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18 May 2022
COVID Relief Fraudsters Sentenced to PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Anne C. Conway has sentenced Tomas Ziupsnys (39, Kissimmee) to five years in federal prison for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Holly Lynn Urban (36, Kissimmee) was sentenced to two years and six months in federal prison for conspiracy to commit bank fraud. The court also ordered both defendants to forfeit $632,000, which they had obtained from their participation in the bank fraud conspiracy. Ziupsnys had pleaded guilty on February 3, 2022, and Urban had pleaded guilty on January 20, 2022.
According to court documents, Ziupsnys and Urban conspired to defraud multiple banks by submitting false Paycheck Protection Program (PPP) loan applications to the Small Business Administration (SBA) and PPP-approved lenders.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law that was enacted in March 2020. It was designed to provide emergency financial assistance to millions of Americans who suffered the economic effects of the COVID-19 pandemic. One source of relief that the CARES Act provided was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses were required to use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal to be forgiven if the business spent the proceeds on these expenses within a set time period and used at least a certain percentage of the loan toward payroll expenses.
In furtherance of their bank fraud conspiracy, Ziupsnys and Urban submitted six loan applications that contained numerous false representations about the number of employees, average monthly payroll expenses, and annual sales revenue of five companies that they purportedly owned and controlled. Ziupsnys also submitted fabricated tax, payroll, and revenue documents in support of those six fraudulent PPP applications.
Moreover, Ziupsnys submitted false tax forms in support of at least one of the applications, using without authorization the personally identifiable information of Victim-1 and Victim-1’s two minor children. Ziupsnys had obtained the victims’ Social Security numbers when he contacted Victim-1 and expressed interest in employing Victim-1 and the two children in connection with the FedEx routes that he and Urban intended to purchase with PPP funds. After obtaining the victims’ Social Security numbers, Ziupsnys did not contact Victim-1 again concerning employment, and instead used the Social Security numbers on the false tax forms that he submitted in support of one of the loan applications that he and Urban submitted.
Ziupsnys and Urban’s false and fraudulent representations caused the SBA and the PPP lenders to approve and fund three PPP loans, totaling approximately $897,000 ($265,300 of which the bank froze before Urban and Ziupsnys could access the funds). Ziupsnys and Urban unlawfully transferred a significant portion of the PPP funds to an escrow account in connection with their intended purchase of a FedEx route.
In addition to conspiring with Urban, Ziupsnys submitted three additional fraudulent PPP loan applications, requesting more than $497,000. None of those applications were funded.
This case was investigated by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of the Inspector General, and the Small Business Administration Office of the Inspector General. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
CEO of Renewable Energy Company Charged with Fraud, Identity Theft, Money Laundering, and Obstruction OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Abrams, age 39, of Easley, South Carolina, was indicted yesterday by a federal grand jury on wire and mail fraud, identity theft, money laundering, unlawful monetary transactions, obstruction of justice, and false statement offenses.
According to United States Attorney John C. Gurganus, the indictment alleges that Abrams, the owner and Chief Executive Officer of EthosGen LLC, provided forged documents and false information to induce several investors to invest $1,100,000 in his company. Abrams allegedly provided the potential investors with forged tax returns, false financial records, forged contracts with purported customers of EthosGen LLC, and a forged intellectual property license. The forged documents and false information inflated EthosGen LLC’s revenues, business activity, and profitability, thereby making it a more attractive investment. In addition to 19 charges of wire fraud and mail fraud, Abrams also faces five charges of aggravated identity theft, for forging signatures and using other individuals’ personal information on forged documents, without their authorization.
The indictment also alleges that Abrams concealed his scheme by providing forged bank account statements and false information to EthosGen LLC’s Chief Financial Officers and accounting professionals. Abrams is accused of using over $792,000 of the investors’ money to purchase a personal residence in South Carolina. To conceal his financial activities, Abrams alleged laundered $700,000 of the funds through a series of bank accounts under his control, before purchasing the residence. Abrams faces 13 charges of money laundering and unlawful financial transactions for his illicit financial activities.
Abrams also is accused of lying to his investors and former Chief Financial Officer that he had used the funds to purchase company inventory for EthosGen LLC. He allegedly provided investors with falsified company reports and accounting records to corroborate his misrepresentations about the use of the investment funds.
The indictment further alleges that, upon becoming aware of the Internal Revenue Service’s criminal investigation of Abrams, he took several steps to obstruct the investigation. Namely, he is accused of creating false documents and accounting records that purported to classify his embezzlement of investor funds as a shareholder loan, and faces four counts of obstruction of justice. He further was charged with seven counts of providing false statements to federal investigators, by lying about purchasing inventory for EthosGen LLC, claiming that EthosGen LLC owed him $800,000, stating that he provided his investors with truthful information when they evaluated his company during a due diligence process, and claiming ignorance about the origin of multiple forged contracts that he sent to investors.
The indictment seeks forfeiture of the funds Abrams secured from investors during the scheme, and of the residence he purchased with them in South Carolina.
The case was investigated by the Internal Revenue Service’s Criminal Investigations Division. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
The maximum penalty under federal law for the most serious offenses are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charges carry mandatory, consecutive two-year minimum sentences of imprisonment. 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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Brazilian National Pleads Guilty in Nationwide Fraud that Exploited App-Based Food Delivery Customers During PandemicRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – May 18, 2022
SAN DIEGO – Gustavo De Avila Moreira Farinha today became the last of five Brazilian nationals to plead guilty in a nationwide fraud and identity theft scheme.
De Avila pleaded guilty before U.S. Magistrate Judge Jill Burkhardt to wire fraud conspiracy, money laundering and multiple aggravated identity theft charges.
In May 2021, five Brazilian nationals, including De Avila, were charged with engaging in a nationwide conspiracy to establish fraudulent driver accounts with multiple internet and app-based rideshare and food delivery companies, including by using identities stolen from the customers of those companies.
According to his plea agreement, De Avila admitted that between 2018 and May 2021, he and his co-conspirators, all of whom were Brazilian nationals living in the United States illegally, operated a scheme to defraud major app-based rideshare and food delivery companies. In Spring 2020, with the COVID-19 pandemic in full swing, the conspirators shifted away from the rideshare companies, which saw a dramatic decrease in traffic, to food, grocery and other delivery companies, which saw a corresponding and significant increase in demand. De Avila and his co-conspirators exploited the surge in demand by creating new driver accounts with stolen identities, collecting referral bonuses from the fraudulent accounts, and by using, renting, and selling the accounts to others on these platforms.
De Avila and his co-conspirators also admitted that once they received payment from the rideshare and delivery companies, they laundered the money both to promote the conspiracy and to conceal the fact that the source of the funds were an elaborate fraudulent scheme. While the fraudulent scheme targeted popular app-based rideshare and food delivery services, De Avila and his co-conspirators also stole and used the identities of close to 100 victims to create fraudulent driver accounts on the various platforms over the three-year conspiracy.
“As of today, all five defendants in this case have admitted their elaborate scheme to steal the identities of hundreds of unsuspecting victims, many of whom turned to food delivery services to survive the pandemic,” said U.S. Attorney Randy Grossman. “Identity theft can be a nightmare of frustration and angst for victims who struggle to reclaim their good names. These defendants are the ones struggling now.” Grossman thanked the prosecution team and agents from Homeland Security Investigations for their excellent work to achieve justice in this case.
“Today’s guilty plea is an example that this type of criminal conduct will not be tolerated,” said HSI San Diego acting Special Agent in Charge Juan Munoz. “Homeland Security Investigations agents will continue to investigate allegations of wire fraud, money laundering, and identity fraud to ensure those who participate in these illegal activities will be brought to justice. We also remain committed to working with the prosecutors to bring charges against anyone who deliberately harms and deceives others for their own personal profit.”
Sentencing for De Avila is scheduled for August 29, 2022, at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
DEFENDANTS Case Number 21CR1538-GPC
Gustavo De Avila Moreira Farinha Age: 30 Brazil
Tatiane Pereira Arantes Age: 38 Brazil
Natalia Magalhaes Rocha Age: 30 Brazil
Leonardo Trulsen De Oliveira Age: 30 Brazil
Thassya Da Silva Alves Age: 30 Brazil
SUMMARY OF CHARGES
Count 1 - Conspiracy to Commit Wire Fraud – Title 18, U.S.C., 1349
Maximum Penalty: Twenty years in prison, $250,000 fineCount 2 – Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., 1956(a)(1)(A)(i), (b)(i), and 1956(h)
Maximum Penalty: Twenty years in prison, $500,000 fine or twice the value of the monetary instruments
Counts 3-17- Aggravated Identity Theft – Title 18, U.S.C., 1028A
Maximum Penalty: Mandatory-minimum two years in prison, to run consecutively to the specified felony.
