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30 June 2022
Justice Department Announces Enforcement Action Charging Six Individuals with Cryptocurrency Fraud Offenses in Cases Involving over $100 Million in Intended LossesRead the Press Release
The Department of Justice, together with federal law enforcement partners, today announced criminal charges against six defendants in four separate cases for their alleged involvement in cryptocurrency-related fraud, including the largest known Non-Fungible Token (NFT) scheme charged to date, a fraudulent investment fund that purportedly traded on cryptocurrency exchanges, a global Ponzi scheme involving the sale of unregistered crypto securities, and a fraudulent initial coin offering.
“The Department of Justice and our partners are dedicated to using every available tool to protect consumers and investors from fraud and manipulation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments reflect our deep commitment to prosecuting individuals involved in cryptocurrency fraud and market manipulation.”
“Our office is committed to protecting investors from sophisticated scammers seeking to capitalize on the relative novelty of digital currency,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “As with any emerging technology, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.”
“These cases serve as a crucial reminder that some con artists hide behind trendy buzzwords, but at the end of the day they are simply seeking to separate people from their money,” said U.S. Attorney Tracy L. Wilkison for the Central District of California. “We will continue to work with our law enforcement partners to educate and protect potential investors about both traditional and trendy investments.”
“As cryptocurrency marketplaces advance and offer new opportunities for consumers, criminals also seek ways to exploit them,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, alongside our law enforcement partners, will continue to investigate and bring those criminals to justice, and to protect the American people.”
“This investigation and prosecution exemplifies the importance of public-private partnerships,” said Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “As a result of our strong relationships with industry partners, HSI received information leading to this investigation and ultimate indictment. HSI will continue to investigate criminal organizations operating in emerging technologies and are proud to have worked with the Department of Justice Fraud Section to put an end to this criminal activity.”
The following charges are announced today as a part of this national enforcement action.
Crypto NFT Scheme:
United States v. Le Ahn Tuan:
Le Anh Tuan, 26, a Vietnamese national, was charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in the Central District of California in connection with a scheme involving the “Baller Ape” NFT. As alleged in the indictment, Tuan was involved in the Baller Ape Club, an NFT investment project that purportedly sold NFTs in the form of various cartoon figures, often including the figure of an ape. According to the indictment, shortly after the first day Baller Ape Club NFTs were publicly sold, Tuan and his co-conspirators engaged in what is known as a “rug pull,” ending the purported investment project, deleting its website, and stealing the investors’ money. Based on blockchain analytics, shortly after the rug pull, Tuan and his co-conspirators laundered investors’ funds through “chain-hopping,” a form of money laundering in which one type of coin is converted to another type and funds are moved across multiple cryptocurrency blockchains, and used decentralized cryptocurrency swap services to obscure the trail of Baller Ape investors’ stolen funds. In total, Tuan and his co-conspirators obtained approximately $2.6 million from investors. If convicted of all counts, Tuan faces up to 40 years in prison. HSI is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Tian Huang are prosecuting the case.
Crypto Ponzi and Unregistered Securities Scheme:
United States v. Emerson Pires, Flavio Goncalves, and Joshua David Nicholas:
Emerson Pires, 33, and Flavio Goncalves, 33, both of Brazil, and Joshua David Nicholas, 28, of Stuart, Florida, were each charged in the Southern District of Florida with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud in connection with a global cryptocurrency-based Ponzi scheme that generated approximately $100 million from investors. Pires and Goncalves also were charged with conspiracy to commit international money laundering. The indictment alleges that Pires and Goncalves, both founders of EmpiresX, along with Nicholas, the so-called “Head Trader” for EmpiresX, fraudulently promoted EmpiresX, a cryptocurrency investment platform and unregistered securities offering, by making numerous misrepresentations regarding, among other things, a purported proprietary trading bot and fraudulently guaranteeing returns to investors and prospective investors in EmpiresX. As alleged in the indictment, blockchain analytics shows that Pires and Goncalves then laundered investors’ funds through a foreign-based cryptocurrency exchange and operated a Ponzi scheme by paying earlier investors with money obtained from later EmpiresX investors. If convicted of all counts, Pires and Goncalves face up to 45 years in prison and Nicholas faces up to 25 years in prison. FBI and HSI are investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Sara Hallmark and Assistant U.S. Attorney Yisel Valdes of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.
Crypto Initial Coin Offering Scheme:
United States v. Michael Alan Stollery:
Michael Alan Stollery, 54, of Reseda, California, was the CEO and founder of Titanium Blockchain Infrastructure Services (TBIS), a purported cryptocurrency investment platform. Stollery was charged in an information filed in the Central District of California with one count of securities fraud for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering, which raised approximately $21 million from investors in the United States and overseas. As alleged, in order to lure investors, Stollery falsified TBIS white papers (a document for prospective investors that typically explains how the technology underlying the cryptocurrency works and the purpose of the cryptocurrency project), planted fake testimonials on TBIS’s website, and fabricated purported business relationships with the U.S. Federal Reserve Board and dozens of prominent companies, including Apple Inc., Pfizer Inc., and The Walt Disney Company, to create the appearance of legitimacy. If convicted of all counts, Stollery faces up to 20 years in prison. The FBI and the Federal Reserve Board’s Western Region San Francisco Office are investigating the case. Fraud Section Trial Attorneys Kevin Lowell, Tian Huang, and Andrew Tyler are prosecuting the case.
“Those who fraudulently misrepresent their relationship with the Federal Reserve to deceive the public in cryptocurrency or other fraud schemes will be held accountable and brought to justice,” said Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region. “I commend our agents, their federal law enforcement partners, and the Justice Department’s Criminal Division’s Fraud Section for their hard work and persistence.”
Crypto Commodities Scheme:
United States v. David Saffron:
David Saffron, 49, of Las Vegas, Nevada, was the owner of Circle Society, a cryptocurrency investment platform. Saffron used Circle Society to solicit investors to participate in an unregistered commodity pool, which is a fund that combines investors’ contributions to trade on the futures and commodity markets. Saffron was charged in the Central District of California with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit commodities fraud, and one count of obstruction of justice. As alleged in the indictment, Saffron falsely represented to investors that he traded investors’ funds to earn profits using a trading bot that could execute over 17,000 transactions per hour on various cryptocurrency exchanges. Saffron falsely represented that his trading bot would generate between 500% to 600% returns on the amount invested. To entice investors to invest, Saffron allegedly led investor meetings at luxury homes in the Hollywood Hills and elsewhere, and traveled with a team of armed security guards in order to create the false appearance of wealth and success. In total, Saffron fraudulently raised approximately $12 million from investors. If convicted of all counts, Saffron faces up to 115 years in prison. IRS Criminal Investigation (IRS-CI) is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Theodore Kneller, and Assistant U.S. Attorney James Hughes of the U.S. Attorney’s Office for the Central District of California are prosecuting the case.
“Mr. Saffron preyed on investor interest in cryptocurrency by enticing victims with fake technology and false promises of guaranteed returns,” said Special Agent in Charge Ryan L. Korner of the IRS-CI’s Los Angeles Field Office. “In reality, Mr. Saffron was operating an illegal Ponzi scheme to defraud victim investors and used the funds for his own personal benefit. IRS-CI will pursue and root out these schemes to protect investors, preserve our commodity markets, and bring financial fraudsters to justice.”
Crypto Fraud Victims:
All investor victims of the Baller Ape Club, EmpiresX, TBIS, and Circle Society schemes are encouraged to visit the webpage https://www.justice.gov/criminal-vns/crypto-enforcement to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Announces Enforcement Action Charging Six Individuals with Cryptocurrency Fraud Offenses in Cases Involving over $100 Million in Intended LossesRead the Press Release
LOS ANGELES – The Department of Justice, together with federal law enforcement partners, today announced criminal charges against six defendants in four separate cases for their alleged involvement in cryptocurrency-related fraud, including the largest known Non-Fungible Token (NFT) scheme charged to date, a fraudulent investment fund that purportedly traded on cryptocurrency exchanges, a global Ponzi scheme involving the sale of unregistered crypto securities, and a fraudulent initial coin offering.
“These cases serve as a crucial reminder that some con artists hide behind trendy buzzwords, but at the end of the day they are simply seeking to separate people from their money,” said U.S. Attorney Tracy L. Wilkison for the Central District of California. “We will continue to work with our law enforcement partners to educate and protect potential investors about both traditional and trendy investments.”
“The Department of Justice and our partners are dedicated to using every available tool to protect consumers and investors from fraud and manipulation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments reflect our deep commitment to prosecuting individuals involved in cryptocurrency fraud and market manipulation.”
“Our office is committed to protecting investors from sophisticated scammers seeking to capitalize on the relative novelty of digital currency,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “As with any emerging technology, those who invest in cryptocurrency must beware of profit-making opportunities that appear too good to be true.”
“As cryptocurrency marketplaces advance and offer new opportunities for consumers, criminals also seek ways to exploit them,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, alongside our law enforcement partners, will continue to investigate and bring those criminals to justice, and to protect the American people.”
“This investigation and prosecution exemplifies the importance of public-private partnerships,” said Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “As a result of our strong relationships with industry partners, HSI received information leading to this investigation and ultimate indictment. HSI will continue to investigate criminal organizations operating in emerging technologies and are proud to have worked with the Department of Justice Fraud Section to put an end to this criminal activity.”
The following charges are announced today as a part of this national enforcement action.
Crypto NFT Scheme:
United States v. Le Ahn Tuan:
Le Anh Tuan, 26, a Vietnamese national, was charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in the Central District of California in connection with a scheme involving the “Baller Ape” NFT. As alleged in the indictment, Tuan was involved in the Baller Ape Club, an NFT investment project that purportedly sold NFTs in the form of various cartoon figures, often including the figure of an ape. According to the indictment, shortly after the first day Baller Ape Club NFTs were publicly sold, Tuan and his co-conspirators engaged in what is known as a “rug pull,” ending the purported investment project, deleting its website, and stealing the investors’ money. Based on blockchain analytics, shortly after the rug pull, Tuan and his co-conspirators laundered investors’ funds through “chain-hopping,” a form of money laundering in which one type of coin is converted to another type and funds are moved across multiple cryptocurrency blockchains, and used decentralized cryptocurrency swap services to obscure the trail of Baller Ape investors’ stolen funds. In total, Tuan and his co-conspirators obtained approximately $2.6 million from investors. If convicted of all counts, Tuan faces up to 40 years in prison. HSI is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Tian Huang are prosecuting the case.
“HSI is always looking at new trends transnational criminal organizations are exploiting to further their illegal operations” said Acting Special Agent in Charge Selwyn Smith of HSI Baltimore. “In the Baller Ape Club case, cyber criminals used the emerging market of Non-Fungible Tokens (NFT) to prey on investors seeking to diversify their portfolios and stole $2.6 million in cryptocurrency. HSI Baltimore will continue to investigate criminal organizations operating in emerging technologies. HSI Baltimore is proud to have partnered with the Department of Justice Fraud Section.”
Crypto Ponzi and Unregistered Securities Scheme:
United States v. Emerson Pires, Flavio Goncalves, and Joshua David Nicholas:
Emerson Pires, 33, and Flavio Goncalves, 33, both of Brazil, and Joshua David Nicholas, 28, of Stuart, Florida, were each charged in the Southern District of Florida with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud in connection with a global cryptocurrency-based Ponzi scheme that generated approximately $100 million from investors. Pires and Goncalves also were charged with conspiracy to commit international money laundering. The indictment alleges that Pires and Goncalves, both founders of EmpiresX, along with Nicholas, the so-called “Head Trader” for EmpiresX, fraudulently promoted EmpiresX, a cryptocurrency investment platform and unregistered securities offering, by making numerous misrepresentations regarding, among other things, a purported proprietary trading bot and fraudulently guaranteeing returns to investors and prospective investors in EmpiresX. As alleged in the indictment, blockchain analytics shows that Pires and Goncalves then laundered investors’ funds through a foreign-based cryptocurrency exchange and operated a Ponzi scheme by paying earlier investors with money obtained from later EmpiresX investors. If convicted of all counts, Pires and Goncalves face up to 45 years in prison and Nicholas faces up to 25 years in prison. FBI and HSI are investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Sara Hallmark and Assistant U.S. Attorney Yisel Valdes of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case.
