence at approximately 4:30 a.m. on a report of domestic violence. Upon arrival, police learned that McGhee had left the residence out the back door on foot in the bitter sub-zero temperatures and was in possession of a firearm. An officer then tracked McGhee’s footprints in the freshly fallen snow and located him crouched down and hiding in an evergreen bush several blocks from his home. McGhee was not wearing a gloves or a winter coat. He was in possession of a cell phone and $381 cash. After McGhee was arrested, a Peoria Police K-9 unit was utilized to search the surrounding area and the service dog, “Tibo”, a Belgian Malinois, located a leather shoulder satchel concealed under a dumpster alongside McGhee’s footprints in the snow. The satchel contained 140 grams of cocaine and 9mm semi-automatic DVC Tactical model 1911 handgun loaded with 17 rounds of ammunition. A round of ammunition was located in the chamber of the gun, indicating it was ready to be fired. The government also introduced an image from McGhee’s social media account where he was wearing the leather bag, as well as a video from social media where he was depicted brandishing the DVC 9mm handgun.
A federal grand jury indicted McGhee in March 2021 and returned a superseding indictment in September 2021. He was tried and convicted on the felon-in-possession-of-a-firearm charge in the superseding indictment on November 3, 2021.
McGhee remains in the custody of the U.S. Marshals Service. At sentencing, McGhee faces statutory penalties of up to 30 years’ imprisonment, a maximum $2,000,000 fine, and no less than six years of supervised release for possession of cocaine with intent to distribute; up to 10 years’ imprisonment and three years of supervised release for possession of a firearm as a felon; and not less than five years’ imprisonment for possessing a firearm in furtherance of a drug trafficking crime, to be served consecutively with other charges.
The case investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department. Assistant U.S. Attorneys Ronald L. Hanna and Douglas F. McMeyer represented the government at trial.
The case against McGhee 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.
Owner of Medford Construction Company Indicted for $11 Million Tax Offenses and Making False StatementRead the Press Release
BOSTON – A former Quincy man has been indicted by a federal grand jury in connection with a tax fraud scheme that resulted in a tax loss of approximately $4.4 million and allegedly making false statements about a fatal workplace accident.
Mauricio Baiense, 55, was indicted on one count of conspiracy to defraud the United States, seven counts of failure to collect and pay over taxes, one count of aiding and assisting in the preparation of a false tax return, and one count of making false statements. Baiense was released on conditions following an initial appearance before U.S. District Court Magistrate Judge Jennifer C. Boal on Aug. 8, 2022
According to the indictment, Baiense owned and operated Contract Framing Builders, Inc. (CFB), a Medford-based construction business. Baiense was responsible for filing CFB’s quarterly employment tax returns and collecting and paying over to the IRS payroll taxes withheld from the wages of the company’s employees. It is alleged that, from approximately 2013 through 2017, Baiense facilitated having approximately $11 million worth of checks drawn on CFB’s corporate bank account to purported subcontractors, which were in fact nominee entities allegedly controlled by him. Baiense allegedly then cashed or directed others to cash the checks at a check cashing business and used the money to operate an “off-the-books” cash payroll for CFB’s employees. It is alleged that Baiense did not report the cash wages to the IRS and did not pay employment taxes on wages paid to employees in cash. Baiense also allegedly assisted in the preparation of at least one fraudulent employment tax return that understated the actual wages paid to CFB’s employees.
It is further alleged that Baiense made a false statement to federal investigators when questioned under oath at a U.S. Department of Labor Occupational Safety and Health Administration (OSHA) hearing regarding a fatal workplace accident.
The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of failure to collect and pay over taxes each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aiding and assisting in the preparation of a false tax return provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $250,000. The charge of making a false statement provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; Galen Blanton, Regional Administrator of the Department of Labor OSHA Region 1; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General in Boston made the announcement. Assistance in the investigation was also provided by the Department of Homeland Security, OSHA Criminal Investigations Team, Region 1, and the Department of Labor, Office of Inspector General. Assistant U.S. Attorney David Tobin of Rollins’ Major Crimes Unit and Trial Attorney Thomas F. Koelbl of the Justice Department’s Tax Division are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Oklahoma Man Charged with Possession of Contraband by InmateRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Sapulpa, Oklahoma, man has been indicted by a federal grand jury for Possession of Contraband by Inmate.
Charles Nathaniel Graves, age 36, was indicted in August of 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 5, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 25, 2022, Graves, who had been given a furlough to attend a funeral, came back to the Yankton County Jail with contraband; a substance which tested positive for methamphetamine.
The charge is merely an accusation and Graves is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Graves was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for October 11, 2022.
New York City Man Sentenced for Possessing Ammunition as a FelonRead the Press Release
SYRACUSE, NEW YORK - Stephon Williams, age 38, of Brooklyn, New York, was sentenced yesterday to serve 41 months in federal prison for possessing ammunition as a previously convicted felon. The announcement was made by United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office, and Timothy Walker, Port Director-Alexandria Bay Port of Entry, U.S. Customs and Border Protection (CBP).