AGENCY
Homeland Security Investigations
Bluefield Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Bluefield man pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, Torrey Hairston, 34, admitted that law enforcement officers found a pair of 9mm semi-automatic pistols, a Beretta Nano and a Glock 26, after responding to a report of a domestic altercation at his residence on March 19, 2021. One of the firearms was in Hairston’s pocket and the other was on the floor of Hairston’s apartment.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Hairston knew he was prohibited from possessing a firearm because of his March 29, 2017, conviction for possession with intent to distribute a controlled substance in Mercer County Circuit Court.
Hairston is scheduled to be sentenced on September 12, 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 Bluefield Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) for conducting the investigation.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Andrew D. Isabell 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. 1:21-cr-233.
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Austin Man Sentenced for Hotel Investment Fraud SchemeRead the Press Release
AUSTIN – Today an Austin man was sentenced to 70 months in prison and ordered to pay $5,052,366.92 in restitution for his role in a fraud scheme.
According to court documents, from 2012 until June 2018, Jason Michael Schubert, 47, devised a scheme to bilk hotel investors out of millions of dollars. Schubert identified potential investors by conducting seminars on how to make money from investing in hotel properties, known as “Rich in Five” seminars, charging the participants substantial fees to attend. Schubert then solicited money from the participants for investing in preexisting hotel properties that he would manage and operate while claiming that investors would profit with little effort on their part.
However, many of the hotels were older and in substantial disrepair. Although Schubert had no hotel management experience, he represented that investor funds would be used to renovate the hotels. Instead, he misappropriated the money by paying himself significant “management fees.” Schubert’s fraudulent activities depleted investor funds, causing the hotel properties to go into foreclosure with a loss of over $5 million to investors.
On December 2, 2020, Schubert pleaded guilty to one count of wire fraud and one count of engaging in a monetary transaction involving criminally derived property.
“This defendant engaged in a complex fraud involving commercial real estate, moving funds among numerous bank accounts, and making many false promises to well-intentioned investors,” said United States Attorney Ashley C. Hoff. “Like so many other fraud schemes, this scheme was designed to line the defendant’s own pockets with other people’s hard-earned money. Now that his scheme has been dismantled, we are confident that the prosecution and sentencing of this defendant will bring a measure of justice to his victims.”
“This is a clear case of a criminal taking advantage of investors by misappropriating their life savings for his own financial gain,” said FBI Special Agent in Charge Oliver E. Rich. “The FBI will continue its vigorous pursuit of those who commit these types of fraudulent schemes to hold them accountable for their actions.”
This case was investigated by the FBI, with assistance from Internal Revenue Service – Criminal Investigations, the Texas State Securities Board, and the Texas Department of Insurance.
Assistant U.S. Attorney Matthew Devlin prosecuted the case.
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Attorney General Merrick B. Garland Meets with Supreme Court Officials regarding Judicial SecurityRead the Press Release
Attorney General Merrick B. Garland this afternoon convened a meeting with Justice Department and Supreme Court officials to discuss the security needs of Justices and the Court since the unauthorized release of a draft Court opinion. At the Attorney General’s direction, the U.S. Marshals Service accelerated the provision of around-the-clock security at the homes of all Justices, among other actions, last week.
Attendees also discussed ongoing efforts to enhance coordination, intelligence sharing, and technical support as it relates to judicial security. The Attorney General reiterated the Department’s commitment to take all appropriate actions to further enhance the security of Justices and the Court.
“The rise of violence and unlawful threats of violence directed at those who serve the public is unacceptable and dangerous to our democracy,” said Attorney General Garland. “I want to be clear: while people vote, argue, and debate in a democracy, we must not – we cannot – allow violence or unlawful threats of violence to permeate our national life. The Justice Department will not tolerate violence or threats of violence against judges or any other public servants at work, home, or any other location.”
Those joining the Attorney General at the meeting included U.S. Marshals Service Director Ron Davis, FBI Deputy Director Paul M. Abbate, U.S. Supreme Court Marshal Gail Curley, Supreme Court Police Chief Paul Coleman, and Counselor to the Chief Justice Jeff Minear.
18 Arrested, Charged in East Texas Paycheck Protection Program-Related FraudRead the Press Release
PLANO, Texas – Nineteen individuals have been named in a federal indictment charging them with violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
The indictment, returned by a federal grand jury on May 12, 2022, charges the defendants with conspiracy to commit wire fraud. The following 18 defendants have either been arrested or summoned for appearance before a federal magistrate judge:
Michael Lewayne Hill, a/k/a Tank, 47, of Mineral Wells;
Andrew Charles Moran, 43, of Lewisville;
Peter Keovongphet, a/k/a Lil’ Pete, 34, of Ft. Lauderdale, FL;
Ty Alan Burkhart, 34, of Frisco;
Jason Lawrence Geiger, a/k/a Austin St. John a/k/a the Red Power Ranger, 47, of McKinney;
Eric Reed Marascio, a/k/a Phoenix Marcon, 50, of Allen;
Christopher Lee McElfresh, 43, of Frisco;
Cord Dean Newman, 44, of Homosassa, FL;
Elmer Omar Ayala, 45, of Midlothian;
Gregory Fitzgerald Hatley, Jr., 38, of Allen;
Alexander Eric Cortesano, 52, of Dallas;
Arthur Atik Pongtaratik, 33, of Carrollton;
Miles Justin Urias, 34, of Richardson;
Fabian C. Hernandez, 44, of Lake Alfred, FL;
Daniel Lee Warren, 33, address unknown;
Rajaa Bensellam, 49, of Allen;
Hadi Mohammed Taffal, 50, of Allen; and
Jonathon James Spencer, a/k/a Spence, 33, of Rowlett.
According to the indictment, the defendants, led by Michael Hill and Andrew Moran, are alleged to have executed a scheme to defraud lenders and the Small Business Administration’s (SBA's) Paycheck Protection Program (PPP). Hill is alleged to have recruited co-conspirators to use an existing business or create a business to submit applications to obtain PPP funding. Once enlisted, Moran is alleged to have assisted his co-conspirators with the application paperwork, including fabricating supporting documentation and submitting the application through the online portals. On the applications, the defendants are alleged to have misrepresented material information such as the true nature of their business, the number of employees, and the amount of payroll. Based on these material misrepresentations, the SBA and other financial institutions approved and issued loans to the defendants. Once in receipt of the fraudulently obtained funds, the defendants did not use the money as intended, such as to pay employee salaries, cover fixed debt or utility payments, or continue health care benefits for employees. Instead, the defendants typically paid Hill and Moran, transferred money to their personal accounts, and spent the funds on various personal purchases. In other instances, the defendants sent the fraudulently obtained funds to Jonathon Spencer for purported investment in foreign exchange markets. In total, the defendants are alleged to have fraudulently obtained at least 16 loans and at least $3.5 million.
If convicted, the defendants each face up to 20 years in federal prison.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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"Long Time Coming" Update: Chicago Man Sentenced to Prison for Role in Multi-State Drug ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Chicago man was sentenced today to three years in prison, to be followed by three years of supervised release, for his role in a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine, fentanyl, cocaine and marijuana in Parkersburg and elsewhere.
According to court documents and statements made in court, on August 31, 2021, Floyd Dermonta Ramsey, 42, was riding in a vehicle while in possession of 98 pills containing fentanyl, just over 68 grams of cocaine, and approximately 3 pounds of marijuana that he intended to distribute to others. The vehicle was pulled over in Parkersburg by a trooper with the West Virginia State Police who searched the vehicle and seized the controlled substances.
Ramsey was delivering the drugs to the residence of co-defendant Carlo Ramsey as part of a months-long conspiracy to distribute various controlled substances in Parkersburg. Months of surveillance by law enforcement officers established that Floyd Ramsey was a supplier of various controlled substances to the conspiracy, which he would regularly transport or arrange to have transported by others into the Parkersburg area from Chicago.
Floyd Ramsey pleaded guilty to possession with intent to distribute fentanyl, cocaine, and marijuana, and has a long criminal history that now includes six felony convictions.
Today’s sentencing is the latest result from a nearly year-long investigation dubbed “Long Time Coming.” Co-defendants Carlo Ramsey, Era Dawn Corder, Ambera Roberts, Matthew Edward Depew, and Robert Sanders, Jr., previously pleaded guilty to felony charges in United States District Court for the Southern District of West Virginia. Roberts was sentenced to 1 year and six months in prison. Depew was sentenced to five years in prison. All other defendants are awaiting sentencing. The investigation also resulted in more than a dozen arrests on state criminal complaints in Wood County.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Parkersburg Narcotics Task Force (PNTF), the Parkersburg Police Department, the West Virginia State Police, the United States Postal Inspection Service, the Vienna Police Department, the Williamstown Police Department, the Wood County Sheriff’s Office, the Cabell County Sheriff’s Department, the Boyd County, Kentucky, Sheriff’s Department, the Russell, Kentucky, Police Department and the Raceland, Kentucky, Police Department.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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-163.
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17 May 2022
“Lunchtime Looter” charged in multiple crimesRead the Press Release
HOUSTON – A 35-year-old Houston man is set to make his appearance in federal court for allegedly committing multiple bank robberies in the Houston area, announced U.S. Attorney Jennifer B. Lowery.