Crypto Initial Coin Offering Scheme:
United States v. Michael Alan Stollery:
Michael Alan Stollery, 54, of Reseda, California, was the CEO and founder of Titanium Blockchain Infrastructure Services (TBIS), a purported cryptocurrency investment platform. Stollery was charged in an information filed in the Central District of California with one count of securities fraud for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering, which raised approximately $21 million from investors in the United States and overseas. As alleged, in order to lure investors, Stollery falsified TBIS white papers (a document for prospective investors that typically explains how the technology underlying the cryptocurrency works and the purpose of the cryptocurrency project), planted fake testimonials on TBIS’s website, and fabricated purported business relationships with the U.S. Federal Reserve Board and dozens of prominent companies, including Apple Inc., Pfizer Inc., and The Walt Disney Company, to create the appearance of legitimacy. If convicted of all counts, Stollery faces up to 20 years in prison. The FBI and the Federal Reserve Board’s Western Region San Francisco Office are investigating the case. Fraud Section Trial Attorneys Kevin Lowell, Tian Huang, and Andrew Tyler are prosecuting the case.
“Mr. Stollery convinced victims to invest by deceiving them with calculated lies about the profit potential and by artfully creating an illusion that he was well-connected and a proven success,” said Assistant Director in Charge Kristi Johnson of the FBI’s Los Angeles Field Office. “While cryptocurrency investments can be alluring to those seeking the latest opportunity, caution is warranted as the fraud associated with decentralized money investments is pervasive.”
“Those who fraudulently misrepresent their relationship with the Federal Reserve to deceive the public in cryptocurrency or other fraud schemes will be held accountable and brought to justice,” said Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region. “I commend our agents, their federal law enforcement partners, and the Justice Department’s Criminal Division’s Fraud Section for their hard work and persistence.”
Crypto Commodities Scheme:
United States v. David Saffron:
David Saffron, 49, of Las Vegas, Nevada, was the owner of Circle Society, a cryptocurrency investment platform. Saffron used Circle Society to solicit investors to participate in an unregistered commodity pool, which is a fund that combines investors’ contributions to trade on the futures and commodity markets. Saffron was charged in the Central District of California with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit commodities fraud, and one count of obstruction of justice. As alleged in the indictment, Saffron falsely represented to investors that he traded investors’ funds to earn profits using a trading bot that could execute over 17,000 transactions per hour on various cryptocurrency exchanges. Saffron falsely represented that his trading bot would generate between 500% to 600% returns on the amount invested. To entice investors to invest, Saffron allegedly led investor meetings at luxury homes in the Hollywood Hills and elsewhere, and traveled with a team of armed security guards in order to create the false appearance of wealth and success. In total, Saffron fraudulently raised approximately $12 million from investors. If convicted of all counts, Saffron faces up to 115 years in prison. IRS Criminal Investigation (IRS-CI) is investigating the case. Fraud Section Trial Attorneys Kevin Lowell and Theodore Kneller, and Assistant U.S. Attorney James Hughes of the U.S. Attorney’s Office for the Central District of California are prosecuting the case.
“Mr. Saffron preyed on investor interest in cryptocurrency by enticing victims with fake technology and false promises of guaranteed returns,” said Special Agent in Charge Ryan L. Korner of the IRS-CI’s Los Angeles Field Office. “In reality, Mr. Saffron was operating an illegal Ponzi scheme to defraud victim investors and used the funds for his own personal benefit. IRS-CI will pursue and root out these schemes to protect investors, preserve our commodity markets, and bring financial fraudsters to justice.”
Crypto Fraud Victims:
All investor victims of the Baller Ape Club, EmpiresX, TBIS, and Circle Society schemes are encouraged to visit the webpage https://www.justice.gov/criminal-vns/crypto-enforcement to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Announces Additional Distribution of Approximately $92 Million to Victims in FIFA Corruption CaseRead the Press Release
The Department of Justice announced today a further distribution of approximately $92 million in compensation for losses suffered by FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other jurisdictions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”).
The funds, which were remitted following the Justice Department’s recognition of losses and grant of remission up to a total of $201 million in August 2021, were forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer. To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events and the laundering of those payments.
“From the beginning of the FIFA investigation and prosecutions, one of the department’s primary goals has been to make the victims whole,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department has used every tool at its disposal to make this a reality, while depriving the perpetrators of the proceeds of their crimes. This distribution of approximately $92 million as compensation for losses suffered highlights the importance of asset forfeiture as a critical tool in this endeavor.”
“Today’s distribution of more than $80 million underscores our commitment to returning money obtained through the corruption and fraud prosecuted in this case to the victims of that corruption, where it will be used to benefit the sport,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Over much of the past decade, this investigation and prosecution has concentrated on bringing wrongdoers to justice and recovering ill-gotten gains. Our office, working in collaboration with our law enforcement partners and colleagues in the Department of Justice, will continue our work to compensate victims of crime.”
“There was an extraordinary amount of money flowing between corrupt officials and businesses in this massive scheme,” said Assistant Director in Charge Michael J. Driscoll of the FBI’s New York Field Office. “It is gratifying to know assets seized from the criminals involved will be distributed to groups in need of the money, one specifically focused on educating and safeguarding football for women and girls. The silver lining is that some good will come from the rampant greed uncovered in this investigation.”
“As the distributions to victims have demonstrated, IRS-CI and our law enforcement partners will leave no stones unturned when it comes to conducting investigations involving financial crimes,” said Special Agent in Charge Ryan L. Korner of IRS-Criminal Investigation (IRS-CI) Los Angeles. “Not only have dozens of individuals been brought to justice through the course of the investigation, but the additional $92 million will be returned in full to the victims to help compensate them for the injuries caused by this corruption.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On Dec. 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. During the course of the prosecutions, 27 individual defendants have pleaded guilty to their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout, of Paraguay, and José Maria Marin, of Brazil, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banks, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF, and CONMEBOL have committed to distributing funds received through the remission process, including $32.3 million previously remitted in August 2021, to and through a newly created World Football Remission Fund (the “Fund”) focused on women’s/girl’s football (soccer), education, safeguarding, youth programs, community outreach, and humanitarian needs. The Fund has been established under the FIFA Foundation, an independent foundation that uses soccer, and sport in general, as a tool for social development. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Victor A. Zapana, Brian D. Morris, and Kaitlin T. Farrell are in charge of the prosecution, petition, solicitation, and providing recommendations on the victims’ petitions. Assistant U.S. Attorney Lauren H. Elbert and Trial Attorney Christian Nauvel and former Trial Attorney Michael Grady of the Money Laundering and Asset Recovery Section joined in the investigation and prosecution of the banks.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, which reviewed and approved the victims’ petition for remission; the FBI’s New York Field Office; and the IRS-CI.
Jury Convicts Father and Son of Multiple Conspiracies in Extensive Food Stamp Fraud SchemeRead the Press Release
OAKLAND – A federal jury yesterday convicted son Ali Mugalli Hassan and father Mugalli Ahmed Hassan of multiple counts involving government benefits fraud and conspiracies to commit such fraud, announced United States Attorney Stephanie M. Hinds and United States Department of Agriculture Office of Inspector General (USDA-OIG) Western Region Special Agent in Charge Dustin Cladis. The verdicts follow a one-week jury trial before United States Chief District Judge Phyllis J. Hamilton in Oakland.
Ali Mugalli Hassan, 32, of Alameda, and Mugalli Ahmed Hassan, 50, also of Alameda, were charged on March 14, 2019, in a multiple count superseding indictment along with another family member, co-defendant Ahmed Ahmed Hasan Dharahan, 41, of Oakland. The superseding indictment alleged the defendants defrauded the United States Department of Agriculture (USDA) by unlawfully trafficking federal food stamp benefits from 2014 through 2017.
Yesterday afternoon, a jury convicted son Ali and his father Mugalli of all four charges against them. Specifically, son and father were each convicted of conspiracy to defraud the United States; government benefits fraud greater than $5,000; conspiracy to commit wire fraud; and wire fraud.
According to evidence presented at trial, Ali Mugalli Hassan owned and operated a convenience store on International Boulevard in Oakland. Members of Ali’s family served as cashiers at the store, including his father Mugalli Ahmed Hassan and his uncle Ahmed Ahmed Hasan Dharahan. The convenience store was an authorized vendor for the USDA’s Supplemental Nutritional Assistance Program (SNAP), formerly known as the Food Stamp Program. SNAP helps economically disadvantaged persons pay for essential food items for themselves and their families. Program recipients receive their benefits via an electronic benefits transaction (EBT) card, which operates much like a debit card but limits purchases to program-eligible items. The store conducted a high-volume of SNAP transactions, including redeeming over $2.3 million in SNAP benefits between August 2014 and November 2017.
Trial evidence showed that the defendants conducted fraudulent SNAP transactions through the convenience store by charging purchases on the customers’ EBT cards, when in reality the customers received few or no SNAP-eligible products. The defendants kept approximately half the value of the fraudulent transactions and returned the remainder in cash to the customers. As part of the scheme, the defendants also kept customers’ EBT cards and used the federal benefits assigned to those cards at other stores to purchase items to sell at their own convenience store.
Evidence at trial described numerous instances of this fraud over multiple years. For example, evidence showed that the defendants engaged in 10 fraudulent transactions with undercover agents as well as over a hundred additional fraudulent transactions shown on surveillance video. The evidence further showed that the defendants’ store engaged in over $2.3 million in SNAP transactions over an approximately three-year period, in contrast to the average medium grocer in Alameda County that redeemed just $520,000.
The federal jury today convicted Ali Mugalli Hassan and Mugalli Ahmed Hassan of one count of conspiracy to commit benefits fraud and to defraud the United States in violation of 18 U.S.C. § 371, which carries a maximum penalty of five years imprisonment. Ali Mugalli Hassan and Mugalli Ahmed Hassan were each also convicted of one count of benefits fraud greater than $5,000 in violation of 7 U.S.C. § 2024(b), one count of conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, and one count of wire fraud in violation of 18 U.S.C. § 1343. Before trial began Mugalli Ahmed Hassan also pleaded guilty to nine other charged counts of wire fraud in violation of 18 U.S.C. § 1343. Each conviction of a violation of 7 U.S.C. §2024(b) and of 18 U.S.C. §§ 1349 and 1343 carries a maximum sentence of 20 years imprisonment. All of the above counts of conviction carry a maximum fine of $250,000. However, any sentence for these convictions will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States Chief District Judge Phyllis J. Hamilton scheduled a sentencing hearing for both defendants on December 8, 2022. Both defendants remain out of custody pending sentencing.
Co-defendant Ahmed Ahmed Hasan Dharahan’s case is still pending. A trial date has not yet been set in his case.
Assistant U.S. Attorneys Abraham Fine and Molly Priedeman prosecuted the case at trial with the assistance of Patricia Mahoney, Kay Konopaske, and Leeya Kekona. The prosecution is the result of an investigation by the USDA-OIG with the assistance of the Oakland Police Department, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Indianapolis Man Sentenced to 18 Months in Federal Prison for Possessing a Firearm while Subject to a Domestic Violence Protective OrderRead the Press Release
INDIANAPOLIS – Jaylon Dorsey, 25, of Indianapolis was sentenced to 18 months in federal prison after pleading guilty to possessing a firearm while subject to a protective order.
According to court documents, on May 14, 2021, officers from the Indianapolis Metropolitan Police Department (IMPD) stopped a vehicle that Dorsey was driving. Officers recognized Dorsey from previous contacts and knew he had an outstanding arrest warrant from Marion County for violating a protective order and intimidation. During Dorsey’s arrest, officers located a loaded handgun under the driver’s seat of Dorsey’s vehicle. At that time, Dorsey was subject to a domestic violence protective order, which had been issued on behalf of Dorsey’s girlfriend. This court order prohibited Dorsey from possessing firearms under federal law.
Evidence presented at sentencing showed that Dorsey has a history of domestic violence and threatening behavior towards his girlfriend, women, law enforcement, and other members of the public.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Chief Randal Taylor, IMPD, and Daryl S. McCormick, Special Agent in Charge of the ATF’s Columbus Field Division made the announcement.
The Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon following Dorsey’s guilty plea. As part of the sentence, Judge Hanlon ordered that Dorsey be supervised by the U.S. Probation Office for 3 years following his release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kelsey Massa who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of IMPD Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the ATF, IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Hot Springs Man Sentenced to 18 Years in Federal Prison for Drug and Firearms PossessionRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced today to 216 months in prison followed by five years of supervised release on one count of Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Offense. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, on February 26, 2019, the Hot Springs Police Department (HSPD) received a complaint concerning a vehicle attempting to ram another vehicle. A HSPD Officer responded to the area and was able to observe the vehicle and the altercation. A traffic stop was initiated on the vehicle at that time.
The driver of the vehicle was identified as Ralph Andrew Stevens, age 37. Stevens was questioned and ultimately determined to be on parole through the state of Arkansas. Stevens was searched and officers located a clear drug pipe with white residue in his jacket pocket. Stevens was placed in custody at this time.
A search of Stevens vehicle resulted in officers locating two (2) loaded firearms, approximately 163 grams of suspected marijuana, approximately 101.8 grams of methamphetamine and drug paraphernalia. Officers also located and seized $3,916.00 in United States currency.
The suspected methamphetamine was tested by the Drug Enforcement Administration laboratory and confirmed to be not less than 93.56 grams of pure methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Hot Springs Police Department investigated the case.
Assistant U.S. Attorney Bryan Achorn prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This effort is also 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.
Honduran Man Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fausto Lorenzo-Gomez, age 31, was charged yesterday by a federal grand jury with illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, Lorenzo-Gomez, a citizen of Honduras, had been deported in September 2019. He is alleged to have illegally reentered the United States sometime after that date. He was located in the United States in York County, Pennsylvania, during a traffic stop.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant United States Attorney Jaime M. Keating.
Lorenzo-Gomez faces a maximum penalty of 2 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Hartselle Man Pleads Guilty to Attempted Kidnapping and Sexual AssaultRead the Press Release
BIRMINGHAM, Ala. – Yesterday, a Hartselle man pleaded guilty to using the internet to orchestrate an attempted kidnapping and sexual assault, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
Matthias Jacob Edward Mann, 22, of Hartselle, pleaded guilty before U.S. District Judge Abdul K. Kallon to attempted kidnapping and attempted inducement of an individual to travel in interstate commerce to commit an illegal sex act. As part of the plea agreement, the parties stipulated to a 180-month term of imprisonment for Mann’s crimes.
According to the plea agreement, on December 29, 2021, an undercover detective with the Owatonna, Minnesota Police Department was monitoring the public Kik group “Abduction and R@pe 3.” During that time, the Kik User “Dylan H.,” who was determined to be Mann, posted in the group, asking for someone to abduct and sexually assault a woman from Wisconsin. The undercover detective responded and told Dylan H. that he was in Minnesota and would be interested.
On December 30, 2021, the undercover detective recorded a telephone conversation with Mann. On the call, Mann confirmed that his request for the abduction and sexual assault of the victim was not a fantasy. Mann provided the undercover detective with photos and a physical address of the victim, who he stated was a former friend. Mann requested a video to confirm that the abduction and sexual assault was carried out as requested. During their subsequent conversations, Mann agreed to pay the undercover detective gas money to travel to Wisconsin from Minnesota and approximately $2,000.00 once the abduction and sexual assault had been completed. Mann paid the undercover detective $75 on January 5, 2022.
Federal agents arrested Mann on the morning of January 6, 2022, in Hartselle, Alabama.
“This case highlights the dangers of the internet and how an online relationship can quickly take a turn into dangerous territory. Law enforcement is to be commended for their quick response across four states and among several different local, state, and federal agencies. They coordinated their efforts to ensure that the victim was safe, and then worked expeditiously to identify the defendant and arrest him.” said U.S. Attorney Prim F. Escalona.
“The crimes that Mann has pled guilty to are deplorable. I’m proud of the work of my agents and our partners to bring him to the justice he deserves,” said Johnnie Sharp, Jr., Special Agent in Charge, Federal Bureau of Investigation.
The FBI-Birmingham Division investigated the case along with the Sun Prairie, Wisconsin Police Department; Owatonna, Minnesota Police Department; and FBI-Atlanta Division. Hartselle Police Department also provided assistance. Assistant U.S. Attorneys Laura D. Hodge and John M. Hundscheid are prosecuting the case.
Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ERIC WHITE, 31, of Hartford, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on February 17, 2021, Hartford Police arrested White after they found him in possession of a loaded .45 caliber Taurus handgun.
White’s criminal history includes state felony convictions for assault and narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
White has been detained since his arrest. Judge Dooley scheduled sentencing for September 30 at which time White faces a maximum term of imprisonment of 10 years.
This investigation has been conducted by the Federal Bureau of Investigation’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Glenham Man Sentenced for Bank FraudRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Glenham, South Dakota, man convicted of Bank Fraud was sentenced on June 27, 2022, by U.S. District Judge Charles B. Kornmann.
Gabe Outtrim, age 43, was sentenced to 21 months in federal prison, followed by five years of supervised release, restitution in the amount of $144,050.94, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Outtrim was indicted by a federal grand jury on August 3, 2021. He pled guilty on December 7, 2021.
The conviction stemmed from incidents beginning on approximately September 17, 2018, and continuing through February 21, 2019, when Outtrim, who was the branch manager and vice-president of the CorTrust Bank branch in Leola, South Dakota, knowingly executed a scheme to defraud the bank.
In his capacity, Outtrim had lending authority to approve loans up to $200,000 without having to send the loan application and supporting documentation to the bank’s loan committee for review and approval.
Outtrim made a nominee loan in the name of an unknowing bank customer and used the loan proceeds for his own benefit.
This case was investigated by the FBI. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Outtrim was allowed to self-surrender by October 4, 2022.
Gangster Disciple Sentenced to Five Years in Prison for Fentanyl TraffickingRead the Press Release
BOSTON – A member of the Gangster Disciple street gang was sentenced yesterday in federal court in Boston on drug distribution charges involving fentanyl.
Manuel Roderick, 44, of Auburn, Maine, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and four years of supervised release. Earlier in the hearing, Roderick pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
“In communities across our Commonwealth and the country, drug traffickers use local dealers to peddle their poison on the vulnerable,” said United States Attorney Rachael S. Rollins. “Addressing and ending the opioid crisis is a huge priority of my administration. And we are targeting fentanyl dealers. That particular opioid is up to 50 times stronger than heroin and up to 100 times stronger than morphine. Today’s sentence should make clear that we will seek significant sentences and subsequent oversight for these types of crimes.”
“Manuel Roderick will now spend the next five years behind bars after we caught him red-handed trafficking fentanyl, having traveled down from Maine to buy it at a reduced price. He and his fellow gang members have flooded our neighborhoods with deadly drugs, furthering the scourge of opioids in our communities,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Our North Shore Gang Task Force will continue to work with our law enforcement partners to get drug dealers like him, and the gangs they belong to, off our streets for good.”
This case stemmed from a larger investigation into members and drug suppliers of the Gangster Disciples street gang operating in the greater Lawrence area, allegedly led by Justin Suriel. In March 2021, Roderick was observed visiting Suriel’s residence for what appeared to be a drug transaction. During a subsequent traffic stop, law enforcement seized 107 grams of powdered fentanyl in a large plastic bag from Roderick’s vehicle. According to court documents, during the traffic stop, Roderick admitted to law enforcement that he bought narcotics from Suriel and was a Gangster Disciple gang member.
Suriel was arrested in November 2021. He has pleaded not guilty and is pending trial.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This case 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 details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fresno Man Charged with Passport Fraud for Using a Deceased Child’s Identity to Renew a PassportRead the Press Release
FRESNO, Calif. — On May 26, 2022, a federal grand jury indicted Kenneth Laitman, aka John Rodman, 78, of Fresno, for passport fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 1984, Laitman left his job as a stockbroker in New York and moved to California where he assumed the identity of John Rodman and worked at an endoscopy practice. The actual John Rodman died in 1950 at the age of four.
Laitman subsequently obtained various forms of identification, worked jobs, opened bank accounts, received government benefits, and took other actions while falsely using Rodman’s identity. This included a U.S. Passport that he obtained in 2004 and used to travel overseas on multiple occasions. He is charged with attempting to renew that passport in 2014.
This case is the product of an investigation by the Diplomatic Security Service, the Social Security Administration Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Laitman faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Below are pictures of Laitman through the years. Anyone with knowledge of his activities is encouraged to contact the FBI at 916-746-7000 or at tips.fbi.gov.
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Four Windsor Men Charged with Trafficking Counterfeit Oxycodone Pills Containing FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that the following four men were arrested yesterday on federal narcotics distribution charges primarily related to the large-scale trafficking of counterfeit pills containing fentanyl:
MICHAEL LEE, 24, of Windsor
ALEXANDER LEE, 21, of Windsor
DARYL BEAUFORT, 24, of Windsor
JUSTIN LITTLE, 24, of WindsorAs alleged in court documents and statements made in court, the DEA New Haven Tactical Diversion Squad has been investigating a drug trafficking organization led by Michael Lee and his brother Alexander Lee. The investigation, which has included court-authorized wiretaps, controlled purchases of narcotics and the seizure of drugs that had been shipped through the U.S. Mail, revealed that Michael Lee, Alexander Lee and others received thousands of counterfeit oxycodone pills containing fentanyl, and other controlled substances, from a source of supply on the west coast of the U.S., and then distributed the drugs to various street-level distributors in Connecticut, including Beaufort and Little, and numerous drug customers.
During the investigation and in association with yesterday’s arrests, investigators seized more than 15,000 counterfeit oxycodone tablets containing fentanyl, more than 1,800 alprazolam tablets (commonly referred to as “Xanax”), approximately 25 pounds of marijuana, seven firearms, and thousands of dollars in cash.
The defendants were arrested on criminal complaints charging each with conspiracy to possess with intent to distribute controlled substances, and possession with intent to distribute and distribution of controlled substances.
Each defendant appeared yesterday before U.S. District Judge Robert A. Richardson in Hartford. Michael and Alexander Lee are currently detained, and Beaufort and Little were released on bonds.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA New Haven Tactical Diversion Squad, with the assistance of the U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Connecticut State Police; East Central Narcotics Task Force; and the Windsor and Enfield Police Departments. The DEA Tactical Diversion Squad is composed of personnel from the DEA and the Watertown, East Windsor, Manchester, Glastonbury, New Britain, West Haven, Hamden and Newington Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Stephanie T. Levick through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Fort Wayne Man Sentenced to 195 Months in PrisonRead the Press Release
FORT WAYNE – Jamic C. Johnson, 47 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady on his plea of guilty to possessing with intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Johnson was sentenced to 195 months in prison followed by 5 years of supervised release.
According to documents in the case, on October 28, 2020, a state search warrant was served on Johnson’s residence. During the search, officers seized a distribution amount of methamphetamine, cocaine, a loaded handgun, a drug ledger, a loaded shotgun, additional ammunition, magazines, pills, and a scale. Johnson’s criminal history revealed he was convicted of multiple felony offenses. One of the felonies was for carrying a handgun without a license and the other two were for dealing cocaine or a narcotic drug. Any of these felony convictions federally prohibit him from possessing a firearm or ammunition.
This case was investigated by the Drug Enforcement Administration with the assistance of the Allen County Drug Task Force and Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Head Coach of Women's Soccer at the University of Southern California Sentenced in College Admissions CaseRead the Press Release
BOSTON – The former head coach of women’s soccer at the University of Southern California (USC) was sentenced yesterday for his role in the college admissions bribery scheme.
Ali Khosroshahin, 52, of Fountain Valley, Calif., was sentenced by U.S. District Court Judge Indira Talwani to time served and one year of supervised release with the first six months to be served in home confinement. Khosroshahin was also ordered to pay forfeiture in the amount of $208,990. In June 2019, Khosroshahin pleaded guilty to conspiracy to commit racketeering. Khosroshahin cooperated with the government’s investigation.