As part of his previous guilty plea in this case, Williams admitted that on September 24, 2021, a vehicle he was driving was stopped and searched by agents of United States Customs and Border Protection (CBP) near Alexandria Bay, New York. During the search, Williams was found in possession of a Glock-style, 9mm semi-automatic pistol, with no serial number, also known as a “ghost gun.” At the time the pistol was located by CBP agents, the pistol contained a 30-round high-capacity magazine with 25 rounds of ammunition. Williams was prohibited from possessing firearms and ammunition due to a previous conviction for Criminal Sale of a Controlled Substance in the Fourth Degree, a Class C felony in the State of New York.
United States District Judge David N. Hurd also imposed a 3-year term of supervised release, which will start after Williams is released from prison.
The case was investigated by the Buffalo Field Office of Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) and was prosecuted by Assistant U.S. Attorney Adrian LaRochelle.
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.
Media Advisory – Press Conference AnnouncementRead the Press Release
CLINTON, N.C. – United States Attorney Michael Easley, along with representatives from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Sampson County Sheriff’s Office will hold a press conference on Monday, Aug. 15 to announce the sentencing of Jimmy McKoy Rouse, a convicted Bloods gang member and large-scale drug trafficker.
WHERE: Sampson County Sheriff’s Office – 112 Fontana Street, Clinton
WHEN: Monday, August15 at 11:00 a.m.
Media, please arrive at by 10:30 a.m. for set up.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at usance.PublicInfoOfficer@usdoj.gov. Please RSVP your intentions to attend the event.
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McLaughlin Man Convicted of First Degree Murder and Firearm ChargeRead the Press Release
United States Attorney Alison J. Ramsdell announced that Casey Lynn Crow Ghost, age 44, of McLaughlin, South Dakota, was found guilty of First Degree Murder and Use of a Firearm During a Crime of Violence that Causes Death as a result of a three-day federal jury trial in Aberdeen, South Dakota. The verdict was returned on August 11, 2022.
The convicted charges carry penalties of mandatory life in prison and a $250,000 maximum fine, as well as a $200 special assessment to the Federal Crime Victims Fund, and restitution.
Crow Ghost was indicted by a federal grand jury in January of 2021.
The conviction stems from the December 12, 2020, shooting death of Crow Ghost's romantic partner in McLaughlin. The victim's body was discovered on December 15, 2020, and an autopsy determined she died from a gunshot wound to the back of the head. Crow Ghost was interviewed by law enforcement and claimed that the shooting was both an accident and a result of self-defense. Evidence gathered by law enforcement showed Crow Ghost murdered the victim with a handgun and did so with premeditation.
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 was investigated by the FBI, the Bureau of Indian Affairs, Office of Justice Services, Standing Rock Agency, and the Corson County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
A presentence investigation was ordered, and a sentencing date was set for October 31, 2022. The defendant was remanded to the custody of the U.S. Marshals Service.
Man Sentenced to Five Years in Prison for Burglaries in Northwest WashingtonRead the Press Release
WASHINGTON – Tyrone Edmondson, 49, who had no fixed address, was sentenced today to a five-year prison term on charges stemming from a series of break-ins in Northwest Washington last fall, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department.
Edmondson pleaded guilty in May 2022, in the Superior Court of the District of Columbia, to charges of second-degree burglary and attempted second-degree burglary. The plea, which was contingent upon the Court’s approval, called for a five-year prison term. The Honorable William W. Nooter accepted the plea today and sentenced Edmondson accordingly. Following his prison term, Edmondson will be placed on three years of supervised release.
According to the government’s evidence, on August 11, 2021, shortly after 6:00 a.m., Edmondson entered an occupied home in the 1500 block of Park Road NW through its kitchen window. The resident was awoken by the noise of Edmondson inside his home and called the Metropolitan Police Department. Edmondson sought to take memorabilia and household items, but was apprehended by the Metropolitan Police Department in the home’s entryway. Edmondson was arrested and charged for this offense but was released on his personal recognizance over the government’s objection. On October 21, 2021, between approximately 4:30 and 5:30 a.m., Edmondson entered a garage appurtenant to a home in the 3600 block of New Hampshire Avenue NW. Edmondson took a large number of household goods, which surveillance footage shows he pushed away in a shopping cart.
Edmonson returned to the home in the 3600 block of New Hampshire Avenue NW shortly after 2:00 a.m. on November 3, 2021. The residents were alerted to Edmondson’s presence in their backyard by a surveillance camera and called the Metropolitan Police Department. Edmondson was arrested by responding officers and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the cases from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Crystal Waddy. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Paul V. Courtney, who investigated and prosecuted the cases.
Man Sentenced for Armed Robbery of Credit UnionRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced Wednesday to almost 12 years in prison for the armed robbery of Call Federal Credit Union in Midlothian.