Marques Bryant is charged with four counts of bank robbery. He is currently in federal custody and set for initial appearance before U.S. Magistrate Judge Sam S. Sheldon today at 2 p.m.
The criminal complaint, filed May 3, alleges Bryant committed four bank robberies in the Houston area and is allegedly connected to a separate bank robbery in Chicago.
From January to March, Bryant allegedly robbed IBC Bank, Wells Fargo Bank, Comerica Bank and PNC Bank. The charges allege that during each robbery, Bryant demanded money via a handwritten note, wore a black and white face mask, black jacket and White Sox hat. He then allegedly fled on foot following each robbery.
On March 15, Bryant also robbed a Chase Bank in Illinois, according to the complaint. There, he allegedly demanded money with a handwritten note which read “give me all the money in the drawer. Don’t call nobody no typing in the computer. Put it in a envelope. Will shoot.”
According to the complaint, he allegedly wore the same clothes and several accessories as during the Houston area robberies. The notes used during all the robberies also appear to be very similar, according to the charges.
If convicted, Bryant faces up to 20 years in federal prison and a possible $250,000 maximum fine.
The FBI Violent Crimes Task Force conducted the investigation with assistance from state and local law enforcement partners in Houston and Chicago. Assistant U.S. Attorney Jill Stotts is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Woman Serving Life Prison Sentence Allegedly Led Ring that Used Stolen Identities to Apply for Pandemic Unemployment BenefitsRead the Press Release
LOS ANGELES – Federal authorities today arrested five people linked to a ring that allegedly obtained at least $2 million in California unemployment insurance (UI) benefits – mostly pandemic-related relief – by using stolen identities, some of which belonged to California prison inmates.
The arrests were made pursuant to a 39-count indictment that charges 13 defendants in a scheme to use misappropriated personal identifying information (PII) to fraudulent apply for, and receive, unemployment benefits, mostly during the second half of 2020.
The lead defendant in the case is Natalie Le Demola, 37, who is currently serving a life prison sentence after she was convicted in 2005 of first-degree murder. The indictment also charges Carleisha Neosha Plummer, 32, of Los Angeles, who was a close associate of Demola in prison until she was paroled in July 2020.
The indictment charges all 13 defendants with conspiracy to commit wire fraud and bank fraud. The conspiracy count alleges 150 overt acts, including illegally obtaining PII, some of which was provided by an unnamed prison official employed by the California Department of Corrections and Rehabilitation.
The indictment names various defendants in 31 bank fraud counts and seven aggravated identity theft counts.
Demola, Plummer and other co-conspirators “would acquire the PII, such as the names, dates of birth, and Social Security numbers, of individuals, including identity theft victims, who were not eligible for UI benefits, including pandemic benefits, because they were employed, retired, or incarcerated,” the indictment alleges. Members of the conspiracy then allegedly used the information to make fraudulent online applications for UI benefits from the California Employment Development Department (EDD). Once the applications were approved, members of the conspiracy received EDD-funded debit that allowed them to withdraw money from ATMs across Southern California, according to the indictment.
The defendants named in the indictment are:
- Demola, originally of Corona, who will be brought to federal court to face the charges in this case;
- Plummer, 32, of Los Angeles, who was arrested today;
- Khanshanda King, 31, of Los Angeles, who is still being sought;
- Cleshay Johnson II, 28, of Los Angeles, who is still being sought;
- James Antonio Johnson, who has several aliases including “Big Dawg Niddy,” 31, of Los Angeles, who is currently in custody in a Los Angeles County jail;
- Felicite Aleisha King, 41, of Los Angeles, who is still being sought;
- Shafequah Lynete Mitchell, 33, of Los Angeles, who is currently traveling outside of California;
- Loresha Shamone Davis, 31, of Moreno Valley, who was arrested today;
- Porsha Latrice Johnson, 32, of Lynwood, who was arrested today;
- Donisha Lashawn Pace, 38, of South Los Angeles, who was arrested today;
- Dominique Charmone Martin, 37, of Yucaipa, who is still being sought;
- Mykara Destiny Robertson, 23, of Los Angeles, who is still being sought; and
- Amber Jane Wade, 34, of Palmdale, who was arrested today.
Those arrested today are being arraigned this afternoon in United States District Court in Los Angeles.
The conspiracy and bank fraud charges each carry a statutory maximum sentence of 30 years in federal prison. Aggravated identity theft carries a mandatory two-year consecutive sentence.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into this scheme was conducted by the Los Angeles El Camino Real Financial Crimes Task Force, a multi-agency task force led by Homeland Security Investigations that includes federal and state investigators who are focused on financial crimes in Southern California. The California Employment Development Department, the California Department of Corrections and Rehabilitation, the United States Department of Labor – Office of Inspector General, the Inglewood Police Department, and the United States Marshals Service participated in this investigation.
Assistant United States Attorney Gregory Bernstein of the Major Frauds Section is prosecuting this case.
Winner Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Winner, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on May 16, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Arvin Brave Bird, age 53, was sentenced to 16 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brave Bird was indicted by a federal grand jury on January 11, 2022. He pled guilty on February 24, 2022.
Brave Bird was convicted of Abusive Sexual Contact in April 2017. As a result of this conviction, he is required to register as a sex offender. On November 4, 2021, Brave Bird updated his registration to reflect that he was residing in Rapid City, South Dakota. In November 2021, Brave Bird was directed by his supervising probation officer to relocate to Yankton, South Dakota, for purposes of attending a treatment program. Brave Bird thereafter moved out of his Rapid City residence, but he did not report to treatment in Yankton and did not update his registration. An arrest warrant was subsequently issued and on December 16, 2021, Brave Bird was arrested at a residence in Winner.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Brave Bird was immediately turned over to the custody of the U.S. Marshals Service.
White River Man Sentenced for ArsonRead the Press Release
United States Attorney Alison J. Ramsdell announced that a White River, South Dakota, man convicted of Arson was sentenced on May 16, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Gabriel Roubideaux, age 34, was sentenced to 26 months in federal prison, followed by three years of supervised release, $22,675 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Roubideaux was indicted by a federal grand jury on June 8, 2021. He pled guilty on February 1, 2022.
The conviction stemmed from an incident that occurred in March 2021, in Mellette County, South Dakota. In the early morning hours of March 16, 2021, Roubideaux intentionally set fire to a shed that was next to an occupied residence in the Upper Swift Bear community. The shed subsequently collapsed against the residence, setting it on fire. Both the shed and the residence were destroyed in the fire.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Roubideaux was immediately turned over to the custody of the U.S. Marshals Service.
Waterloo Man Who Stole Semi-Automatic Rifle from Friend Sentenced to over Six Years in Federal PrisonRead the Press Release
A man who stole a friend’s firearm and sold it to a felon was sentenced May 16, 2022, to more than six years in federal prison.
Cole McNamara, age 28, from Waterloo, Iowa, received the prison term after a November 2, 2021 guilty plea to being a prohibited person in possession of a firearm.
In a plea agreement, McNamara admitted he was receiving treatment at a substance abuse facility in October 2020. He left the treatment facility and entered a friend’s home in Independence, Iowa, where he stole a semi-automatic rifle, among other items. McNamara was later apprehended at the Isle of Capri casino in possession of methamphetamine, his friend’s wallet, and titles to his friend’s vehicles. McNamara is prohibited from possessing firearms because he is a convicted felon, drug user, and was previously convicted of a misdemeanor crime of domestic violence. At sentencing, McNamara declared, “I am 100% guilty of this crime.” In reference to his previous convictions, the sentencing judge noted McNamara was a “one man crime wave.”
McNamara was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. McNamara was sentenced to 78 months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
McNamara is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Independence Police Department in Independence, Iowa.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-2069.
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Waterloo Drug Dealer Sentenced to Federal Prison for Possessing a FirearmRead the Press Release
A Waterloo man who illegally possessed a firearm as a drug user was sentenced May 16, 2022, to more than a year in federal prison.
Kierin Craig Johnson, age 24, from Waterloo, Iowa, received the prison term after an October 15, 2021 guilty plea to possession of a firearm by a drug user.
Information disclosed at sentencing showed that, in September and October 2019, Johnson posted several videos to social media showing him smoking marijuana and possessing a gun. Johnson also posted videos advertising the sale of marijuana. On October 18, 2019, law enforcement searched Johnson’s home, which he shared with his brother, and recovered evidence of marijuana distribution throughout the residence. While officers were searching, Johnson arrived home and officers seized a loaded handgun from a vehicle associated with Johnson. After his arrest, Johnson admitted to smoking marijuana for several years, and his urine specimen tested positive for marijuana and other substances.
Johnson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Johnson was sentenced to 12 months’ and 1 day imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Johnson was released on the bond previously set and is to surrender to the United States Marshal on May 31, 2022.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-02045.