While serving as the head women’s soccer coach at USC, Khosroshahin conspired with William “Rick” Singer and others to facilitate the admission of student applicants to USC as purported recruits for the women’s soccer team in exchange for bribes. Specifically, Khosroshahin and co-conspirator Laura Janke, an assistant coach for the women’s soccer team, together purported to recruit one or two of Singer’s students to the USC women’s soccer team each year. In reality, Khosroshahin knew the students were not legitimate Division I college-level soccer recruits, and he was not actually recruiting them to be members of his team. To deceive USC’s subcommittee on athletic admissions into believing the students were legitimate recruits, Khosroshahin and Janke submitted falsified athletic “profiles,” which they either received from Singer or created themselves and which made the students appear to be elite high school athletes. In exchange, Singer paid Khosroshahin and Janke bribes, funded by the money from his clients, in the form of checks from his fake charity, the Key Worldwide Foundation, made out to the USC soccer program or to their private soccer club. In addition, Khosroshahin continued his involvement in the scheme after his USC tenure by encouraging other coaches to work with Singer and receiving payments when he facilitated “side door” deals through those coaches.
On June 28, 2022, Janke was sentenced by Judge Talwani to time served and one year of supervised release, with 50 hours of community service.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Female MS-13 Gang Associate Pleads Guilty to 2019 Murder of 15-Year-Old in Central IslipRead the Press Release
Earlier today, in federal court in Central Islip, Lidia DelCarmen-Rodriguez, an associate of the Leeward Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to aiding and abetting the use of a firearm, which caused the death of 15-year-old Jasson Medrano-Molina, on August 7, 2019 in Central Islip. The proceeding was held before United States Circuit Judge Joseph F. Bianco.
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 Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“The defendant today admitted that she helped carry out a despicable crime by luring a 15-year-old boy to his violent death as part of the MS-13 gang’s agenda to attack and kill their rivals,” stated United States Attorney Peace. “It is my sincere hope that the family of this young victim can find some solace in knowing that the individuals responsible for this crime have been brought to justice. This Office, in partnership with the Long Island Gang Task Force, will continue to work tirelessly to prevent these senseless killings and eliminate gang violence that endangers our communities.”
“The senseless violence that MS-13 carries out is incomprehensible and we will continue to dedicate resources to and work with our law enforcement partners to hold these gang members accountable,” stated SCPD Commissioner Harrison. “This attack had the potential to take even more lives and we must send a message to this criminal organization, that no matter your age, if you act like an adult, you will pay the price as one.”
Mr. Peace thanked the Suffolk County District Attorney’s Office for its assistance with the prosecution.
According to court filings and statements by the defendant at the guilty plea proceeding, in July and August 2019, the defendant and other MS-13 members and associates were seeking to identify, attack and kill individuals whom they believed were rival gang members in an effort to elevate their own positions in the gang. The defendant and her co-conspirators targeted several individuals, including Medrano-Molina, who were suspected of being members of the rival 18th Street gang. In the early morning hours of August 7, 2019, she lured Medrano-Molina and two other individuals to a secluded wooded area in Central Islip, where two of her co-conspirators, who were armed with a .40 caliber handgun and a baseball bat, were waiting. Upon realizing the ambush, Medrano-Molina and the other two individuals ran away. Medrano-Molina was pursued, and fatally shot multiple times at close range. The other two individuals were able to escape unharmed.
DelCarmen-Rodriguez is now 19 years old, and was 16 years old at the time of the Medrano-Molina murder. She was initially charged by complaint on August 21, 2019, and, thereafter, a juvenile information on September 20, 2019, both of which were both filed under seal in the Eastern District of New York. A juvenile transfer hearing was held on December 14, 2021, and she was ultimately transferred to adult status by order of the Court, dated January 26, 2022. In connection with her plea today, the defendant waived indictment and a Superseding Information, charging her as an adult, was filed publicly.
In October 2021, co-conspirator Jose Omar Sorto Portillo, also a member of the Leeward Locos Salvatruchas clique of MS-13, pleaded guilty to murder in aid of racketeering for his participation in the murder of Medrano-Molina. He is currently awaiting sentencing.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members and associates of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010, this Office has obtained indictments charging MS-13 members and associates with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders, members, and associates in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, New York State Police, Hempstead Police Department, Rockville Centre Police Department, and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci, Megan E. Farrell, and Special Assistant United States Attorney Kathleen Kearon are in charge of the prosecution.
The Defendant:
LIDIA DELCARMEN-RODRIGUEZ
Age: 19
Central Islip, New YorkE.D.N.Y. Docket No. 19-CR-431 (S-1)(JFB)
Federal Jury Convicts Vian Resident of Aggravated Sexual Abuse of A Child in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Joshua Thomas Smith, age 41, of Vian, Oklahoma, was found guilty by a Federal jury of Aggravated Sexual Abuse of a Child in Indian Country.
The jury trial began with testimony on Monday, June 27, 2022, and concluded on Wednesday, June 29, 2022, with the guilty verdict.
During the trial, the United States presented evidence that Joshua Thomas Smith sexually abused a child under the age of twelve from December of 2017 through March of 2018.
The guilty verdict was the result of an investigation by the Sequoyah County Sheriff’s Office and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally recognized Indian tribe and the crime occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Bernard M. Jones, II, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting in Oklahoma City, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Smith was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Edith Singer and Hannah Jones represented the United States.
Fayette County Man Sentenced to 10 Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Fayette County man was sentenced today to 10 years in prison, to be followed by five years of supervised release, for possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents and statements made in court, Joshua Lee Parsons, 42, of Powellton, admitted to ordering controlled substances on the dark web and having the controlled substances shipped to him at his residence. On February 24, 2021, the United States Customs and Border Protection at the John F. Kennedy International Mail Center in New York seized approximately 49 grams of heroin from an inbound international parcel addressed to Parsons and his residence. On March 1, 2021, the United States Customs and Border Protection at the John F. Kennedy International Mail Facility seized approximately 34 grams of MDMA, commonly known as Ecstasy, from another inbound international parcel addressed to Parsons and his residence. On March 8, 2021, several law enforcement agencies conducted a controlled delivery of the parcel and executed a search warrant at Parsons’ residence. During the search, officers recovered a loaded Hi-Point .380-caliber handgun and multiple controlled substances including approximately 66 grams of methamphetamine packaged in 103 separate bags, approximately 27 grams of heroin, and quantities of MDMA, ketamine, LSD, psilocin, and DMT.
Parsons admitted that he intended to sell the methamphetamine. Parsons told officers that he had another parcel that contained methamphetamine that he ordered and had shipped to him at his residence. On March 15, 2021, law enforcement intercepted that parcel, which contained approximately 223 grams of methamphetamine.
United States Attorney Will Thompson made the announcement and commended the work of the United States Department of Homeland Security, the United States Customs and Border Protection, the United States Postal Inspection Service, the West Virginia State Police, the Central West Virginia Drug Task Force, the Metro Drug Enforcement Network Team (MDENT), and the West Virginia National Guard Reconnaissance and Aerial Interdiction Detachment.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-93.
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Essex County Man Sentenced to Five Years in Prison for Drug DistributionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for conspiring to distribute cocaine base and distributing fentanyl and cocaine base, U.S. Attorney Philip R. Sellinger announced.
Marvin Lagrier, aka “Black Jesus,” 40, of Newark, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to a superseding information charging him with one count of possession with intent to distribute 40 grams or more of fentanyl. Lagrier was a Newark Housing Authority employee at the time of his arrest. Judge Arleo imposed the sentence today by videoconference.
A codefendant, Tyrell Wilson, aka “Hell Rell,” 37, of Rahway, New Jersey, previously pleaded guilty to an information charging him with one count of conspiracy to distribute 280 grams or more of cocaine base and one count of possession with intent to distribute 280 grams or more of cocaine base. Judge Arleo sentenced Wilson on Feb. 14, 2022, to 10 years in prison.
According to documents filed in this case and statements made in court:
On Sept. 19, 2019, law enforcement officers approached an apartment in Essex County, New Jersey, to execute a court-authorized search warrant. Wilson and Lagrier exited the apartment and attempted to flee the area but were apprehended and placed under arrest. Upon searching the apartment, as well as Wilson’s vehicle and a backpack that Wilson discarded while fleeing, law enforcement officers recovered a large amount of cocaine base, heroin, and fentanyl as well as many items of drug paraphernalia for packaging narcotics. Law enforcement officers also recovered a firearm and several rounds of ammunition as well as several cellular phones. They also recovered several brown Newark Housing Authority uniforms bearing the name tag, “Marvin,” which matched the uniform that Lagrier wore at the time of his arrest.
In addition to the prison term, Judge Arleo sentenced Lagrier to four years of supervised release.
U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.
This case is part of the Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, the Orange Police Department and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.
Elk City Doctor Pays $95,000 to Settle Civil Penalty Claims Stemming from Allegations of Recordkeeping Violations Relating to the Purchase of FentanylRead the Press Release
OKLAHOMA CITY – Brian Blick, M.D. ("Dr. Blick"), has paid $95,000 to settle civil penalty claims stemming from allegations that he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced United States Attorney Robert J. Troester.
The United States alleges that from March 18, 2020 to March 1, 2022, Dr. Blick ordered controlled substances that were delivered to the Western Oklahoma Pain Specialists clinic (the "Clinic") in Elk City, Oklahoma, but failed to maintain the proper records for some of the purchases. More specifically, Dr. Blick failed to maintain the DEA 222 order forms related to purchases of fentanyl, a Schedule II controlled substance, and failed to annotate on the DEA 222 order forms the quantities and dates fentanyl was delivered to the Clinic. To resolve these allegations, Dr. Blick agreed to pay $95,000 to the United States.
In reaching this settlement, Dr. Blick did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration, Office of Diversion Control. Assistant U.S. Attorneys Ronald R. Gallegos and Amanda R. Johnson prosecuted the case.
Eight Time Convicted Felon Sentenced to 6 Years in Federal Prison for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Deuntay Robertson (30, Sarasota) to 6 years in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Robertson to forfeit a Bersa Thunder 380 CC, .380 caliber pistol and four rounds of ammunition. Robertson had pleaded guilty on March 11, 2022.
According to court documents, on February 9, 2021, law enforcement officers were working an undercover operation in Sarasota. Robertson approached the undercover law enforcement vehicle and offered to sell the undercover officers cocaine base. Robertson instructed the undercover officers to meet him around the corner.
Two uniformed law enforcement officers approached and detained Robertson as he went to meet the undercover officers. The officers conducted a pat-down search of Robertson and recovered a loaded firearm, a digital scale, cocaine base, and eutylone. Robertson later confessed to possessing the firearm. At the time of this offense, Robertson had multiple prior felony convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Eagle Butte Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on June 27, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Tahlon Ducheneaux, age 29, was sentenced to 62 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ducheneaux was indicted by a federal grand jury on July 13, 2021. He pled guilty on March 28, 2022.
The conviction stems from an incident on March 23, 2021, in Eagle Butte during a traffic stop, in which Ducheneaux was the passenger in the vehicle. During a search of the vehicle, law enforcement located a red backpack that belonged to Ducheneaux and inside the bag found a pistol and drug paraphernalia. Ducheneaux is a felon and an unlawful user of a controlled substance, making him a prohibited person.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Ducheneaux was immediately turned over to the custody of the U.S. Marshals Service.
Doc Antle, Owner of Myrtle Beach Safari, and Others Indicted for Federal Wildlife Trafficking and Money Laundering CrimesRead the Press Release
A federal grand jury in Florence, South Carolina returned a 10-count indictment alleging charges related to wildlife trafficking and money laundering against five individuals:
- Bhagavan Mahamayavi Antle, aka Kevin Antle, aka Doc Antle, 62, of Myrtle Beach;
- Andrew Jon Sawyer aka Omar Sawyer, 52, of Myrtle Beach;
- Meredith Bybee, aka Moksha Bybee, 51, of Myrtle Beach;
- Charles Sammut, 61, of Salinas, California; and
- Jason Clay, 42, of Franklin, Texas.
According to the indictment and other court records, Antle is the owner and operator of The Institute for Greatly Endangered and Rare Species (T.I.G.E.R.S.), also known as the Myrtle Beach Safari. The Myrtle Beach Safari is a 50-acre wildlife tropical preserve in Myrtle Beach. Sawyer and Bybee are Antle’s employees and business associates.