According to court documents, Okello Chatrie, 27, entered the Call Federal Credit Union in Midlothian on May 20, 2019, demanding money at gunpoint. Chatrie robbed the Credit Union of nearly $200,000. Chatrie pleaded guilty to the robbery of a credit union and brandishing a firearm during that robbery.
When Chatrie entered the Call Federal Credit Union, he presented a bank teller with a note that read, in part, “I got your family as hostage and I know where you live, If you or your coworker alert the cops or anyone your family and you are going to be hurt ... I need at least 100k.” Before the teller could hand over the money, Chatrie brandished a pistol and directed all employees and customers of the bank to kneel down before directing them to an area where a safe was located.
The ensuing investigation ultimately led to the execution of a search warrant at two residences tied to Chatrie. At one residence, law enforcement recovered nearly $100,000 of the stolen money, a money counter, as well as the silver and black 9mm G2C Taurus semiautomatic pistol used during the robbery. At the other residence, law enforcement recovered practice robbery demand notes.
At sentencing, the Court heard testimony from the teller who received Chatrie’s note as well as the bank manager who was ordered at gunpoint to turn over the money. The bank manager called it one of the worst days in his life.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
This case was investigated by FBI Richmond's Central Virginia Violent Crimes Task Force.
Assistant U.S. Attorney s Kenneth R. Simon, Jr. and Peter S. Duffey prosecuted the case. Senior Counsel Nathan Judish of the Computer Crime and Intellectual Property Section of the Department of Justice also served on the prosecution team.
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.
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. 3:19-cr-130.
Local Firm and Owner Sentenced in COVID-19 Fraud SchemeRead the Press Release
Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – August 12, 2022
SAN DIEGO – Eco Shield, LLC and its owner, Samir Haj, were sentenced in federal court today in connection with the importation, shipping and sale of “EcoAirDoctor” during the pandemic.
Haj was sentenced to eight months in custody, and both defendants (Eco Shield and Haj) were ordered to forfeit $427,689 in proceeds and pay restitution of $86,754, while the company was ordered to pay a fine of $42,000. EcoAirDoctor consisted of a small badge clipped to clothing that released chlorine dioxide into the air and was represented by the defendants to protect the user “from airborne infectious diseases” including COVID-19.
Products making these types of public health claims are regulated by the U.S. Environmental Protection Agency (EPA), which requires extensive testing to substantiate the claims of efficacy and safety prior to approving them for registration and sale in the United States. EcoAirDoctor was not registered with the EPA, and testing performed on behalf of the defendants revealed that the badge was not measurably effective “at killing off a useful number of microbes within the air.”
The EcoAirDoctor badge consisted of sodium chlorite and natural zeolite. When the product was opened, the zeolite contacted the sodium chlorite, releasing chlorine dioxide gas. The EPA has established a reference concentration for long-term continuous exposure to chlorine dioxide of 0.00007 parts per million (ppm). Risks from the inhalation of chlorine dioxide are a concern if the air concentrations people are exposed to exceed the reference concentration. The documentation provided by Eco Shield, LLC states that levels below 0.0001 do not kill viruses and claims that the concentration for viral inactivation should be between 0.0001 and 0.1 ppm. Based on these figures, if the defendants’ product emitted chlorine dioxide gas at levels deemed safe by the EPA, it would not be at levels sufficient to kill viruses.
Both sodium chlorite and chlorine dioxide (nonhydrate) fall into Hazard Class 5.1 under the U.S. Postal Service ("USPS") rules and regulations, for which mailing is prohibited. Transportation of these materials via USPS is strictly prohibited, due to the danger of fire and explosion. Chlorine dioxide does not require air for it to burn and can cause coughing, wheezing, and respiratory distress. At very high exposure levels, it can be fatal. Records from Eco Shield, LLC indicated that 1,744 Air Doctor Portables were shipped via the USPS to purchasers across the United States between March 1, 2020, and April 18, 2020. At least 300 of those shipments occurred after the defendants received notice that shipping by mail was unlawful.
The defendants imported the EcoAirDoctor badge from Japan, falsely describing it as air purifiers rather than pesticides, which would have subjected the entry to inspection by the EPA. In addition to falsely describing the nature of the goods, the entry documents undervalued the shipment by over $500,000, allowing the defendants to evade $33,919 in Customs duties. The sentence imposed required the defendants to pay restitution of $86,754 to U.S. Customs to cover the loss of duty and the cost of disposing of seized EcoAirDoctor badges.
The defendants profited handsomely from the sale of the illegally-imported pesticides. At the outset of the pandemic, the badges, purchased for $6.25 each, were then sold to the public in the United States for $20.95 each, plus shipping. During the first six months of 2020, the defendants pocketed $1,132,950 from the sale of the badges, including sales occurring outside the United States. The Federal Trade Commission issued a warning letter, on April 27, 2020, advising the company not to make unsubstantiated claims for Coronavirus protection, and on July 24, 2020, the EPA issued a Stop, Sale, Use or Removal Order. The sentence requires the defendants to forfeit $427,689 in proceeds from the sale of the badges within the United States.