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Warren Man Sentenced to Sixteen Years in Prison for Enticement of a Minor to Engage in Sex, Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, RI – A Warren man who admitted to enticing a minor female online to meet him at a local mall where he planned to dress her in a diaper and engage in illicit sexual activity, and who further admitted to possessing and distributing child pornography, was sentenced today to sixteen years in federal prison, announced United States Attorney Zachary A. Cunha.
Christopher Kinney, 47, previously admitted in court that in April 2018, he had a series of online communications with a person whom he believed to be a 14-year-old girl. The communications rapidly became sexually explicit, with Kinney expressing an interest in meeting the teenager at the Warwick Mall and then engaging in sexual activity in the mall or elsewhere. The person Kinney was communicating with was in fact a Rhode Island State Police Detective assigned to the Internet Crimes Against Children (ICAC) Task Force.
Kinney was subsequently arrested on April 26, 2018, when he travelled to the mall, believing he was going to meet the girl at the food court. A search of Kinney’s car resulted in the discovery of, diapers, condoms and various items that he had discussed using for sexual purposes during his prior chats. A cellphone seized from Kinney at the time of his arrest was found to contain 56 images of child pornography, as well as evidence that, on numerous occasions, he had electronically received and shared files of child pornography and images of children being harshly punished and/or beaten.
Kinney pled guilty in May 2018 to coercion and enticement of a minor, possession of child pornography, and distribution of child pornography. He was sentenced today by U.S. District Court Judge William E. Smith to 192 months in federal prison to be followed by lifetime supervised release. He was also ordered to pay $3,000 in restitution to a victim identified in the images found on his phone.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The matter was investigated by the Rhode Island Internet Crimes Against Children Task Force, with the assistance of Homeland Security Investigations.
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Visa holder indicted trafficking cocaine through WTBRead the Press Release
LAREDO, Texas – A 31-year-old Mexican National who resided in Nuevo Laredo, Tamaulipas, has been charged with conspiracy to possess with intent to distribute more than five kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury returned the two-count indictment against Sergio Bustos-Cruz. He is expected to appear for his arraignment in the near future before U.S. Magistrate Judge Diana Song Quiroga.
Originally charged by criminal complaint, Bustos-Cruz allegedly attempted to drive through the World Trade Bridge in Laredo on April 21. Upon arrival, authorities referred him to secondary inspection where an X-ray can of his vehicle revealed anomalies within the roof of the tractor cab, according to the charges.
Upon further inspection, law enforcement allegedly discovered several bundles containing 11.62 kilograms of cocaine.
The charges further allege he in violation of the terms of his non-immigrant Visa and could face removal proceedings following his .
If convicted, Bustos-Cruz faces up to life in prison and a possible $10 million maximum fine.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorney Matthew Isaac is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
University of Maryland Shore Regional Health Agrees to Pay $296,870 to Settle Federal False Claims Act Allegations of Billing for Unsupervised Radiation Therapy and Diagnostic ServicesRead the Press Release
Baltimore, Maryland – The University of Maryland Shore Regional Health in Easton, Maryland (“Shore Health”), has agreed to pay the United States $296,870 to resolve allegations that it violated the federal False Claims Act by submitting false claims to the United States for radiation therapy and diagnostic services that lacked the required supervision from a physician.
The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron and by Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services-Office of Inspector General.
“It is imperative that Medicare and other federal health care programs are protected from fraud because those programs are funded through taxpayer dollars,” said United States Attorney Erek L. Barron. “The United States Attorney’s Office will hold accountable those providers who defraud federal health care programs.”
“Providers who submit false claims to Medicare are undermining the integrity of federal health care programs,” said Special Agent in Charge Maureen Dixon, at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to protect valuable taxpayer dollars from fraud.”
Shore Health is a part of the University of Maryland Medical System and primarily serves the needs of Maryland residents in Caroline, Dorchester, Queen Anne’s, Talbot, and Kent counties. According to the settlement agreement, from January 16, 2014 through July 5, 2018, Shore Health billed Medicare for radiation therapy and diagnostic services. During this time period, Medicare covered radiation therapy and diagnostic services furnished in an outpatient setting when rendered under the direct supervision of a physician. “Direct supervision” means that the physician must be immediately available to furnish assistance and direction throughout the performance of the procedure. It does not mean that the physician must be present in the room when the procedure is performed. At all relevant times, Shore Health had only one physician, John Mastandrea, M.D., available to supervise radiation therapy and diagnostic services. This settlement resolves allegations that on many occasions, Dr. Mastandrea was performing uninterruptible radiation oncology services at a separate location while unsupervised radiation therapy and diagnostic services were being performed at Shore Health.
This matter arose from a lawsuit filed by J. Phillip Sawyer, a former employee of Shore Health, under the whistleblower provision of the False Claims Act. The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. The civil lawsuit is captioned United States ex rel. John Phillip Sawyer v. Shore Health System and John Mastandrea, 18-cv-02228-JKB (D. Md). As part of the settlement, Mr. Sawyer will receive $51,952.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Shore Health nor a concession by the United States that its claims are not well founded.
United States Attorney Erek L. Barron commended the HHS-OIG for their work in this investigation. Mr. Barron thanked Assistant U.S. Attorney Vince Vaccarella, who handled this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Two charged for smuggling over 100 people through Laredo checkpointsRead the Press Release
LAREDO, Texas – A Laredo federal grand jury has returned two separate and unrelated indictments which involve transporting and/or smuggling of large groups of undocumented aliens via tractor trailers, announced U.S. Attorney Jennifer B. Lowery.
David William McKeon, 67, Laredo, and Ramiro Leija-Urbina, 31, Nuevo Laredo, Mexico, are charged in a three and two-count indictment, respectively. They are both expected to appear for their arraignments before a U.S. Magistrate Judge in the near future.
Both were originally charged by criminal complaint and have remained in custody.
The first indictment alleges that on April 20, McKeon drove a tractor trailer to the Border Patrol (BP) checkpoint on Interstate Highway 35. During initial inspection, law enforcement heard noises coming from inside of the trailer, according to the charges. They opened the doors and allegedly discovered 124 non-U.S. citizens including two unaccompanied minors. The indictment alleges all were determined to be illegally present in the country.
McKeon had an expired commercial driver’s license and was to be paid for driving the vehicle to San Antonio, according to the charges.
A separate, but similar indictment against Leija-Urbina alleges he attempted to drive a tractor trailer though the Interstate Highway 35 BP checkpoint in Laredo. There, a K-9 allegedly alerted authorities to the presence of concealed humans, according to the charges.
Upon further inspection, law enforcement allegedly discovered 160 non-U.S. citizens in the trailer. All were determined to be illegally present in the United States, according to the charges.
Leija-Urbina is a also non-immigrant visa holder and could face removal proceedings if convicted.
McKeon is charged with human smuggling and faces up to 30 years in prison, while Leija-Urbina faces up to 10 years, upon conviction for illegally transporting undocumented aliens.
Both could also be ordered to pay up to $250,000 in fines.
Homeland Security Investigations conducted both investigations with assistance from BP. Assistant U.S. Attorney Brian Bajew and Matthew Isaac are prosecuting the McKeon and Leija-Urbina cases, respectively.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Philadelphia Men Facing Federal Charges After Botched Robbery of Northeast Philly Corner Store Results in Exchange of GunfireRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Resean Lewis, 25, and William McIntyre, 27, both of Philadelphia, PA, were arrested and charged by Indictment with attempted Hobbs Act robbery, and carrying and discharging a firearm during and in relation to a crime of violence in connection with a shooting that occurred earlier this year when they attempted to rob a convenience store in Northeast Philadelphia. Both defendants made their initial appearances in federal court on these charges today and were detained pending trial.
The Indictment alleges that on February 1, 2022, the defendants entered the Big A Market corner store on Torresdale Avenue in the Wissinoming section of the city just before 4:00 a.m., and attempted to rob the business. Lewis went behind the counter armed with what appeared to be a Tec9 style firearm and announced a robbery. McIntyre followed just behind Lewis, armed with a pistol that he pulled from his waistband. The store manager happened to have his dog with him in the store at the time. When the dog realized that Lewis had come back to the employee area, it jumped up and distracted Lewis, giving the store clerk a chance to draw a weapon that the store keeps for protection. The clerk then shot Lewis multiple times. McIntyre, who was standing right behind Lewis, immediately returned fire and struck the store clerk multiple times.
“When I announced the All Hands On Deck initiative over one year ago, I vowed that we would do all we could to stop the violent crime ravaging our city and support the Philadelphia Police Department in its work,” said U.S. Attorney Williams. “I also put criminals on notice that we were doubling down on our efforts to identify, arrest and charge them in the federal system for their crimes. The indictments of these defendants show that we have kept our word to focus on getting the most violent individuals off the street and behind bars.”
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.
If convicted, the defendants face a maximum possible sentence of life in prison, and a mandatory minimum of 10 years in prison.