Sammut is the owner and operator of Vision Quest Ranch, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests. Clay is the owner and operator of the Franklin Drive Thru Safari, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests.
The indictment alleges that Antle, at various times along with Bybee, Sammut and Clay, illegally trafficked wildlife in violation of federal law, including the Lacey Act and the Endangered Species Act, and made false records regarding that wildlife. The animals involved included lemurs, cheetahs and a chimpanzee.
The indictment and a previously-filed federal complaint in the case also allege that over the last several months, Antle and Sawyer laundered more than $500,000 in cash they believed to be the proceeds of an operation to smuggle illegal immigrants across the Mexican border into the United States. The filings allege that Antle had used bulk cash receipts to purchase animals for which he could not use checks, and that Antle planned to conceal the cash he received by inflating tourist numbers at the Myrtle Beach Safari.
Antle and Sawyer each face a maximum of 20 years in federal prison for the charges related to money laundering, and up to five years in federal prison for the charges related to wildlife trafficking. Bybee, Sammut and Clay each face up to five years in federal prison for the charges related to the wildlife trafficking. Antle and Sawyer were previously granted a bond by a federal magistrate judge as a result of the charges in the federal complaint, and Bybee, Sammut and Clay are pending arraignment.
The case was investigated by the FBI and the U.S. Fish and Wildlife Service. The prosecutors on the case are Assistant U.S. Attorneys Derek A. Shoemake and Amy Bower for the District of South Carolina and Senior Trial Attorney Patrick M. Duggan of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty.
Doc Antle, Owner of Myrtle Beach Safari, and Others Indicted for Federal Wildlife Trafficking and Money Laundering CrimesRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned a 10-count indictment alleging charges related to wildlife trafficking and money laundering against five individuals:
- Bhagavan Mahamayavi Antle, a/k/a Kevin Antle, a/k/a Doc Antle, 62, of Myrtle Beach;
- Andrew Jon Sawyer a/k/a Omar Sawyer, 52, of Myrtle Beach;
- Meredith Bybee, a/k/a Moksha Bybee, 51, of Myrtle Beach;
- Charles Sammut, 61, of Salinas, California; and
- Jason Clay, 42, of Franklin, Texas
According to the indictment and other court records, Antle is the owner and operator of The Institute for Greatly Endangered and Rare Species (T.I.G.E.R.S), also known as the Myrtle Beach Safari. The Myrtle Beach Safari is a 50-acre wildlife tropical preserve in Myrtle Beach. Sawyer and Bybee are Antle’s employees and business associates.
Sammut is the owner and operator of Vision Quest Ranch, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests. Clay is the owner and operator of the Franklin Drive Thru Safari, a for-profit corporation that housed captive exotic species and sold tours and safari experiences to guests.
The indictment alleges that Antle, at various times along with Bybee, Sammut, and Clay, illegally trafficked wildlife in violation of federal law, including the Lacey Act and the Endangered Species Act, and made false records regarding that wildlife. The animals involved included lemurs, cheetahs, and a chimpanzee.
The indictment and a previously-filed federal complaint in the case also allege that over the last several months, Antle and Sawyer laundered more than $500,000 in cash they believed to be the proceeds of an operation to smuggle illegal immigrants across the Mexican border into the United States. The filings allege that Antle had used bulk cash receipts to purchase animals for which he could not use checks, and that Antle planned to conceal the cash he received by inflating tourist numbers at the Myrtle Beach Safari.
Antle and Sawyer each face a maximum of 20 years in federal prison for the charges related to money laundering, and up to five years in federal prison for the charges related to wildlife trafficking. Bybee, Sammut, and Clay each face up to five years in federal prison for the charges related to the wildlife trafficking. Antle and Sawyer were previously granted a bond by a federal magistrate judge as a result of the charges in the federal complaint, and Bybee, Sammut, and Clay are pending arraignment.
The case was investigated by the Federal Bureau of Investigation (FBI) and the U.S. Fish and Wildlife Service. The prosecutors on the case are Assistant U.S. Attorneys Derek A. Shoemake and Amy Bower, with the District of South Carolina, and DOJ Senior Trial Attorney Patrick M. Duggan with DOJ’s Environment and Natural Resources Division’s Environmental Crimes Section
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that the defendants are presumed innocent unless and until proven guilty.
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antle_indictment.pdfDiesel Trucking Companies Conspire to Violate Clean Air ActRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces that Pro Diesel Inc. and Endrizzi Diesel, LLC were sentenced this month for conspiring with a Colorado-based diesel shop to tamper with the computers that monitor emissions control systems on Class 8, commercial heavy-duty diesel trucks.
Both diesel shops previously pled guilty to conspiring with a Colorado diesel shop identified as “E.D.” to disable the vehicles’ on-board diagnostic systems (“OBDs”) software programming, in violation of Title 18, United States Code, Section 371. The diesel shops deleted emission controls on the vehicles and hired E.D. to disable the OBDs so they would no longer detect the malfunctions in the emissions control systems, allowing the vehicles to run seemingly normally. This tampering enabled the vehicle owners to avoid maintenance costs. However, as a result of removing the emission controls, the vehicles release tons of excess nitrogen oxides, carbon monoxide, non-methane hydrocarbons, and particulate matter. The excess pollutant load is particularly substantial because Class 8 vehicles are the heaviest class of vehicle and include the semi-tractor trailers that were tampered with in this case. These toxic pollutants contribute to high levels of ozone and smog and present a danger to public health.
Missouri-based Endrizzi Diesel, LLC admitted to paying E.D. more than $149,000 to disable the OBDs on approximately 60 Class 8 heavy-duty trucks, and Iowa-based Pro Diesel Inc. admitted to paying E.D. more than $76,000 to disable the OBDs on 34 Class 8 heavy-duty trucks. A third diesel shop, Wisconsin-based McDermid Sales & Service, Inc., pled guilty on May 26, 2022 to conspiring with E.D. to violate the Clean Air Act. McDermid admitted to paying E.D. more than $71,000 to disable the OBDs on approximately 32 Class 8 heavy-duty trucks.
Both Endrizzi Diesel and Pro Diesel were sentenced to three-year terms of probation that include stringent monitoring, compliance, and reporting requirements to ensure that neither shop engages in further emissions tampering. Both shops also agreed to pay fines, with a portion of the penalty directed towards community service projects designed to address the environmental harms that resulted from each defendant’s conduct. Endrizzi Diesel was ordered to pay $110,000 to the Walnut Grove, Missouri school district to help purchase cleaner school buses, as well as a fine of $55,000 to the general court fund. Pro Diesel was ordered to pay $77,500 to the Des Moines Area Community College to develop a curriculum to teach diesel mechanic students about emission controls on diesel engines, how to detect tampering, how to restore tampered vehicles, and the legal ramifications of tampering violations. Pro Diesel was also ordered to pay a fine of $38,750 to the general court fund.
“The primary purpose of the Clean Air Act is to protect the quality of the nation’s air resources. When companies or individuals conspire to violate this federal law, they must be held accountable,” said U.S. Attorney Cole Finegan.
“By deleting the emission controls from heavy duty Class 8 vehicles and overriding the on-board diagnostics system that monitors these controls, the defendants are responsible for the release of tons of excess pollutants,” said Lance Ehrig, Special Agent in Charge of the Environmental Protection Agency’s Criminal Enforcement Program, West-Central Region. “This illegal practice and the excess pollutants emitted have serious consequences for air quality and public health. These sentencings clearly demonstrate the EPA’s commitment to vigorously enforce laws designed to protect public health and the environment.”
Pro Diesel, Inc. was sentenced by Judge Daniel Domenico on June 14, 2022. Endrizzi Diesel was sentenced by Judge Regina Rodriguez on June 29, 2022. McDermid Sales & Service, Inc. will be sentenced by Judge Philip A. Brimmer on August 5, 2022.
These cases are being prosecuted by Assistant United States Attorney Rebecca Weber and Special Assistant United States Attorney Linda Kato.
Case numbers: 22-cr-00064-RMR, 22-cr-00062-DDD, 22-cr-00065-PAB.
To report a suspected violation of environmental laws and regulations go to https://echo.epa.gov/report-environmental-violations.
Department of Justice Announces Additional Distribution of $92 Million to Victims in FIFA Corruption CaseRead the Press Release
The Department of Justice announced today a further distribution of approximately $92 million in compensation for losses suffered by FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other jurisdictions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”). The funds, which were remitted following the department’s recognition of losses and grant of remission up to a total of $201 million in August 2021, were forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer. To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events and the laundering of those payments.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, Los Angeles (IRS-CI), made the announcement.
“Today’s distribution of approximately $92 million underscores our commitment to returning money obtained through the corruption and fraud prosecuted in this case to the victims, where it will be used to benefit the sport,” stated United States Attorney Peace. “Over much of the past decade, this investigation and prosecution has concentrated on bringing wrongdoers to justice and recovering ill-gotten gains. Our Office, working in collaboration with our law enforcement partners and colleagues in the Department of Justice, will continue our work to compensate victims of crime.”
“From the beginning of the FIFA investigation and prosecutions, one of the department’s primary goals has been to make the victims whole,” stated Assistant Attorney General Polite. “The department has used every tool at its disposal to make this a reality, while depriving the perpetrators of the proceeds of their crimes. This distribution of approximately $92 million as compensation for losses suffered highlights the importance of asset forfeiture as a critical tool in this endeavor.”
“There was an extraordinary amount of money flowing between corrupt officials and businesses in this massive scheme,” stated FBI Assistant Director-in-Charge Driscoll. “It is gratifying to know assets seized from the criminals involved will be distributed to groups in need of the money, one specifically focused on educating and safeguarding football for women and girls. The silver lining is that some good will come from the rampant greed uncovered in this investigation.”
“As the distributions to victims have demonstrated, IRS-CI and our law enforcement partners will leave no stones unturned when it comes to conducting investigations involving financial crimes,” stated IRS-CI Special Agent-in-Charge Korner. “Not only have dozens of individuals been brought to justice through the course of the investigation, but the additional $92 million will be returned in full to the victims to help compensate them for the injuries caused by this corruption.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On December 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. During the course of the prosecutions, 27 individual defendants have pleaded guilty to their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout and Jose Maria Marin, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banks, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF, and CONMEBOL have committed to distributing funds received through the remission process, including $32.3 million previously remitted in August 2021, to and through a newly created World Football Remission Fund (the “Fund”) focused on women’s/girl’s football, education, safeguarding, youth programs, community outreach and humanitarian needs. The fund has been established under the FIFA Foundation, an independent foundation that uses soccer, and sport in general, as a tool for social development. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Brian D. Morris, Kaitlin T. Farrell, and Victor A. Zapana are in charge of the prosecution and the petition, solicitation, and providing recommendations on the victims’ petitions. Assistant U.S. Attorney Lauren H. Elbert and Trial Attorney Christian Nauvel and former Trial Attorney Michael Grady of the Money Laundering and Asset Recovery Section joined in the investigation and prosecution of the banks.
The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, which reviewed and approved the victims’ petition for remission; the FBI’s New York Field Office; and the Internal Revenue Service-Criminal Investigation.
Delta Airlines to Pay $10.5 Million to Settle False Claims Act Allegations for Falsely Reporting Delivery Times of U.S. Mail Carried InternationallyRead the Press Release
The Justice Department announced today that Delta Airlines Inc. (Delta) has agreed to pay $10.5 million to resolve its alleged liability under the False Claims Act for falsely reporting information about the transfer of U.S. mail to foreign posts or other intended recipients under contracts with the U.S. Postal Service (USPS). Delta is an international air carrier incorporated in Delaware with headquarters in Atlanta, Georgia.
“The United States expects the air carriers with which the USPS contracts to accurately report the services they provide,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The resolution announced today reflects the department’s commitment to pursuing contractors that do not meet their contractual obligations to the United States and misrepresent their failure to perform.”
USPS contracted with Delta to take possession of receptacles of U.S. mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, Delta was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the identified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. The settlement resolves allegations that scans submitted by Delta falsely reported the time and fact that it transferred possession of the mail.