“This product not only didn’t work, but it was even potentially harmful,” said U.S. Attorney Randy Grossman. “The defendant and his company will be held to account for cashing in on Covid fears during a global pandemic.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“The defendants knowingly persisted in their false assertions that their product provided protection against COVID-19,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation program in California. “EPA and its law enforcement partners are committed to holding responsible parties accountable for putting people’s health at risk.”
“Homeland Security Investigations (HSI) along with our government partners are committed to protecting the American public against criminal networks attempting to illegally import and sell products that could endanger lives of U.S. consumers for financial gain,” said HSI San Diego Special Agent in Charge Chad Plantz. “We remain vigilant and will use our broad legal authorities to disrupt and dismantle criminal networks seeking to exploit and benefit from the COVID-19 pandemic.”
“Postal Inspectors remain vigilant in protecting the US Postal Service and the communities we serve. Preventing the dangerous misuse of the nation’s mail system remains one of our top priorities,” stated Inspector in Charge Carroll N Harris.
This case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, Homeland Security Investigations, and the Postal Service. The case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson of the U.S. Attorney's Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice.
DEFENDANTS Case Number 21cr1463-JLS
EcoShield, LLC
Samir Haj Age: 47 San Diego, CA
SUMMARY OF CHARGES
Entry of Goods Falsely Classified – Title 18, U.S.C., Section 541
Maximum penalty: Two years in custody, $250,000 fine, restitution and forfeiture
Mailing of Injurious Substances – Title 18, U.S.C., Section 1716(j)(1)
Maximum penalty: One year in custody, $100,000 fine
Sale/Distribution of Unregistered Pesticide – Title 7, U.S.C., Section 136j(a)(1)(A) and 136l(b)(1)(B)
Maximum penalty: One year in custody, $100,000 fine
AGENCIES
Homeland Security Investigations; U.S. Environmental Protection Agency, Criminal Investigation Division; U.S. Postal Inspection Service
California Department of Toxic Substances Control, Office of Criminal Investigations
*On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Leader of “Mike’s Candyshop” Drug Delivery Service Sentenced to 22 Years in Prison in Connection with the Overdose Death of Colin KrollRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ARIEL TAVAREZ, a/k/a “A,” a/k/a “Mike,” was sentenced to 264 months in prison in connection with his conspiring to distribute heroin, cocaine, fentanyl, and a fentanyl analogue, and to distributing narcotics that caused the 2018 death of Colin Kroll, the co-founder of the video hosting service Vine and the trivia game application HQ Trivia. United States District Judge Katherine Polk Failla imposed yesterday’s sentence.
U.S. Attorney Damian Williams said: “Ariel Tavarez was the leader of Mike’s Candyshop, an illegal on-demand drug delivery service that served deadly narcotics directly to customers in New York City. At Tavarez’s direction, a Mike’s Candyshop courier delivered a fatal dose of heroin laced with a fentanyl analogue to Colin Kroll, co-founder of Vine and HQ Trivia. Along with our law enforcement partners, we will continue to treat overdose deaths as crime scenes, and bring those responsible to justice, as in this case. Tavarez’s lengthy sentence of 22 years in federal prison underscores the grave nature of his conduct, and the devastating harm that dealing deadly, unregulated fentanyl can inflict.”
According to the allegations in the Indictment, and statements made in Court:
TAVAREZ was the leader of a drug trafficking organization (the “DTO”) that engaged in a drug delivery service, which identified itself as “Mike’s Candyshop.” The DTO delivered heroin and cocaine (sometimes laced with fentanyl and a fentanyl analogue) on demand to customers in New York City, and distributed numerous kilograms of heroin and cocaine throughout the course of the conspiracy. Mike’s Candyshop generally operated seven days per week, from approximately 6:00 p.m. to 12:00 a.m., with the exception of major holidays such as Thanksgiving, New Year’s Eve, and Labor Day.
Customers of the DTO placed delivery orders via text message to a centralized phone number (the “Candyshop Number”). The operator of the Candyshop Number was usually TAVAREZ. Using the Candyshop Number, TAVAREZ accepted customer orders and subsequently arranged for a courier working for the DTO to deliver the narcotics to the customer, usually within hours of the customer texting his or her order to the Candyshop Number. Certain of the DTO members, including Christian Baez, Luis Meson, a/k/a “Sito,” Gregoris Martinez, a/k/a “Greg,” Kevin Grullon, a/k/a “Kev,” a/k/a “JB,” and Jeffrey Urena, a/k/a “Jeff,” a/k/a “Jay,” served as couriers for the DTO, and regularly delivered and sold narcotics to the DTO’s customers in hand-to-hand drug transactions coordinated through the Candyshop Number.
The DTO stored heroin, cocaine, a fentanyl analogue, and cash from drug sales in various stash locations maintained by the DTO, including in Brooklyn, New York. In an effort to avoid law enforcement detection, the DTO sold only to customers who had been referred by existing customers, periodically changed the Candyshop Number, used coded language to discuss narcotics, and delivered narcotics directly to customers at locations specified by the customer. As a means of marketing its cocaine, and to ensure that the DTO’s customers knew the cocaine provided by the couriers belonged to the DTO, the DTO sold its cocaine in vials sealed with different colored tops.