The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tucson Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE- Eduardo A. Arguelles, Jr., age 20, of Tucson, Arizona, was sentenced by United States District Court Judge Holly A. Brady, on his plea of guilty to possession with intent to distribute cocaine, fentanyl, and heroin, maintaining a drug-involved premises and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Arguelles was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in this case, in September 2021, a series of search warrants were executed on a Fort Wayne address at which Arguelles was staying and a storage locker he was renting. During service of the search warrant in the home, authorities found approximately one pound of fentanyl pills and 100 grams of heroin, along with guns, cash, and an apparent drug ledger. In Arguelles’s storage unit, law enforcement recovered approximately six kilograms of cocaine.
The case was investigated by the Drug Enforcement Administration with the assistance of Allen County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Sarah E. Nokes.
Todd County Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Todd County, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on May 16, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Eugene Hollow Horn Bear, age 62, was sentenced to 24 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hollow Horn Bear was indicted by a federal grand jury on July 14, 2021. He pled guilty on February 28, 2022.
Hollow Horn Bear was convicted of Assault with Intent to Commit Rape in April 1982 and Sexual Abuse of a Minor in August 1989. As a result of these convictions, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. Between November 2, 2020, and April 23, 2021, Hollow Horn Bear failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Hollow Horn Bear was immediately turned over to the custody of the U.S. Marshals Service.
Three Portfolio Managers and Allianz Global Investors U.S. Charged in Connection with Multibillion-Dollar Fraud SchemeRead the Press Release
Allianz Global Investors U.S. LLC Also Charged with Securities Fraud, Agrees to Plead Guilty
An indictment was unsealed today in the Southern District of New York charging Gregoire Tournant, the Chief Investment Officer and co-lead Portfolio Manager for a series of private investment funds managed by Allianz Global Investors U.S. LLC (AGI), with securities fraud, investment adviser fraud and obstruction of justice offenses in connection with a scheme to defraud investors. Those funds ultimately collapsed, leading to billions of dollars of investor losses. Tournant surrendered to Postal Inspectors in Denver, Colorado, this morning and is expected to be presented later today. The case has been assigned to U.S District Court Judge Laura Taylor Swain.
Also unsealed today are the guilty pleas of Trevor Taylor and Stephen Bond-Nelson in connection with their respective roles in the scheme. Taylor pleaded guilty pursuant to an information before U.S. District Judge Denise Cote on March 8. Bond-Nelson pled guilty pursuant to an information before U.S. District Judge Paul A. Engelmayer on March 3. Both are cooperating with the government.
“I previously warned that the Department of Justice would crack down on corporate crime, without regard to size, salary or other privilege,” said Deputy Attorney General Lisa O. Monaco. “For the second time in under a month, the Department has brought charges in connection with a sophisticated Wall Street scheme that cost victims billions of dollars. Other corporations should take note that the results here are driven in part by the fact that this company failed to self-report their crimes. The Department stands ready to keep bringing these kinds of charges to assure the public that no one is above the law.”
U.S. Attorney Damian Williams for the Southern District of New York and Inspector-in-Charge Daniel B. Brubaker of the New York Office of the U.S. Postal Inspection Service also announced today a plea agreement (the agreement) pursuant to which AGI will plead guilty to securities fraud in connection with this fraudulent scheme, and pay more than $3 billion in restitution to the victims of this fraud, pay a criminal fine of approximately $2.3 billion, and forfeit approximately $463 million to the government. The case has been assigned to U.S. District Judge Colleen McMahon. A conference has been scheduled for today at 3:00 p.m. before U.S. District Court Judge Loretta A. Preska, at which time AGI is expected to plead guilty to an information pursuant to the agreement.
“As alleged, Gregoire Tournant and his co-conspirators lied to investors and secretly exposed them to substantial risk in order to line their own pockets and those of their employer, AGI,” said U.S. Attorney Williams. “Pensions funds for so many retirees, religious organizations and essential workers – from laborers in Alaska, to teachers in Arkansas, to bus drivers and subway conductors here in New York City – invested with AGI because they were promised a relatively safe investment with strict risk controls. But AGI, the ‘master cop’ that Tournant claimed was watching over his shoulder, making sure that he adhered to his promises, was asleep on the beat. And when the storm came in March 2020, when the COVID-19 crash hit, these investors got soaked and lost billions. Today’s actions are further evidence that this office is not asleep on the beat and that with our law enforcement partners we will act swiftly to protect investors and bring white collar criminals to justice.”
“These individuals working under the name of Allianz Global Investors, an international management firm, allegedly took advantage of its global recognition when they devised a scheme to mislead investors leading to the loss of billions of dollars,” said Inspector-in-Charge Daniel B. Brubaker of the New York Office of the U.S. Postal Inspection Service. “Postal Inspectors will never let these schemes go unchecked and will vigorously investigate and pursue those who choose criminal behavior over honest business practices.”
According to the allegations in the indictment and the agreement unsealed today in Manhattan federal court:
Between 2014 and 2020, Gregoire Tournant, the defendant, was the Chief Investment Officer of a set of private funds at AGI known as the Structured Alpha Funds. These funds were marketed largely to institutional investors, including pension funds for workers all across America. As alleged, Tournant and his co-conspirators misled these investors into believing that the funds were protected from a sudden stock market crash with particular hedges. But in late 2015, as the cost of those promised hedges increased, Tournant decided to lie and secretly buy cheaper hedges that provided much less protection to investors. As alleged, Tournant and his co-conspirators also provided investors with altered documents that were sent to investors to hide the true riskiness of the funds’ investments, including that they were buying cheaper hedges.
In March 2020, following the onset of market dislocations brought on by the COVID-19 pandemic, the funds lost in excess of $7 billion in market value, including over $3.2 billion in principal, faced margin calls and redemption requests, and ultimately were shut down. More than 100 institutional investors, representing more than 100,000 individuals, were victims of this scheme. These institutional investors included, among others, pension funds for teachers in Arkansas, laborers in Alaska, bus drivers and subway conductors in New York City, as well as religious organizations, engineers, and other individuals, universities and charitable organizations across the United States.
The scheme alleged was an egregious, long-running and extensive fraud that went undetected for years. It occurred at a very profitable component of AGI – one that accounted for 25% of AGI’s revenue in recent years, which amounted to hundreds of millions of dollars. As alleged, one of the ways Tournant carried out the fraud was by marketing the fact that he worked for a well-respected financial institution, AGI, which is a part of the Allianz SE (Allianz) family. Allianz is one of the world’s largest financial services companies and one of the world’s largest insurance companies. Tournant touted the protections provided by the funds’ position within the global Allianz corporate structure, calling Allianz a “master cop” that would ensure that Tournant followed the risk guidelines promised to investors.
Despite Tournant’s claim that Allianz acted as a “master cop” looking over his shoulder, no one at AGI or Allianz was verifying that Tournant and his colleagues were actually adhering to the investment strategies promised to investors. No risk or compliance personnel at AGI verified, attempted to verify or were responsible for verifying that Tournant and his colleagues were purchasing hedging positions within the range that was represented to investors. Much of this historic fraud was made possible because AGI’s control environment was not designed to verify that Tournant and his co-conspirators were telling investors the truth. Because AGI, a registered investment adviser, failed to provide meaningful oversight, Tournant and his co-conspirators were able to deceive investors about the risks they were taking with their money.
In addition, as alleged, in the summer of 2020, after the onset of the pandemic and in order to cover up the fraudulent scheme, Tournant attempted to obstruct an investigation by the U.S. Securities and Exchange Commission (SEC) into the circumstances that led to the losses in March 2020.
As the introductory phrase signifies, the entirety of the text of the indictment and the description of the indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
A chart containing the names, ages, residences, charges and maximum penalties for the defendants is attached.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The U.S. Postal Inspection Service and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York investigated this case. The U.S. Securities and Exchange Commission filed a parallel civil action today.