“The USPS contracts with commercial airlines for the safeguarding and timely delivery of U.S. mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases,” said Executive Special Agent in Charge Ken Cleevely of USPS, Office of Inspector General (OIG). “The OIG supports the Postal Service by aggressively investigating allegations of contractual non-compliance within the mail delivery process, including the falsification of delivery information. Our special agents worked hand-in-hand with the Department of Justice to help ensure a reasonable resolution and we applaud the exceptional work done by the investigative and legal teams.”
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, with substantial assistance from the USPS OIG and the USPS Office of General Counsel. Senior Trial Counsel Don Williamson of the Civil Division’s Commercial Litigation Branch, Fraud Section, represented the government in the civil case. This is the sixth civil settlement involving air carrier liability for false delivery scans under the USPS ICAIR Contracts, and collectively the United States has recovered more than $80 million as a result of its investigation of such misconduct.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Convicted Felon Sentenced to 5 Years in Federal Prison for Illegal Possession of FirearmsRead the Press Release
EVANSVILLE – Matthew Allen Green, 39, of Evansville, was sentenced to 5 years in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on November 10, 2020, law enforcement officers stopped a truck driven by Green after observing multiple traffic violations. Green was the sole occupant of the truck. During the investigation, officers discovered a loaded revolver inside the truck and a loaded semi-automatic pistol on Green’s person. Green is prohibited from lawfully possessing firearms due to multiple prior felony convictions, including trafficking in a controlled substance (fentanyl) in Henderson County, Kentucky and robbery in Vanderburgh County, Indiana.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana and Vanderburgh County Sheriff Dave Wedding made the announcement.
The Evansville-Vanderburgh County Drug Task Force and Vanderburgh County Sheriff’s Office investigated the case. The Federal Bureau of Investigation also provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young following the defendant’s guilty plea. As part of the sentence, Judge Young ordered that the defendant be supervised by the U.S. Probation Office for 2 years following his release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristian R. Mukoski who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Convicted Felon Indicted for Possessing A FirearmRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Marquvius Trevon Dixon (26, Clearwater) with possessing a firearm as a convicted felon. If convicted, Dixon faces a minimum mandatory term of 15 years, and up to life, in federal prison. The indictment also notifies Dixon that the United States intends to forfeit the firearm traceable to his offense.
According to the indictment, on July 8, 2021, Dixon possessed a firearm. At the time of the incident, Dixon had multiple prior felony convictions for the sale of cocaine and possession of cocaine. As a previously convicted felon, Dixon is prohibited from possessing a firearm under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Clearwater Police Department. It will be prosecuted by Assistant United States Attorney David P. Sullivan. The forfeiture will be handled by Assistant United States Attorney Suzanne Nebesky.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Construction Company Owner Convicted of Fraud in Securing More Than $240 Million in Contracts Intended for Service-Disabled Veteran-Owned Small BusinessesRead the Press Release
Yesterday, a federal jury in San Antonio, Texas, convicted the owner of several companies in the construction industry for his role in a long-running scheme to defraud the United States.
According to court documents and evidence presented at trial, Michael Angelo Padron, along with co-conspirators Michael Wibracht and Ruben Villarreal, conspired to defraud the United States to obtain valuable government contracts under programs administered by the Small Business Administration (SBA). The evidence showed that Padron conspired to install Villarreal, a service-disabled veteran, as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). Padron, along with his co-conspirator and business partner Wibracht, exercised disqualifying financial and operational control over the construction company. According to court documents, the conspirators concealed that control in order to secure over $240 million in government contracts that were set aside for SDVOSBs in order to benefit their larger, nonqualifying businesses.
“Yesterday’s verdict is a victory for the rule of law,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division and its Procurement Collusion Strike Force welcome this decisive outcome, which protects service-disabled veterans from cheaters and schemers.”
“Using any SBA program fraudulently undermines the spirit and true intent of bolstering the backbone of the nation’s economy — small businesses,” said Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General (SBA-OIG), Central Region. “OIG continues to relentlessly root out and protect the integrity of all SBA’s programs. I want to thank the Antitrust Division and our law enforcement partners for their dedication and pursuit of justice.”
“Yesterday’s verdict is a testament to the tenacity of Army CID’s special agents to detect and investigate those who attempt to defraud our military,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division’s (CID) Major Procurement Fraud Field Office.
“Federal agencies rely on the accuracy and validity of the information contained in GSA’s System for Award Management to make sound contracting decisions,” said Special Agent in Charge Jamie Willemin of the General Services Administration Office of Inspector General (GSA-OIG), Southwest and Rocky Mountain Division. “We will continue to work with our investigative partners to hold accountable those who fraudulently obtain government contracts by providing false information in the system.”
“Fraudulently obtaining multimillion-dollar government contracts from a program designed to benefit service-disabled veterans is reprehensible,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s (VA-OIG) South Central Field Office. “Yesterday’s guilty verdict sends a clear message that the VA-OIG will work diligently to hold those who would do so accountable. The VA-OIG thanks the Department of Justice Antitrust Division and our law enforcement partners for their efforts in this case.”
“This case demonstrates the commitment of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue those who undermine the integrity of government-sponsored small business initiatives,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “Individuals who engage in activity that deprive legitimate program participants of valuable economic opportunities will be thoroughly investigated and held accountable.”
Padron was convicted of conspiracy to defraud the United States and six counts of wire fraud. He is scheduled to be sentenced on Oct. 19, and faces a maximum penalty of five years in prison and a $250,000 fine for the conspiracy count, and a maximum penalty of 20 years in prison and a $250,000 fine for each wire fraud count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Washington Criminal II Section prosecuted the case, which was investigated by SBA-OIG, U.S. Army CID Major Procurement Fraud Unit, VA-OIG, DCIS, and GSA-OIG. The U.S. Attorney’s Office for the Western District of Texas and the Army Audit Agency also assisted with the investigation.
Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at (202) 598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
Connecticut Man Charged with Attempted Human SmugglingRead the Press Release
BOSTON – A Connecticut man was arrested yesterday on charges that he allegedly attempted to smuggle an individual from Brazil into the United States.
Fagner Chaves De Lima, 41, of East Hartford, Conn., was charged with one count of attempted human smuggling. De Lima will appear in federal court in Worcester today before U.S. District Court Magistrate Judge David H. Hennessy.
“It is alleged that Mr. De Lima orchestrated an elaborate and manipulative human smuggling operation. For a steep price, Mr. De Lima allegedly made arrangements for victims to travel from Brazil to the United States, and then extorted the vulnerable victims and their families for more money, even threatening harm,” said United States Attorney Rachael S. Rollins. “As we all know, smuggling operations abuse, exploit and endanger defenseless victims. Combating human smuggling and trafficking networks is a top priority of our office. This alleged crime is an affront to human dignity and a danger to national security.”
“What Fagner Chaves De Lima is accused of doing is disgraceful. In attempting to smuggle human beings into the United States for his own financial profit and then allegedly extorting them for more money, under the fear of harm, he has demonstrated a deliberate disregard for the safety of their lives, and our country’s laws that are in place to ensure the public’s safety,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “It’s important for anyone who is a victim of human smuggling to know that we prioritize the safety of victims when working with our law enforcement partners to bring international human smugglers to justice.”
According to charging documents, De Lima ran a business that illegally smuggled individuals from Brazil into the United States. It is alleged that, in exchange for payments of thousands of dollars, De Lima made travel arrangements for clients to illegally enter the United States from Brazil by plane or bus and arranged lodging accommodations for clients during their travel. In addition, De Lima allegedly extorted clients while their journey to the United States was underway by threatening to harm them and/or their family if they did not pay additional money.
In May and June 2022, an undercover agent initiated communications with De Lima over WhatsApp under the guise that the agent sought to have his sister and niece smuggled into the United States. The undercover agent offered to pay $15,000 for De Lima’s services, and De Lima allegedly agreed to the arrangement. According to the charging documents, De Lima stated during these communications (translated from Portuguese) that he had been engaged in human smuggling “for 20 years,” and that he will smuggle individuals “whether you have a visa, no visa, or if . . .[they] are wanted by the police.” De Lima also allegedly acknowledged in later messages that human smuggling is “dangerous.” On June 16, 2022, De Lima traveled to Worcester to meet with the undercover agent, during which De Lima allegedly accepted two checks for the agreed upon total of $15,000 in exchange for his smuggling services and requested the sister’s passport and Social Security number.
The charge of attempted human smuggling provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins and FBI Boston SAC Bonavolonta made the announcement.
Valuable assistance was provided by U.S. Customs and Border Protection, Yuma Field Office; Homeland Security Investigations in Yuma; U.S. Postal Inspection Service, Boston Division; and the Marlborough, Worcester, Hartford (Conn.) and East Hartford (Conn.) Police Departments; Assistant U.S. Attorney John T. Mulcahy of Rollins’ Civil Rights Enforcement Team is prosecuting the case.
The Civil Rights Enforcement Team (CRET) was created in 2010 to coordinate the efforts of the U.S. Attorney’s Office in enforcing federal criminal civil rights laws. CRET is composed of Assistant U.S. Attorneys and professional staff from the criminal and civil divisions of the office. The primary goals of the CRET is to develop a comprehensive enforcement strategy to address civil rights issues that arise in the District of Massachusetts; to uphold the constitutional rights of all residents, particularly some of the most vulnerable members of society; and to enforce federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status, and national origin.
If you believe that you or someone you know may be a victim of human smuggling/trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA — Shaheem Shaquille Williams, 50, of Columbia, was sentenced to three and a half years in federal prison after pleading guilty to possessing a firearm after being convicted of a prior felony.
Evidence presented to the Court showed that on August 16, 2021, a Richland County deputy stopped Williams after determining the tag on the vehicle did not belong on the car he was driving. After the deputy realized Williams did not possess a driver’s license, Williams ran from the traffic stop. The deputy chased Williams and saw him throw down an object that was later determined to be a firearm. After having to wrestle with Williams and tase him, another officer arrived and the two deputies were able to take Williams into custody. After arresting Williams, the deputy retraced the path of the pursuit and found the firearm laying in the yard of a nearby home.
Senior United States District Judge Cameron McGowan Currie sentenced Williams to 43 months imprisonment, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney William K. Witherspoon prosecuted the case.
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Columbia Man Sentenced to 5 Years in Federal Prison for Fraud Scheme that Amassed 94 Firearms and 7 Bump StocksRead the Press Release
COLUMBIA, SOUTH CAROLINA — Edward Daniel Kimpton, Jr., 26, of Columbia, was sentenced to 5 years in federal prison after pleading guilty to wire fraud and possession of stolen firearms.
Evidence presented to the Court showed that from June 2018 through his arrest in April 2020, Kimpton operated an elaborate fraud scheme that included the use of 16 pseudonyms or names, 58 e-mail addresses, and several financial accounts in false and fraudulent names.
During his scheme, Kimpton ordered high value products from individual sellers and retailers online and then diverted the packages mid-shipment, sometimes by posing as the seller or shipper. After he took possession of the packages, Kimpton filed claims that he never received them, causing money to be reverted and allowing Kimpton to take both the shipments and the money he purportedly paid. Kimpton defrauded at least 27 victims in 17 states.
During court-authorized searches in April 2020, ATF recovered from Kimpton what he amassed during the fraud – 94 firearms, including an illegal short-barreled shotgun and a .50 caliber rifle, as well as 7 illegal bump stocks, more than 23,000 rounds of ammunition, body armor, tactical helmets, tactical clothing, firearm scopes, gas masks, gas mask filters, indoor chemical gas grenades, firearm accessories, medic kits, and luxury consumer goods.
At sentencing, the Court held Kimpton accountable for the possession of machineguns for possessing the 7 bump stocks, which are devices that allow a semiautomatic firearm to shoot a continuous firing cycle by harnessing the recoil energy of the firearm. Bump stocks are illegal under federal law.
Senior United States District Judge Joe Anderson sentenced Kimpton to 5 years in prison, the maximum allowable under the plea agreement, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
At sentencing, the Court also ordered Kimpton to pay victims $44,317.15 in restitution. Restitution will be paid from $73,636.03 seized from a Kimpton bank account as fraud proceeds, and the Court ordered the balance to be forfeited.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the ATF and the United States Secret Service, with assistance from the Richland County Sheriff’s Department and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Elliott B. Daniels prosecuted the case.