TAVAREZ, the leader of the DTO, used threats of violence, including with firearms, against other members of the DTO to maintain order and eliminate competition from within the organization.
On or about December 16, 2018, Colin Kroll, a customer of the DTO, died of a drug overdose in New York, New York. The narcotics that caused Kroll’s death – cocaine, heroin, fentanyl, and a fentanyl analogue – were purchased from Mike’s Candyshop on the evening of December 14, 2018.
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TAVAREZ, 41, previously pled guilty to one count of conspiring to distribute heroin, cocaine, fentanyl, and a fentanyl analogue, the use of which resulted in the death of Colin Kroll on or about December 16, 2018.
Baez, Meson, Martinez, Grullon, and Urena each previously entered a plea of guilty to participating in the Mike’s Candyshop narcotics trafficking conspiracy. Martinez was sentenced on June 29, 2021, to 72 months in prison; Meson was sentenced on September 7, 2021, to 108 months in prison; Urena was sentenced on October 6, 2021, to 40 months in prison; and Grullon was sentenced on October 13, 2021, to 60 months in prison. Baez has not yet been sentenced.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations, the Drug Enforcement Administration, the New York City Police Department, and the Organized Crime Drug Enforcement Task Force. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Mollie Bracewell, Nicholas W. Chiuchiolo, and Aline R. Flodr are in charge of the prosecution.
Kern County Man Sentenced to 12 Years in Prison for Illegally Cultivating Marijuana in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — David Moreno Florez, 28, of Taft, was sentenced today by U.S. District Judge Jennifer L. Thurston to 12 years in prison for illegally cultivating marijuana in a national forest and possessing a firearm in furtherance of that offense, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2019, law enforcement officers located a clandestine marijuana grow site in Sequoia National Forest in Fresno County. On Aug. 2, 2019, officers hiked into the grow site, where they found and arrested Marino Cruz Diaz and Moreno Florez who was carrying a loaded, AR-15 style rifle. The grow contained over 2,400 marijuana plants, chemicals, fertilizers, chicken wire, irrigation lines, and man-made dams and water reservoirs that diverted water from nearby creeks. Moreno Florez pleaded guilty to the charges on April 22, 2022.
On May 27, 2022, Cruz Diaz pleaded guilty and is scheduled to be sentenced on Aug. 19, 2022.
The case is the result of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
Jamestown Man Arrested, Charged with Multiple Child Pornography Charges Including ProductionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Roberto Millan, 34, of Jamestown, NY, was arrested and charged by criminal complaint with production and attempted production of child pornography, and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Maeve E. Huggins, who is handling the case, stated that according to the complaint, in early February 2022, the Jamestown Police Department received information that Millan had sexually abused a 15-year-old female victim. The victim told investigators that Millan communicated with her via text message and Facebook messenger, requesting her to produce sexually explicit images of herself and send the images to him. Initially, the victim refused but she eventually produced the requested images after Millan threatened to harm her family. The victim also stated that during the first time Millan sexually abuse her, he warned that if she “made too much noise,” he would physically harm her family.
During the investigation, law enforcement recovered a series of sexually explicit text messages between Millan and the victim, as well as images of child pornography. On February 9, 2022, following the execution of a search warrant at Millan’s residence in Jamestown, he was taken to the Jamestown Police Department and his cell phone was seized. The cell phone contained additional images of child pornography.
Millan appeared before U.S. Magistrate Judge Michael J. Roemer and is being detained.
The complaint is the culmination of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and Federal Bureau of Investigation, under the direction of Special Agent in Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Irving Woman Sentenced to 12+ Years for Selling Date-Rape DrugRead the Press Release
An Irving woman who sold date-rape drugs over the internet was sentenced Thursday to more than 12 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Hyun Ji Martin, 40, was first charged in June 2021. She pleaded guilty in August 2021 to conspiracy to possess with intent to distribute a controlled substance and was sentenced Thursday by Senior U.S. District Judge Terry R. Means to 151 months in federal prison.
“The U.S. Postal Inspection Service will not stop in pursuing those who wish to flood our streets with dangerous drugs,” said Thomas Noyes, Inspector in Charge of the Postal Inspection Service’s Fort Worth Division. “This sentencing represents our commitment to safeguarding the mail from illicit drug trafficking and bringing those responsible to justice. We thank all those who helped in achieving this outcome, including North Texas Parcel Task Force members, the USPS-OIG, DEA, HSI, CBP and the U.S. Attorney’s Office in the Northern District of Texas.“
According to court documents, Ms. Martin sold gamma-hydroxybutyric acid (GHB), commonly known as “the date rape drug,” over the dark web.