This case is being handled by SDNY’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Gina Castellano, Nicholas Folly and Richard Cooper are in charge of the prosecution.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Residence
Charges
Maximum Potential Sentence(s)
United States v. Gregoire Tournant, 22 Cr. 276 (LTS)
TOURNANT
55
Basalt, Colorado
Conspiracy to commit securities fraud, investment adviser fraud, and wire, 18 U.S.C. § 371 (Count One)
Securities fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Two)
Investment adviser fraud, 15 U.S.C. §§ 80b-6 & 80b-17 (Count Three)
Investment adviser fraud, 15 U.S.C. §§ 80b-6(4) & 80b-17, 17 C.F.R. § 275.206(4)-8 (Count Four)
Conspiracy to obstruct justice, 18 U.S.C. § 371 (Count Five)
5 years
20 years
5 years (on each count)
5 years
5 years
United States v. Trevor Taylor, 22 Cr. 149 (DLC)
TAYLOR
49
Miami, Florida
Conspiracy to commit securities fraud, investment adviser fraud, and wire fraud, 18 U.S.C. § 371 (Count One)
Securities fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Two)
Investment adviser fraud, 15 U.S.C. §§ 80b-6 & 80b-17 (Count Three)
5 years
20 years
5 years
United States v. Stephen Bond-Nelson, 22 Cr. 137 (PAE)
BOND-NELSON
51
Berkeley Heights, New Jersey
Conspiracy to commit securities fraud, investment adviser fraud, and wire fraud, 18 U.S.C. § 371 (Count One)
Securities fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Two)
Investment adviser fraud, 15 U.S.C. §§ 80b-6 & 80b-17 (Count Three)
Conspiracy to obstruct justice, 18 U.S.C. § 371 (Count Four)
5 years
20 years
5 years
5 years
United States v. Allianz Global Investors U.S. LLC
AGI US
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Two)
5 years’ probation
Three Portfolio Managers and Allianz Global Investors U.S. Charged in Connection with Multi-Billion Dollar Fraud SchemeRead the Press Release
Allianz Global Investors U.S. LLC Also Charged With Securities Fraud, Agrees to Plead Guilty
Damian Williams, the United States Attorney for the Southern District of New York, Lisa O. Monaco, the Deputy Attorney General of the United States, and Daniel B. Brubaker, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an indictment charging GREGOIRE TOURNANT, the Chief Investment Officer and co-lead Portfolio Manager for a series of private investment funds managed by Allianz Global Investors U.S. LLC (“AGI”), with conspiracy, securities fraud, investment adviser fraud, and obstruction of justice offenses in connection with a scheme to defraud investors. Those funds ultimately collapsed, leading to billions of dollars of investor losses. TOURNANT surrendered to Postal Inspectors in Denver, Colorado this morning and is expected to be presented later today. The case has been assigned to U.S District Judge Laura Taylor Swain.
Also unsealed today are the guilty pleas of TREVOR TAYLOR and STEPHEN BOND-NELSON in connection with their respective roles in the scheme. TAYLOR pled guilty pursuant to an Information before U.S. District Judge Denise Cote on March 8, 2022. BOND-NELSON pled guilty pursuant to an Information before U.S. District Judge Paul A. Engelmayer on March 3, 2022. Both are cooperating with the Government.
U.S. Attorney Williams, Deputy Attorney General Monaco, and Inspector-in-Charge Brubaker also announced today a plea agreement (the “Agreement”) pursuant to which AGI will plead guilty to securities fraud in connection with this fraudulent scheme, and pay more than $3 billion in restitution to the innocent victims of this fraud, pay a criminal fine of approximately $2.3 billion, and forfeit approximately $463 million to the Government. The case has been assigned to U.S. District Judge Colleen McMahon. A conference has been scheduled for today at 3:00 p.m. before U.S. District Judge Loretta A. Preska, Part I, at which time AGI is expected to plead guilty to an Information pursuant to the Agreement.
U.S. Attorney Damian Williams said: “As alleged, Gregoire Tournant and his co-conspirators lied to investors and secretly exposed them to substantial risk in order to line their own pockets and those of their employer, AGI. Pension funds for so many retirees, religious organizations, and essential workers – from laborers in Alaska, to teachers in Arkansas, to bus drivers and subway conductors here in New York City – invested with AGI because they were promised a relatively safe investment with strict risk controls. But AGI, the “master cop” that Tournant claimed was watching over his shoulder, making sure that he adhered to his promises, was asleep on the beat. And when the storm came in March 2020, when the COVID crash hit, these investors got soaked and lost billions. Today’s actions are further evidence that this office is not asleep on the beat and that with our law enforcement partners we will act swiftly to protect investors and bring white collar criminals to justice.”
Deputy Attorney General Lisa O. Monaco said: “I previously warned that the Department of Justice would crack down on corporate crime, without regard to size, salary, or other privilege. For the second time in under a month, the Department has brought charges in connection with a sophisticated Wall Street scheme that cost victims billions of dollars. Other corporations should take note that the results here are driven in part by the fact that this company failed to self-report their crimes. The Department stands ready to keep bringing these kinds of charges to assure the public that no one is above the law.”
USPIS Inspector-in-Charge Daniel B. Brubaker said: “These individuals working under the name of Allianz Global Investors, an international management firm, allegedly took advantage of its global recognition when they devised a scheme to mislead investors leading to the loss of billions of dollars. Postal Inspectors will never let these schemes go unchecked and will vigorously investigate and pursue those who choose criminal behavior over honest business practices.”
According to the allegations in the Indictment and the Agreement unsealed today in Manhattan federal court:[1]
Between 2014 and 2020, GREGOIRE TOURNANT, the defendant, was the Chief Investment Officer of a set of private funds at AGI known as the Structured Alpha Funds. These funds were marketed largely to institutional investors, including pension funds for workers all across America. As alleged, TOURNANT and his co-conspirators misled these investors into believing that the funds were protected from a sudden stock market crash with particular hedges. But in late 2015, as the cost of those promised hedges increased, TOURNANT decided to lie and secretly buy cheaper hedges that provided much less protection to investors. As alleged, TOURNANT and his co-conspirators also provided investors with altered documents that were sent to investors to hide the true riskiness of the funds’ investments, including that they were buying cheaper hedges.
In March 2020, following the onset of market dislocations brought on by the COVID-19 pandemic, the funds lost in excess of $7 billion in market value, including over $3.2 billion in principal, faced margin calls and redemption requests, and ultimately were shut down. More than 100 institutional investors, representing more than one hundred thousand individuals, were victims of this scheme. These institutional investors included, among others, pension funds for teachers in Arkansas, laborers in Alaska, bus drivers and subway conductors in New York City, as well as religious organizations, engineers, and other individuals, universities, and charitable organizations across the United States.
The scheme alleged was an egregious, long-running, and extensive fraud that went undetected for years. It occurred at a very profitable component of AGI – one that accounted for 25% of AGI’s revenue in recent years, which amounted to hundreds of millions of dollars. As alleged, one of the ways TOURNANT carried out the fraud was by marketing the fact that he worked for a well-respected financial institution, AGI, which is a part of the Allianz SE (“Allianz”) family. Allianz is one of the world’s largest financial services companies and one of the world’s largest insurance companies. TOURNANT touted the protections provided by the funds’ position within the global Allianz corporate structure, calling Allianz a “master cop” that would ensure that TOURNANT followed the risk guidelines promised to investors.
Despite TOURNANT’s claim that Allianz acted as a “master cop” looking over his shoulder, no one at AGI or Allianz was verifying that TOURNANT and his colleagues were actually adhering to the investment strategies promised to investors. No risk or compliance personnel at AGI verified, attempted to verify, or were responsible for verifying that TOURNANT and his colleagues were purchasing hedging positions within the range that was represented to investors. Much of this historic fraud was made possible because AGI’s control environment was not designed to verify that TOURNANT and his co-conspirators were telling investors the truth. Because AGI, a registered investment adviser, failed to provide meaningful oversight, TOURNANT and his co-conspirators were able to deceive investors about the risks they were taking with their money.
In addition, as alleged, in the summer of 2020, after the onset of the pandemic and in order to cover up the fraudulent scheme, TOURNANT attempted to obstruct an investigation by the U.S. Securities and Exchange Commission (the “SEC”) into the circumstances that led to the losses in March 2020.
* * *
A chart containing the names, ages, residences, charges, and maximum penalties for the defendants is attached.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the USPIS and Special Agents of the United States Attorney’s Office. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Margaret Graham, Gina Castellano, Nicholas Folly, and Richard Cooper are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Residence
Charges
Maximum Potential Sentence(s)
United States v. Gregoire Tournant, 22 Cr. 276 (LTS)
TOURNANT
55
Basalt, Colorado
Conspiracy to commit securities fraud, investment adviser fraud, and wire, 18 U.S.C. § 371
(Count One)
Securities fraud, 15 U.S.C. §§ 78j(b) & 78ff
(Count Two)
Investment adviser fraud, 15 U.S.C. §§ 80b-6 & 80b-17 (Count Three)
Investment adviser fraud, 15 U.S.C. §§ 80b-6(4) & 80b-17, 17 C.F.R. § 275.206(4)-8 (Count Four)
Conspiracy to obstruct justice, 18 U.S.C. § 371 (Count Five)
5 years
20 years
5 years (on each count)
5 years
5 years
United States v. Trevor Taylor, 22 Cr. 149 (DLC)
TAYLOR
49
Miami, Florida
Conspiracy to commit securities fraud, investment adviser fraud, and wire fraud, 18 U.S.C. § 371 (Count One)
Securities fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Two)
Investment adviser fraud, 15 U.S.C. §§ 80b-6 & 80b-17 (Count Three)
5 years
20 years
5 years
United States v. Stephen Bond-Nelson, 22 Cr. 137 (PAE)
BOND-NELSON
51
Berkeley Heights, New Jersey
Conspiracy to commit securities fraud, investment adviser fraud, and wire fraud, 18 U.S.C. § 371 (Count One)
Securities fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Two)
Investment adviser fraud, 15 U.S.C. §§ 80b-6 & 80b-17 (Count Three)
Conspiracy to obstruct justice, 18 U.S.C. § 371
(Count Four)
5 years
20 years
5 years
5 years
United States v. Allianz Global Investors U.S. LLC, 22 Cr. 279 (CM)
AGI US
Securities Fraud, 15 U.S.C. §§ 78j(b) & 78ff (Count Two)
5 years’ probation
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Suburban Chicago Man Sentenced to More Than Three Years in Federal Prison for Threatening Violence at 2021 Presidential InaugurationRead the Press Release
CHICAGO — A suburban Chicago man was sentenced today to more than three years in federal prison for sending a series of threatening phone calls to various members of the United States Congress and threatening to commit violence at the 2021 presidential inauguration in Washington, D.C.