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Columbia Man Sentenced to 12 Years in Federal Prison for Drug and Firearms CrimesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Norris L. Bond, 42, of Columbia, was sentenced to 12 years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute cocaine and crack cocaine and possessing a firearm during and in relation to drug trafficking.
Evidence presented to the Court showed that in July, 2019, Richland County Sheriff’s Department made a traffic stop on an Audi driven by Bond. In a subsequent search of the Audi, law enforcement found bags of suspected cocaine and crack cocaine, and a loaded 9mm pistol. Law enforcement arrested Bond and transported him to the detention center. While Bond was enroute, law enforcement noticed him moving around in the backseat of the patrol car. When Bond was removed from the patrol car, law enforcement discovered a torn bag of suspected cocaine where Bond had been sitting. The suspected cocaine and crack cocaine lab tested as approximately 63 grams of cocaine and 30 grams of crack cocaine.
Further investigation revealed Bond had been engaged in a multi-year conspiracy to sell cocaine and crack cocaine in the Columbia area. Bond’s role in that conspiracy was as a source of supply to others. In a three-year period, Bond was accountable for more than 10 kilograms of cocaine and more than 750 grams of crack cocaine.
United States District Judge Mary Geiger Lewis sentenced Bond to 144 months imprisonment, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by Richland County Sheriff’s Department and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Colombian National Extradited from Panama Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William Jung has sentenced Gerardo Gomez-Lubo, a/k/a Francisco Niño, (42, Colombia) to 15 years in federal prison for conspiracy to distribute cocaine knowing and intending it to be imported into the United States. Gerardo Gomez-Lubo had pleaded guilty on January 11, 2022.
According to court documents, beginning in approximately September 2017 and continuing through 2019, Gomez-Lubo was part of a transnational criminal conspiracy that transported cocaine directly from Colombia, through Central America and the Caribbean, directly to the United States, including Texas, California, Hawaii, and Florida.
Th investigation revealed that Gomez-Lubo and others discussed, planned, and executed the transportation of cocaine to include discussing cocaine prices, currency transfers, drug debts, and methods used to avoid apprehension and detection by law enforcement. The cocaine distributed by Gomez-Lubo and others displayed identifying symbols and marks. Those marks were found in kilograms of cocaine recovered by law enforcement in New York, Pennsylvania, and Florida.
Gomez-Lubo’s co-defendant, Piero Antonio Lubo-Barros, was also indicted.
Lubo-Barros was arrested in Costa Rica in January 2021, living under an assumed identity. He was extradited to the United States in November 2021 and is currently pending trial in Tampa.
“This case is a great example of how the DEA works in concert with our law enforcement partners all across the globe to apprehend and bring to justice those involved in the poisoning of American communities by trading in illicit drugs,” said Special Agent in Charge J. Todd Scott, head of DEA’s Louisville Division. “I’m very proud of the work done by all of our special agents who work very hard to keep our communities safe.”
This case was investigated by the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation. It was being prosecuted by Assistant United States Attorney Diego F. Novaes.
The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition. The U.S. Marshals Service also provided critical assistance by extraditing Gerardo Gomez-Lubo from Panama to the Middle District of Florida.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Cleveland man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Willie Johnson, of Cleveland, Ohio, was sentenced today to 92 months of incarceration for his role in a drug trafficking conspiracy, U.S. Attorney William Ihlenfeld announced.
Johnson, age 38, pleaded guilty in July 2021 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin within 1000 feet of a Protected Location.” Johnson admitted to working with someone to distribute heroin near Luau Manor, a housing facility owned by a public housing authority, in April 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on October 15, 2021, Ricky Lee Clark, Jr., 42, of St. Albans, was carrying a loaded Davis Industries, model P380, .380-caliber pistol in his waistband when law enforcement officers encountered him on a residential street in St. Albans.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Clark knew he was prohibited from possessing a firearm because of his felony conviction for possession with intent to deliver a controlled substance in Kanawha County Circuit Court on June 24, 2020.
Clark is scheduled to be sentenced on October 13, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the St. Albans Police Department for conducting the investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for providing valuable assistance.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-59.
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Cartel leader heads to prison for over $2M drug seizuresRead the Press Release
LAREDO, Texas – A leader within Cartel De Jalisco Nueva Generacion has been ordered to federal prison for his role in an elaborate conspiracy of possession with intent to distribute meth, heroin, cocaine and fentanyl, announced U.S. Attorney Jennifer B. Lowery.
Juan Manuel Salazar Alvarez, 29, Michoacan, Mexico, pleaded guilty Nov. 5, 2020.
Today, U.S. District Judge Diana Saldana sentenced Alvarez to 282 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. He was also ordered to pay a $2.7 million.
The investigation began in June 2017, when authorities identified Alvarez as a leader within Cartel De Jalisco Nueva Generacion. Alvarez directed the cartel’s large-scale operations functioning in Tamaulipas, Mexico. It comprised of couriers, stash house operators and transportation coordinators, all responsible for smuggling multi-kilogram quantities of narcotics concealed in fire extinguishers, wooden blocks, car batteries and hydraulic jacks. The drugs were often illegally imported into Laredo and stashed in storage units or tractor trailers to then be distributed into Houston, Dallas, Tennessee, Kentucky and North Carolina.
During the course of the investigation, authorities linked 16 separate drug seizures to Alvarez. The drugs were concealed in similar manner. The seizures spanned from July 18, 2017, through Sept. 10, 2019.
The wholesale value of the drugs seized is estimated to be $2.7 million.
Alvarez’s co-conspirators included truck drivers, stash house operators and transporters who were implicated in the seizure of wooden/steel blocks, hydraulic jacks, batteries or fire extinguishers which contained bundles of an assortment of drugs in multiple kilograms.
Alvarez is the last defendant among 11 who have been previously sentenced for their roles in the conspiracy. Roberto Ivan Rodriguez Ramirez, 27, and Manuel Enrique Ayala Rodriguez, 45, both of Nuevo Laredo, Mexico, were each sentenced to 192 months, while Giovani Mendez Hornelas, a non-U.S. citizen residing in Angier, North Carolina, received 108 months. Daniel Morales Hinojosa, 52, Santos Salazar, 35, Victor Hinojosa, 36, Omar Hiracheta-Cruz, 38, and Armando Animas Hernandez, 33, all from Michoacan and or Nuevo Leon, Mexico, were sentenced earlier in the year. Daniel Hinojosa and Salazar were each ordered to serve 262-month-terms of imprisonment, while Victor Hinojosa, Hiracheta-Cruz and Hernandez received 210, 192 and 120 months, respectively. All are also expected to face removal proceedings.
Alvarez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Gelo Podre (Rotten Ice) with the assistance of Laredo Police Department, U.S. Marshals Service, Border Patrol, Texas Department of Public Safety and Williamson County Sheriff’s Office coordinated through Special Operations Division Operation Python.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Deputy Criminal Chief for the South Texas Organized Crime Drug Enforcement Task Force Mary Lou Castillo prosecuted the case.
Career Criminal Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A career criminal pleaded guilty today in federal court in Boston to trafficking fentanyl while on supervised release for a previous federal conviction.
Robert Roscoe, 31, of Boston and Attleboro, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of distribution of fentanyl. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 21, 2022. Roscoe was indicted in July 2021.
“Despite his past encounters with the criminal legal system, Mr. Roscoe chose to continue engaging in illegal activity by trafficking deadly narcotics into our communities. Adding insult to injury, he was on supervised release at the time he engaged in this new criminal conduct,” said United States Attorney Rachael S. Rollins. “We have lost far too many people to the opioid crisis and that number continues to rise. Drug traffickers, especially ones who are career criminals, will be found and prosecuted by my office.”
“Today’s guilty plea is a direct result of the dedicated work of the ATF and our local, state and federal partners combating criminals that distribute fentanyl in our communities,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Division. “The ATF will continue to investigate individuals and groups who attempt to further the scourge of drugs and violence in the areas we serve.”
On Feb. 3, 2021, Roscoe conspired with co-defendant Ozair Pereira to distribute fentanyl to a cooperating witness at the Westgate Mall in Brockton. At the time of his conduct, Roscoe was on supervised release for a 2019 conviction out of U.S. District Court in Boston for being a felon in possession of a firearm and ammunition. Roscoe had been previously convicted of armed robbery, unlawful possession of a firearm, and assault and battery on a police officer.
The charges of conspiracy to distribute fentanyl and distribution of fentanyl provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins; ATF Boston SAC Ferguson; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Brenda Perez; and New Bedford Police Chief Paul Oliveira made the announcement today. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
California and New Hampshire Men Indicted for Attempting to Fraudulently Obtain $5 Million in CARES Act FundsRead the Press Release
CONCORD – Pierre Rogers, 43, of Irvine, California, and Joshua Leavitt, 40, of Northwood, New Hampshire were indicted by a federal grand jury on Monday and charged with multiple counts of bank fraud, wire fraud, and attempted wire fraud, United States Attorney Jane E. Young and William A. Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division announced today. Rogers was also charged with money laundering.
Leavitt was arrested this morning and was released on conditions pending trial. Rogers’s appearance is being secured.
The indictment filed in court alleges that the defendants owned and operated at least seven companies, including Dark Matter Associates, Puro Trader (d/b/a Yayhn), Puro Group, and Puro Lounge. During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP program. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
In 2020 and 2021, Rogers and Leavitt applied for over two dozen PPP and EIDL loans for their companies. They submitted false documents, including fabricated tax documents, which inflated their size and payroll. Because PPP and EIDL loan size was tied to payroll and the number of employees a company had, the defendants were able to apply for and obtain larger loans. In total, the defendants applied for approximately $2 million in PPP loans and $3 million in EIDL funds.
The defendants also misused at least some of the loan proceeds. For example, Rogers and Leavitt obtained a $175,000 PPP loan for Puro Group using fraudulent documents. As charged in the indictment, Rogers used $107,780 of those funds to purchase a luxury vehicle, a Rolls Royce Ghost.
The charges in the indictment are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Treasury Inspector General for Tax Administration and Secret Service, with assistance from the U.S. Postal Inspection Service. It is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen.
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California Man Pleads Guilty to Role in Capital Region Synthetic Cannabinoids ConspiracyRead the Press Release
ALBANY, NEW YORK – Abdullah M. Hussein, age 43, formerly of Schenectady, New York, and presently residing in California, pled guilty today to conspiring to distribute synthetic cannabinoids (frequently referred to as “spice” or K2”) in Schenectady.
The announcement was made by United States Attorney Carla B. Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division; Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office; and Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
As part of his plea, Hussein admitted that from March through August 2018, he conspired with Rayen Hussein and Abdulqadoos Alomari to sell 2.5 kilograms’ worth of synthetic cannabinoids in brightly colored packets labeled with names including “Scooby Snax,” “Ice Dragon,” “Loopy,” “What’s Up,” and “Geeked Up” out of the former Stockade Market and Deli in downtown Schenectady. The synthetic cannabinoid in the packets was ADB-FUBINACA, which is a Schedule I controlled substance.
Co-conspirators Rayen Hussein and Alomari were arrested on August 17, 2018, when investigators executed federal search warrants on multiple locations in Schenectady, Amsterdam and Glenville, New York, and seized a kilogram’s worth of synthetic cannabinoids packaged for distribution. They have both pled guilty to conspiring to distribute synthetic cannabinoids and are awaiting sentencing.
Abdullah M. Hussein, Rayen Hussein and Alomari each face maximum sentences of 20 years in prison, fines of up to $1 million, and terms of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute(s) the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Co-conspirator Mansoor Ghaleb pled guilty to importing 8 kilograms of synthetic cannabinoids from China with the goal of processing the raw chemicals into “spice” or “K2” for distribution in the Capital Region, including out of the Stockade Market and Deli. On August 21, 2019, Ghaleb was sentenced to 60 months in prison and 3 years of supervised release by Senior United States District Judge Gary L. Sharpe.
This case was investigated by the DEA, HSI, and the USPIS. The Schenectady Police Department, Schenectady County Sheriff’s Office, Amsterdam Police Department and Albany Police Department also assisted in the investigation. The case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Brooke County man admits to failure to register chargeRead the Press Release
WHEELING, WEST VIRGINIA – Christopher J. Schragl, of Follansbee, West Virginia, has admitted to failing to update his sex offender registry, United States Attorney William Ihlenfeld announced.