On Nov. 6, 2020, U.S. Postal Inspection Service Parcel Task Force officers observed Ms. Martin deliver 15 parcels to a post office in Irving, Texas. They retained two parcels for investigation. Inside, they found approximately 208 ml of a clear liquid, which they suspected was GHB or an analogue known as gamma-butyrolactone (GBL), concealed in contact lens solution bottles.
On June 3, 2021, officers executed a search warrant at Ms. Martin’s apartment, where they discovered large quantities of GHB, GBL, methamphetamine, USPS shipping supplies, contact lens solution bottles, and a lab used to convert GBL to GHB. In a subsequent interview with law enforcement, Ms. Martin said she routinely ordered GBL from China, converted some of it to GHB, and sold both GHB and GBL on the dark web.
Agents eventually identified more than 1,600 outgoing parcels associated with Ms. Martin, mostly mailed using fictitious shipper names and addresses.
Shortly after her guilty plea, Ms. Martin absconded. She was re-arrested in June 2022 and transported back to North Texas for sentencing.
The U.S. Postal Inspection Service’s North Texas Parcel Task Force and Office of Inspector General conducted the investigation with the assistance of the Drug Enforcement Administration’s South Central Lab and U.S. Customs & Border Patrol. Assistant U.S. Attorney Rob Boudreau prosecuted the case with the help of Assistant U.S. Attorney Joe Lo Galbo.
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. 8 was:
Reginald Steven Williams, 31, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, possession of a firearm in furtherance drug trafficking and prohibited person in possession of a firearm. If convicted of the most serious crime, Williams faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug crimes and a mandatory minimum five years to life, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the crime of possession a firearm in furtherance of drug trafficking. Williams was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 22-84.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 8 was:
Benjamin Richard Skinner, 32, of Great Falls, and Keith Alan Laverdure, 35, of Great Falls, on charges of possession with intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking crime. If convicted of the most serious crime, Skinner and Laverdure face a maximum of 20 years in prison, a $1 million fine and three years of supervised release on the drug crime and a mandatory minimum five years to life in prison, consecutive to any other sentence, on the crime of possession of firearm in furtherance of drug trafficking. Both defendants were released pending further proceedings. The Great Falls Police Department, FBI and Montana Highway Patrol investigated the case. PACER case reference. 22-58.
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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Houston County Man Guilty in Solicitation of Murder PlotRead the Press Release
TYLER, Texas – A Grapeland, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Reynaldo Campos, Jr., 44, pleaded guilty to murder for hire today before U.S. Magistrate Judge K. Nicole Mitchell.
According to the indictment, on Feb. 9, 2022, Campos contacted an individual who he believed was a hitman, but who was in fact an undercover federal agent, and solicited the “hitman” to murder a former associate of Campos, claiming the intended victim had either stolen drugs from him or owed him money. Campos discussed the intended murder with the agent on multiple occasions over the next several weeks. On April 8, 2022, Campos and his girlfriend, Robin Pittman, traveled together from Houston County to Tyler to discuss the murder, to provide the “hit man” with a handgun to be used for the murder, and to provide the “hit man” with information about the intended victim. On April 13, 2022, Campos and Pittman again traveled together from Houston County to Tyler to discuss the murder and to provide the “hit man” with approximately one gallon of Phenylacetone/P2P, which is a chemical used in the manufacture of methamphetamine, and a shotgun as partial payment for the murder of the intended victim.
Campos and Pittman were indicted by a federal grand jury on April 21, 2022. Pittman pleaded guilty on August 9, 2022, to possession of a firearm in furtherance of a drug trafficking crime and is awaiting sentencing.
Campos faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Jim Noble.
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Homestead Felon Charged with Illegally Possessing a FirearmRead the Press Release
PITTSBURGH - A resident of Homestead, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment, returned on August 9, named Darius Latrell Harris, 21, as the sole defendant.
According to the Indictment, Harris is alleged to have possessed a firearm as a convicted felon on or about Nov. 21, 2021. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
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.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hampden Man Pleads Guilty to Possessing Child Sexual Abuse MaterialsRead the Press Release
PORTLAND, Maine: A Hampden man pleaded guilty in U.S. District Court in Bangor today to possessing child sexual abuse materials, U.S. Attorney Darcie N. McElwee announced.
According to court records, between about February 2015 and February 2021, Kevin MacVicar, 31, possessed child pornography on his cell phone and electronic storage devices. MacVicar had obtained the images and videos from the internet, including by participating in online forums dedicated to child sexual abuse material. Some of the images depicted children under 12.
MacVicar faces up to 20 years in prison, a $250,000 fine and up to a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations (HSI) investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: "Child pornography" captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization each time the images are viewed. File a report with the National Center for Missing & Exploited Children at www.cybertipline.com or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, call 911 or contact your local police or sheriff’s department.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Grimes Man Sentenced to 27 years in Federal Prison for Child Pornography OffensesRead the Press Release
DES MOINES, IA – Chase Anthony Duncan, age 38, formerly of Grimes, was sentenced on August 11, 2022, to a total of 324 months in prison for Receiving and Possessing Child Pornography. Following completion of his prison term, Duncan will be on supervised release for ten years. There is no parole in the federal system. Duncan pleaded guilty in March 2022 to these offenses.