U.S. District Judge Ronald A. Guzman sentenced LOUIS CAPRIOTTI, 47, of Chicago Heights, Ill., to 37 months in prison. Capriotti pleaded guilty last fall to a federal charge of transmitting a threat in interstate commerce. He has been in federal custody since his arrest on Jan. 12, 2021, and will receive credit for time already served.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Secret Service and U.S. Capitol Police participated in the investigation. Assistant U.S. Attorneys James P. Durkin and William Dunne represented the government.
In a Dec. 29, 2020, voicemail for a U.S. House member, Capriotti stated that if certain individuals “think that Joe Biden is going to put his hand on the Bible and walk into that [expletive] White House on January 20th, they’re sadly [expletive] mistaken.” Capriotti further stated in the voicemail, “We will surround the [expletive] White House and we will kill any [expletive] Democrat that steps on the [expletive] lawn.”
Capriotti in November and December 2020 left other threatening messages on the voicemail systems of other members of Congress, during which he falsely stated that he was an active U.S. Marine and referred to certain members of Congress as “terrorists.”
“Capriotti’s crime was a serious offense,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum. “Such threats must be taken seriously because they have real implications for the victims receiving them.”
Stotts City Man Sentenced to 24 Years for Shooting at Officer During High-Speed Chase, Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Stotts City, Mo., man was sentenced in federal court today for shooting at a police officer during a high-speed chase that began in Carthage, Mo., and for illegally possessing methamphetamine to distribute.
Raul A. Gonzalez Reyes, 35, was sentenced by U.S. District Judge M. Douglas Harpool to 24 years in federal prison without parole. The court granted the government’s request for an upward variance due to the egregiousness of Gonzalez Reyes’s criminal behavior.
On Nov. 17, 2021, Gonzalez Reyes pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of discharging a firearm in furtherance of a drug-trafficking crime.
Gonzalez Reyes was arrested on Oct. 12, 2020, following a pursuit by law enforcement officers in which he shot at an officer before crashing his vehicle. According to court documents, Gonzalez Reyes also shot at a law enforcement officer earlier the same day but was able to elude the officer following a high-speed chase.
A Carthage Police Department sergeant attempted to conduct a traffic stop after Gonzalez Reyes committed several traffic violations while driving a Ford pick-up truck with a license plate registered to another vehicle. When the police sergeant activated his emergency lights and siren, Gonzalez Reyes began accelerating to a high rate of speed. The sergeant saw muzzle flashes and heard gunshots coming from the pickup towards his vehicle. According to court documents, Gonzalez Reyes later told investigators he continued shooting until the magazine fell out of the gun, and then he attempted to access a rifle with a scope. He intended to use all 32 rounds of 9mm ammunition. As Gonzalez Reyes continued shooting, the sergeant increased the distance between his vehicle and the pickup to await assistance from other officers.
As Gonzalez Reyes approached County Road 170 in Jasper County, Mo., he lost control of the pickup, which left the roadway and rolled. When Gonzalez Reyes refused orders to get out of his vehicle, he was placed in handcuffs and removed from the vehicle.
Officers searched the pickup and found a Heritage Rough Rider firearm, a Nomad American Tactical firearm, a Remington Arms firearm, a Mossberg firearm, a Savage firearm, a Stoeger firearm, and four baggies that contained a total of approximately 171.38 grams of pure methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the FBI, the Missouri State Highway Patrol, the Carthage, Mo., Police Department, and the Ozarks Drug Enforcement Team.
South Florida Tax Preparer Sentenced to 18 Months in Prison for Tax FraudRead the Press Release
Miami, Florida – Kasali Opabola, Jr., a Lake Worth, Florida tax preparer who failed to report his business income to the IRS, was sentenced yesterday to 18 months in federal prison and ordered to pay over $1.2 million in restitution.
Opabola, 41, was the sole officer and registered agent of FTP Tax Solutions, LLC, a company registered in Florida. Opabola grossly underreported his income from his business - FTP Tax Solutions, LLC, for tax years 2014 and 2015 and failed to file a 2016 income tax return. For those tax years, Opabola failed to pay approximately $1,289,293 in federal income taxes.
Opabola previously pled guilty to two counts of filing a false individual income tax return and one count of failure to file an individual income tax return.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida and Special Agent in Charge Matthew D. Line, IRS Criminal Investigation (IRS-CI), Miami Field Office, announced the sentence imposed by U.S. District Judge Kenneth A. Marra, who sits in West Palm Beach.
Assistant U. S. Attorney Robin Waugh prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 21-cr-80042.
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Sixteen Defendants Arrested on Federal Drug Conspiracy Charges out of Chesterfield and Darlington CountiesRead the Press Release
Florence, South Carolina --- A joint team of federal, state, and local law enforcement officers have arrested 16 individuals who have all been charged in federal court for their roles in a conspiracy to distribute and possess with intent to distribute methamphetamine.
The following defendants have been arrested and arraigned on their respective charges related to their alleged roles in the drug conspiracy, and are charged with 500 grams or more of methamphetamine and face a potential penalty of 10 years to life imprisonment:
- Russell Maurice Moses, a/k/a “Hammer,” 33, of Lydia
- Jerry Glenn Brown, a/k/a “Glenn,” 51, of Hartsville
- Richard Bradley Caddell, a/k/a “Brad,” 31, of McBee
- Daniel Joseph Walters, a/k/a “Moonie,” 47, of Patrick
- Ricky Lee Johnson, Jr., a/k/a “Lee Champion,” 32, of Cheraw
- Ashley Lynn Griggs, 33, of Patrick
- Daniel Howard Dixon, a/k/a “DJ,” 27, of Bennettsville
- Russell Dwayne Gause, a/k/a “Rut,” 40, of Cheraw
- Walter Elliott Hodge, 39, of Chesterfield
- Don Edwards Jones, 41, of Hartsville
- Linda Dale Lett, a/k/a “Dale,” 40, of Patrick
- Bryan Drake Melton, a/k/a “Drake,” 38, of Cheraw
The following defendants are charged with 50 grams or more of methamphetamine and face a potential penalty of 5 years to 40 years imprisonment:
- Ryan Cody Roberts, a/k/a “Tune G,” 31, of McBee
- Crystal Renee Dixon, 36, of Darlington
- Jessica Ashley Melton, 36, of Hartsville
- Garrett Tyler Gainey, 29, of McBee
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration (DEA), Chesterfield County Sheriff’s Office, Darlington County Sheriff’s Office, Chesterfield Police Department, Hartsville Police Department, and the Florence County Sheriff’s Office. Assistant U.S. Attorney Lauren Hummel is prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Sisseton Man Sentenced to 85 Months in Federal Prison for Domestic Violence AssaultRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Sisseton, South Dakota, man convicted of assault of an intimate and dating partner by strangling, suffocating, or attempting to strangle or suffocate was sentenced on May 16, 2022, by U.S. District Judge Charles B. Kornmann.
Christopher J. Keeble, age 33, was sentenced to 85 months in federal prison, followed by three years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund. Keeble pled guilty on November 21, 2021.
On or about May 21, 2021, Keeble’s intimate and dating partner was at her home when Keeble arrived unannounced. Keeble asked her to come outside alone, to which she complied. When she came outside and was alone with Keeble, he immediately threatened her with harm if she screamed or yelled. Keeble then assaulted her by chocking her to a point of closely losing consciousness and by punching her in the face. As a result of the assault, the victim sustained bodily injuries. Keeble’s conduct was unprovoked and also violated a tribal court order of protections involving the same victim.
This case was investigated by the Federal Bureau of Investigation and Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Keeble was immediately returned to the custody of the U.S. Marshals Service to serve his sentence.
Seminole County Man Sentenced to 15 Years for Selling Fentanyl Analogue Causing A DeathRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Timothy Leon Wilson, Jr. (25, Seminole County) to 15 years in federal prison. Wilson had pleaded guilty on December 15, 2021.
According to court documents, on April 4, 2017, Wilson sold an individual a mixture of furanyl fentanyl and heroin which caused the individual to overdose shortly after using the substance. Seminole County Fire Department immediately responded and rushed the victim to the hospital, but he died shortly after arriving. On the same day, law enforcement was able to set up a controlled purchase with Wilson for additional drugs. Wilson arrived at the controlled purchase location with more of the same substance that he had sold the victim earlier that day. Wilson also brought a loaded firearm with him and was arrested. He admitted to selling the drugs to the victim.
The Medical Examiner confirmed that the cause of death to the victim was a heroin and furnyl fentanyl overdose. Furanyl fentanyl is an analogue of fentanyl and is on Schedule I of the Drug Enforcement Administrations’ schedules of controlled substances.