Schragl, 46, pleaded guilty today to one count of “Failure to Register.” Schragl, a person required as a sex offender, failed to update his registration from May to December to 2021 in the Northern District of West Virginia.
Schragl faces up to up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The United States Marshals Service, West Virginia State Police, Texas Rangers, and the Nevada State Police investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Bronx Gang Member Who Shot 12-Year Old Child in Playground Sentenced to 22 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that NICHOLAS JOSEPH, a/k/a “Gotti,” a/k/a “Finesse,” was sentenced today to 22 years in prison in connection with his participation in the Castle Hill Crew, a violent street gang based in the Castle Hill Houses in the Soundview neighborhood of the Bronx, including for his role in the shooting of a 12-year old child on April 28, 2017, narcotics trafficking, firearms offenses, fraud, and other acts of violence. On September 22, 2021, a jury found JOSEPH guilty of racketeering conspiracy, violent crimes in aid of racketeering, and firearms offenses after a seven-day trial. U.S. District Judge P. Kevin Castel imposed today’s sentence.
U.S. Attorney Damian Williams said: “For years, Nicholas Joseph actively participated in the Castle Hill Crew, a violent gang that infected the Soundview neighborhood of the Bronx with guns, drug dealing, fraud, and violence. These crimes included a shooting in a crowded playground next to an elementary school, which seriously injured a 12-year-old child. Today’s lengthy sentence sends an important message to gang members who commit crimes that they will be apprehended and prosecuted to the fullest extent of the law.”
As alleged in the Indictment and based on the evidence at trial and statements made in open court:
Between in or about 2014 and in or about December 2020, JOSEPH was a member and associate of the Castle Hill Crew, a racketeering enterprise that operated principally in the Castle Hill Houses in the Soundview neighborhood of the Bronx. In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, Castle Hill Crew members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder; distributed and possessed with intent to distribute narcotics; engaged in fraud; and obtained, possessed, and used firearms.
On or about November 19, 2015, JOSEPH and others stabbed a rival gang member in the head and back.
On or about April 28, 2017, JOSEPH shot at rival gang members in the vicinity of the Story Playground in the Bronx, New York, during which a 12-year-old child was injured.
In addition, on or about July 10, 2020, and in or around November 2020 and December 2020, JOSEPH illegally possessed firearms and ammunition.
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In addition to his prison term, JOSEPH, 23, of the Bronx, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the New York City Department of Investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan, Celia V. Cohen, Emily A. Johnson, and Justin V. Rodriguez are in charge of the prosecution.
Boston Woman Sentenced for Drug Trafficking Following Two-Kilogram Cocaine DealRead the Press Release
BOSTON – A Boston woman was sentenced today in connection with selling two kilograms of cocaine.
Ana Guadalupe Acosta Grajeda, 58, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and four years of supervised release. On Sept. 23, 2021, Grajeda pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
According to court documents, Grajeda was arrested and charged in September 2019 along with her son, Carlos Acosta Estrella, after they sold two kilograms of cocaine to a cooperating witness in East Boston. A search of Estrella and Grajeda’s apartment allegedly resulted in the seizure of one kilogram of heroin, numerous cellphones, a high-powered tactical shotgun with a laser sight and a box of ammunition for the shotgun.
Carlos Acosta Estrella has pleaded not guilty and is pending trial.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Police Officer Sentenced on Tax ChargeRead the Press Release
BOSTON – A Boston Police Officer was sentenced today in federal court in Boston for failing to report gambling winnings on his tax returns.
Dana Lamb, 57, of Roslindale, was sentenced by U.S. District Court Magistrate Judge Jennifer C. Boal to six months of probation. On April 27, 2022, Lamb pleaded guilty to one count of filing a false document with the Internal Revenue Service and has cooperated in a related prosecution.
In May 2020, while an Officer for the Boston Police Department, Lamb sold a winning lottery ticket worth $10,000 to a convenience store owner for cash rather than properly claiming it with the Massachusetts Lottery Commission. He then failed to report his gambling winnings on his tax return. Lamb’s failure to report the gambling proceeds resulted in an additional tax due and owing for that year of $1,800.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was provided by the Massachusetts State Lottery Commission. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’s Public Corruption Unit prosecuted the case.
Boston Man Pleads Guilty to Methamphetamine Distribution ChargesRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to distributing methamphetamine.
Daniel Lennon, 32, pleaded guilty to one count of distribution of five grams or more of methamphetamine and two counts of distribution of 50 grams or more of methamphetamine. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 26, 2022. Lennon was indicted on March 3, 2021.
In January and February 2021, investigators conducted three undercover purchases of methamphetamine from Lennon. On Jan. 13, 2021, Lennon delivered approximately 28 grams of 95% pure methamphetamine; on Jan. 19, 2021, Lennon delivered approximately 112 grams of 100% pure methamphetamine; and on Feb. 4, 2021, Lennon delivered approximately 110 grams of 87% pure methamphetamine.
When investigators searched the hotel room in which Lennon was staying, they located a myriad of drugs and drug distribution paraphernalia, including nearly 400 grams of fentanyl and fentanyl analogues, over 500 grams of methamphetamine, over 40 grams of cocaine and approximately $16,740 in cash.
The charge of distribution of five grams or more of methamphetamine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. The charge of distribution of 50 grams or more of methamphetamine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Boston Police Department provided critical assistance in the investigation of this case. Assistant U.S. Attorney Lauren A. Graber of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Baltimore City Man Facing Federal Charges for Allegedly Submitting Fraudulent Covid-19 Cares Act Relief Loan Applications and Stealing the Identity of a Tax PreparerRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Dana Lamar Antonio Hayes, Jr., age 37, of Baltimore, Maryland, on the federal charges of wire fraud, money laundering, and aggravated identity theft. The indictment was returned on June 23, 2022, and unsealed upon his arrest. Hayes will have an initial appearance today at 3:30 p.m. in U.S. District Court in Baltimore before U.S. Magistrate Judge Beth P. Gesner.
The indictment 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 Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the six-count indictment, between March 2020 and October 2021, Hayes submitted several a fraudulent Economic Injury Disaster Relief loan application (EIDL loan) and several Paycheck Protection Plan loan applications (PPP loans) to the Small Business Administration (SBA) and two financial institutions (Bank1 and Bank 2).
Specifically, the indictment alleges in March 2020, Hayes submitted a fraudulent EIDL loan application on behalf of his previously forfeited and recently revived company, D&L Investment Properties Inc. The EIDL loan application allegedly contained false statements regarding the number of employees and payroll expenses of D&L. On the basis of false and fraudulent information, the SBA approved Hayes’s EIDL application and provided Hayes loan funds on behalf of D&L. The indictment also alleges that Hayes claimed to have company expenses of $15,000 and equipment costs of $35,000 when the company had been inactive since 2019. Additionally, within the EIDL application, Hayes allegedly stated that he was not on probation at the time of the filing. As alleged in the indictment, after the SBA initially denied Hayes’ EIDL application, he allegedly regularly contacted the SBA to have his EIDL application approved. Once the application was approved and the funds were deposited into D&L’s bank account, Hayes allegedly transferred all of the loan proceeds from D&L’s bank account into his personal savings account.
Further, in June 2020 and January 2021, Hayes allegedly applied for several PPP loans with Bank 1 and Bank 2 on behalf of D&L. In the PPP loan applications, Hayes allegedly included false statements regarding the number of employees, falsified tax forms, his probation status, and provided false payroll expenses of D&L. On the basis of fraudulent information, Bank 1 and Bank 2 approved and provided PPP loans in the name of D&L. As alleged in the indictment, Hayes quickly transferred the loan proceeds into his personal savings account.
The indictment continues to allege that Hayes used the name and Preparer Tax Identification number of Victim 1 to submit a fraudulent Form 941 to Bank 2 without Victim 1’s knowledge or consent. Victim 1 had been previously hired by Hayes to prepare D&L and Hayes’ personal tax returns, however, Victim 1 claims that they have never prepared Form 941’s for D&L, and federal records indicate no such form was ever filed.
If convicted, Hayes faces a maximum sentence of twenty years in federal prison for wire fraud, ten years in federal prison for money laundering, and a mandatory two years in federal prison followed by any other sentenced imposed for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and the IRS- CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Attorney General Garland to Undergo Medical ProcedureRead the Press Release
One week from today, on Thursday, July 7, Attorney General Merrick B. Garland will undergo a routine surgical procedure.
The Attorney General has been diagnosed with benign enlargement of the prostate or benign prostatic hyperplasia (BPH). BPH is the “the most common prostate problem for men older than age 50,” according to the National Institutes of Health (NIH). It affects approximately half of men between the ages of 51 and 60 and up to 90 percent of men older than 80, according to NIH.
To treat BPH, Attorney General Garland will undergo transurethral resection of the prostate (TURP), a medical procedure to remove enlarged prostate tissue. The surgery typically lasts less than one hour and requires general anesthesia. During the procedure, the Deputy Attorney General will assume the duties of the Attorney General.
As is customary following this type of surgery, Attorney General Garland will remain at the hospital for one to two days for observation and monitoring. He expects to return to the office the week of July 11.
Atlanta Man Pleads Guilty in Tri-State Check Cashing Scheme Targeting PublixRead the Press Release
ALBANY, Ga. – An Atlanta resident who pleaded guilty for his role in a check cashing scheme targeting Publix grocery stores in Georgia, Florida and Alabama was remanded to federal custody today.
Brandon Lamont Bell, 37, pleaded guilty to possession of counterfeit and unauthorized devices on June 23. Bell faces a maximum of ten years in prison to be followed by three years of supervised release and a $250,000 fine. Bell was remanded to federal custody at a petition for action on conditions of pretrial release hearing before U.S. District Judge Louis Sands today. Sentencing is scheduled for Sept. 29.
“Check cashing schemes using stolen bank information is not a minor offense—the harm it causes people and businesses can warrant federal prosecution and will not be ignored by our office,” said U.S. Attorney Peter D. Leary. “Our office is working with local, state and federal law enforcement partners to protect people and businesses from fraudsters.”
“This case is another example that clearly shows criminals are continuously looking for ways to steal from financial institutions. In this case, not only were financial institutions defrauded, but United States citizens were violated by having their bank account information stolen for the purpose of committing fraud,” said Clint Bush, Resident Agent in Charge, United States Secret Service, Albany, Georgia, Resident Office. “The United States Secret Service, along with our state, local and federal law enforcement partners will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of financial fraud in our community and around the nation.”
According to court documents, Georgia State Patrol (GSP) and Tifton Police Department officers were conducting a road check at the I-75 Northbound Exit 61 ramp (the intersection of Old Omega Road and Magnolia Drive in Tifton). During the course of the encounter with Bell and other occupants of the vehicle, and the subsequent United States Secret Service investigation, agents discovered a check cashing scheme involving Bell and other co-defendants targeting Publix Supermarkets in Georgia, Florida and Alabama.
Inside the vehicle, officers found 114 fictious checks printed with nineteen genuine bank account routing numbers, a printer and electric cords, nine counterfeit driver’s licenses and 18 VISA gift cards. Bell admitted that he possessed with the intent to defraud more than fifteen counterfeit and unauthorized access devices.
The case was investigated by the U.S. Secret Service, GSP and the Tifton Police Department.
Assistant U.S. Attorney Sonja Profit is prosecuting the case.
Arkansas Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Larry Arthur King, 39, of Arkansas, pleaded guilty today to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, the Drug Enforcement Administration (DEA) and the West Virginia State Police conducted a traffic stop on U.S. Route 119 in South Charleston on May 19, 2022. King was in the front passenger seat of the stopped vehicle. King later admitted to possessing approximately 690 grams of methamphetamine found in a backpack located in the vehicle, and further admitted that he intended to distribute that methamphetamine to other people. On the same date, officers executed a search warrant of a Charleston hotel room rented by King and found over 400 additional grams of methamphetamine, over 150 grams of fentanyl, a quantity of cocaine, and two pistols.
King is scheduled to be sentenced on October 13, 2022, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release and a fine of up $5 million.
United States Attorney Will Thompson made the announcement and commended the investigative work of the DEA and the West Virginia State Police.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-121.
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