In July 2021, law enforcement received multiple cybertips alerting them that a Google account associated with Duncan contained suspected child pornography. Des Moines Police detectives obtained a search warrant for the Google account and discovered videos and images of child pornography in Duncan’s Google Photos account. In September 2021, Detectives obtained and executed a search warrant at Duncan’s Grimes residence. From Duncan’s bedroom police seized dozens of printed 8-by-10-inch images of child pornography and several electronic devices. A forensic examination of the devices revealed hundreds of images and videos depicting child pornography that Duncan had downloaded from the internet. In addition, police discovered several videos of Duncan sitting in his car in Des Moines area parking lots while Duncan recorded minor girls walking nearby who were unaware of his presence. Duncan was masturbating and narrating his sexual attraction to the girls. Police also located several videos from a “spy camera” that Duncan placed in the bathroom of a Des Moines area hotel guestroom while Duncan and two middle-school aged girls stayed at the hotel in March 2021. Duncan’s spy camera captured these two minors in various states of undress.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The case was investigated by the Des Moines Police Department, Iowa Division of Criminal Investigation (DCI)’s Internet Crimes Against Children Task Force, and the FBI Child Exploitation Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Goose Creek Man Indicted for Firearm and Law Enforcement Impersonation ChargesRead the Press Release
CHARLESTON, SOUTH CAROLINA — A federal grand jury in Charleston returned a two-count indictment against Jeremy Allen Hughes, 39, of Goose Creek, for possessing a weapon after a misdemeanor domestic violence conviction and impersonating a federal law enforcement officer.
The indictment alleges that on November 22, 2021, Jeremy Hughes falsely claimed he was with the U.S. Marshals searching for a fugitive. Hughes carried a pistol and shotgun and wore tactical clothing with a “Police US Marshals” shirt. Investigators ultimately arrested Hughes on December 1, 2021. During the arrest, Hughes had multiple firearms and ammunition on his person. During a search of his residence, investigators located several additional firearms and ammunition. According to information presented to the Court, Hughes is federally prohibited from possessing a firearm and ammunition due to a previous domestic violence conviction.
Hughes faces a maximum penalty of thirteen years in prison if convicted, and he is currently detained.
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.
The case was investigated by the Berkeley County Sheriff’s Office, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Chris Lietzow is prosecuting the case.
United States Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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French Executive Admits Making False Statements to FDA to Fraudulently Obtain Control of Pharmaceutical ProductRead the Press Release
NEWARK, N.J. – A French national and executive of a pharmaceutical company admitted making false statements to gain control of the rights to sell a weight-loss drug in the United States, U.S. Attorney Philip R. Sellinger announced today.
Alain Bouaziz, 69, a French citizen and resident of the United Arab Emirates, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of making false statements to the U.S. Food and Drug Administration.
According to documents filed in this case and statements made in court:
Bouaziz represented himself to be the chief operating officer of Hexim Pharmaceuticals (Hexim), a company headquartered in Secaucus, New Jersey. Hexim was previously known as Alkopharma USA Inc.
Beginning in February 2018, Bouaziz submitted forged documents and made false statements to the FDA to try to fraudulently gain control of Sanorex, a weight-loss pharmaceutical owned by a major international pharmaceutical company. Bouaziz sent letters and documents by email and in hard copy to the FDA falsely stating that Hexim had purchased the New Drug Application for Sanorex and requesting a meeting about marketing Sanorex in the United States. These representations were false because neither Hexim nor Alkopharma owned the rights to distribute Sanorex.
The count of making false statements is punishable by a maximum term of five years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss caused by the offense, whichever is greatest. Sentencing is scheduled for Dec. 14, 2022.
U.S. Attorney Sellinger credited special agents of the Food and Drug Administration, Office of Criminal Investigation, under the direction of Special Agent in Charge Fernando P. McMillan, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud Unit in Newark.
Former San Diego Vice Detective, Three Others Indicted for Owning and Operating Illicit Massage BusinessesRead the Press Release
Assistant U. S. Attorney Jill Streja (619) 546-8401
NEWS RELEASE SUMMARY – August 12, 2022
SAN DIEGO – Former San Diego Police Officer Peter Griffin and three others are charged in an indictment partially unsealed today with crimes related to owning and operating five illicit massage businesses in California and Arizona that sold commercial sex under the guise of offering therapeutic massage services.
Griffin was arrested as he left his San Diego home early yesterday morning and made his first appearance in federal court today. Likewise, defendants Kyung Sook Hernandez and Yu Hong Tan were also taken into custody Thursday and appeared in federal court today. A fourth defendant remains at large.
According to the indictment, Griffin owned and operated the businesses with Kyung Sook Hernandez, Yu Hong Tan, and the fourth defendant at various times between 2013 and August 2022. Their alleged criminal scheme included using cell phones, the internet, and banking channels to register their businesses; advertise commercial sexual services online; employ multiple women to perform commercial sexual services in the businesses; manage the illicit businesses’ finances; and benefit financially from their illegal enterprise.
Griffin, who is also a former attorney, previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the businesses he now stands charged with operating and promoting.
Assistant U.S. Attorney Jill Streja of the Southern District of California, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
The investigation was led by Homeland Security Investigations, Internal Revenue Service Criminal Investigation, and the San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable. The task force is comprised of numerous federal, state, and local agencies as well as the Southwest Border High Intensity Drug Trafficking Area program.
DEFENDANTS Case Number 22-CR-1824-JO
Peter Griffin 78
Kyung Sook Hernandez 58
Yu Hong Tan 56
SUMMARY OF CHARGES
Conspiracy, Interstate and Foreign Travel or Transportation in Aid of Racketeering (ITAR)
18 U.S.C. §§ 371, 1952
Maximum Penalty: Five years in prison, $250,000 fine
Money Laundering
Maximum Penalty: Ten years in prison, $250,000 fine or twice amount of criminally derived property
18 U.S.C. § 1957
Conspiracy to Commit Wire Fraud and Wire Fraud
Maximum Penalty: Thirty years in prison, $1 million fine
18 U.S.C. §§ 1349, 1343
False Statement to a Mortgage Lender
Maximum Penalty: Thirty years in prison, $1 million fine
18 U.S.C. § 1014
AGENCIES
Homeland Security Investigations
Internal Revenue Service Criminal Investigation
San Diego Human Trafficking Task Force
Escondido Police Department
Tempe, Arizona Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former San Diego Police Officer and Three Co-Defendants Indicted for Owning and Operating Illicit Massage Businesses in California and ArizonaRead the Press Release
A federal judge in the Southern District of California partially unsealed an indictment today in which four individuals are charged with conspiracy, interstate and foreign travel or transportation in aid of racketeering (ITAR), money laundering, making a false statement to a mortgage lender, and wire fraud for conduct associated with owning and operating five illicit massage businesses that sell commercial sex under the guise of offering therapeutic massage services in California and Arizona.
According to the indictment, Peter Griffin, 78, Kyung Sook Hernandez, 58, Yu Hong Tan, 56, and a fourth defendant indicted under seal, owned and operated the illicit massage businesses at various times between 2013 and August 2022. Their criminal scheme allegedly included using cell phones, the internet, and banking channels to register their businesses, advertise commercial sexual services online, employ multiple women to perform commercial sexual services in the businesses, manage the illicit businesses’ finances, and profit from the illegal enterprises.
Griffin, who is a retired police officer and former attorney, previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he now stands charged with operating and promoting.
Griffin was arrested near his San Diego residence early yesterday morning and made his initial appearance in federal court today. Hernandez and Tan were also taken into custody Thursday and appeared in federal court today. A fourth defendant remains at large.
If convicted, the defendants face up to five years in prison for conspiracy to commit ITAR and committing ITAR; up to 30 years in prison for wire fraud, conspiracy to commit wire fraud, and for making a false statement to a mortgage lender; and up to 10 years in prison for money laundering, as well as monetary penalties, and a period of supervised release and restitution.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Assistant Attorney General Kenneth Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy S. Grossman for the Southern District of California, and Special Agent in Charge Chad A. Plantz of Homeland Security Investigations (HSI) San Diego Field Office made the announcement.
HSI conducted the investigation with the assistance of IRS – Criminal Investigation, the San Diego Human Trafficking Task Force, the Escondido Police Department, the San Diego Police Department, the San Diego District Attorney’s Office, the San Diego County Sheriff’s Department, and the Tempe (Ariz.) Police Department.
Assistant U.S. Attorney Jill Streja of the Southern District of California, Trial Attorney Caylee Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty.
Former Canadian Moneygram and Western Union Agent Pleads Guilty to Fraud and Money Laundering Conspiracy ChargeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Nneji, age 55, of Canada and Nigeria, pleaded guilty yesterday to conspiracy to commit mail fraud, wire fraud, and money laundering.
According to United States Attorney Gerard M. Karam, Nneji conspired with his codefendant brother, Chima Nneji, codefendant Alex Mgbolu, and other unnamed individuals between July 2002 and May 2010, to commit mail fraud, wire fraud, and money laundering by receiving money transfers from victims of international mass marketing fraud, processing those transfers using fictitious names, pooling the proceeds of those fraud induced money transfers, and then laundering those proceeds to coconspirators in the United States and Nigeria.
William Nneji agreed, as part of his plea agreement, that he was responsible for approximately $606,967 in losses to victims processed through two companies, including one owned by his brother, codefendant Chima Nneji, and one owned by his wife.
Codefendants Chima Nneji and Alex Mgbolu both previously pleaded guilty to the same charge. Chima Nneji and Alex Mgbolu were sentenced to terms of imprisonment in 2016 and 2017, respectively. Both codefendants were extradited to the United States from Canada, whereas William Nneji, from the time of his indictment until November 2021, had been a fugitive.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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