This case was investigated by the Seminole County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney John Gardella.
Rosebud Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on May 16, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Edward Zane Roubideaux, Jr., age 31, was sentenced to 24 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Roubideaux was indicted by a federal grand jury on December 14, 2021. He pled guilty on February 10, 2022.
Roubideaux was convicted of Sexual Abuse of a Minor in November 2011. As a result of this conviction, he is required to register as a sex offender. On May 7, 2021, Roubideaux updated his sex offender registration to reflect that he was residing at an address in Sioux Falls. Roubideaux moved out of his registered address on June 30, 2021, and thereafter did not update his registration. On August 6, 2021, Roubideaux was arrested in Sioux Falls. Between July 3, 2021, and August 6, 2021, Roubideaux failed to properly resister as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service and the Sioux Falls Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Roubideaux was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Possession of Stolen FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Possession of a Stolen Firearm was sentenced on May 16, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Hank Dubray, age 36, was sentenced to 14 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dubray was indicted by a federal grand jury on September 18, 2018, and pleaded guilty on July 12, 2021. The conviction stems from Dubray knowingly possessing a stolen Ruger, model SR40, .40 caliber pistol with an obliterated serial number. The Ruger pistol was among the 24 firearms that were stolen by two other individuals from The Rooster sporting goods store in Rapid City in August 2018. During the investigation, 22 of the 24 stolen guns were recovered by law enforcement.
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.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, South Dakota Division of Criminal Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Dubray was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Involuntary Manslaughter was sentenced on May 16, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Joshua Walking Eagle, age 32, was sentenced to 30 months in federal prison, followed by three years of supervised release, $7,215.50 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Walking Eagle was indicted by a federal grand jury on September 9, 2020. He pled guilty on February 25, 2022.
The conviction stemmed from an incident that occurred on May 29, 2020, in Rosebud, South Dakota. On that date, a group of individuals that included Walking Eagle and the victim were consuming alcoholic beverages and socializing at a residence in Rosebud. A man driving by in a vehicle stopped in front of the residence and brandished a firearm at Walking Eagle. Walking Eagle and the victim approached the vehicle and confronted the driver. According to Walking Eagle, Walking Eagle struggled with the driver for control of the firearm and it discharged, striking the victim in the head and killing him.
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 Federal Bureau of Investigation, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Walking Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on May 16, 2022, by U.S. District Judge Karen E. Schreier.
Gregory Kent Davis, age 62, was sentenced to 17 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Davis was indicted by a federal grand jury on December 7, 2021. He pled guilty on February 24, 2022.
The conviction stems from Davis failing to register as a sex offender as required by state law between June 22, 2021, and July 21, 2021. Davis left South Dakota on a bus for Pennsylvania without notifying officials in either location. He was apprehended a month later. Davis had previously been convicted of a sex offense in state court which requires him to register for 15 years from the time of his release.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Davis was immediately turned over to the custody of the U.S. Marshals Service.
Quebec Man Charged with Offering to Sell More Than 500,000 Stolen Gift Card Account Numbers over the InternetRead the Press Release
A federal grand jury recently returned a six-count indictment charging Richard Verret, age 40, of Quebec, Canada, with unauthorized solicitation of access devices and trafficking counterfeit access devices, the result of a multi-year investigation into Verret’s online criminal activity.
The indictment was filed under seal in Baton Rouge on March 22, 2022. On April 7, 2022, Verret was arrested at the Orlando International Airport after arriving in the United States from Canada. On April 8, 2022, Verret made his initial appearance in the United States District Court for the Middle District of Florida, where the court ordered him to remain in federal custody pending his appearance in the Middle District of Louisiana. On May 16, 2022, Verret made his first appearance in this district, where he remains in custody.
According to the indictment, Verret, also known as “Luxury187,” “Miami24k,” and other screen names, operated and controlled several websites, such as the “Lux Giftcards Shop” and “Miami’s Gift Card Shop,” through which he advertised the sale of gift cards for major restaurant chains, grocery stores, entertainment venues, and other retail business chains (collectively, the “businesses”). Many of the businesses whose gift cards were advertised on Verret’s websites had locations across Louisiana.
The indictment further alleges that Verret would obtain, by fraudulent methods and theft, large quantities of valid gift card account numbers. Because the account numbers could be loaded into mobile applications and scanned at store registers, used for online purchases, and/or re-programmed onto blank access devices, Verret and others could access the account balances and spend the funds without ever having actual, physical possession of the original, legitimate gift cards. Using various methods to conceal his identity and avoid detection, Verret would sell the account numbers over the internet, offering the numbers for sale at steep discounts. As the indictment alleges, Verret’s websites advertised that they offered gift cards to hundreds of different businesses and that the sites were adding more gift cards “every week.” As of late February 2022, one of the websites offered more than 550,000 gift cards to more than 500 different businesses. The total stored value of all of the fraudulently obtained accounts offered for sale was more than $22 million.
In connection with this case, the United States has seized two of the domain names used by Verret in furtherance of his criminal activity, “www.miami24k.com” and "www.miami.gift". Federal law enforcement officials recently served the domain registrars with federal seizure warrants directing the registrars to lock the domain names, and to display a banner notification that the domains have been temporarily seized, pending further proceedings.
This matter is being investigated by the U.S. Department of Homeland Security and the Louisiana Attorney General’s Office, and the investigation has received substantial assistance from the U.S. Department of Justice’s Office of International Affairs, the Royal Canadian Mounted Police, and the Quebec Police Department. The matter is being prosecuted by Assistant United States Attorneys Alan A. Stevens, who also serves as Senior Litigation Counsel, and Brad Casey.
*NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Postal Service Employee Sentenced for Fraudulent ClaimsRead the Press Release
KANSAS CITY, Mo. – A Lee’s Summit, Mo., woman was sentenced in federal court today for fraudulently claiming reimbursements for travel expenses for her work for the U.S. Postal Service.
Monique S. Koger-Little, 48, was sentenced by U.S. District Judge Stephen R. Bough to one year and three months in federal prison without parole. The court also ordered Koger-Little to pay $29,892 in restitution to the U.S. Postal Service.
On Nov. 15, 2021, Koger-Little pleaded guilty to one count of stealing government money. Koger-Little was employed by the U.S. Postal Service from 2010 through 2019. As an engagement ambassador, she frequently traveled throughout the United States. According to court documents, her scheme began almost immediately upon her promotion to this position.
Koger-Little admitted that she received reimbursements for fraudulent travel expenses by submitting false reimbursement requests. For example, she received reimbursements after falsely claiming higher hotel rates than she was actually charged, for corporate housing that she did not use, and for mileage for driving her personal vehicle, although that travel never actually occurred and she was on vacation at the time.
According to court documents, approximately 36 fraudulent travel vouchers were submitted over almost 12 months. Koger-Little’s conduct included having family members’ travel expenses and personal rent expenses paid through Postal Service travel vouchers. She submitted fraudulent travel vouchers and received reimbursement for airline tickets issued to her husband, mother, and children, and for her daughter’s boyfriend. Koger-Little paid for her and her relatives’ airline tickets for a trip to Fort Lauderdale, Florida, in July 2019 through the submission of fraudulent travel vouchers. Koger-Little included personal rent expenses in her fraudulent travel vouchers. The investigation repeatedly found travel vouchers submitted that included hotel costs with no corresponding charge to that hotel on her government travel card billing statement. However, there were matching charges associated with the apartment complex where her son lived.
Koger-Little resigned from the Postal Service on Nov. 1, 2019, when she became aware of the federal investigation. After repeatedly being asked to return her government-issued cell phone and laptop computer, they were mailed to her manager several weeks later. The cell phone had been wiped clean of its contents and the hard drive of the laptop had been removed.
This case was prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the U.S. Postal Service, Office of Inspector General.
Pennsylvania Man Charged with $1.7 Million Paycheck Protection Program Loan Fraud SchemeRead the Press Release
NEWARK, N.J. – A Pennsylvania man was charged for his role in a scheme to fraudulently obtain over $1.7 million in federal Paycheck Protection Program (PPP) loans for himself and others, U.S. Attorney Philip R. Sellinger announced today.
Darryl Duanne Young, aka “Darryl Duanne Isom Young,” 59, of Kingston, Pennsylvania, is charged by complaint with one count of conspiracy to commit bank fraud, four counts of bank fraud, and two counts of money laundering. Young made his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was released on $150,000 unsecured bond.
According to documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The law authorized up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Young engaged in a scheme to illegally obtain, for himself and his conspirators, over $1.7 million in PPP loans through numerous misrepresentations to banks. Young submitted and directed others to submit fraudulent PPP loan applications. He submitted falsified tax documents and bank statements to a victim lender in support of PPP loan applications. He received over $230,000 in PPP loans for businesses he controlled and received a percentage of loan proceeds for assisting in submitting fraudulent applications on behalf of others.
The counts of conspiracy to commit bank fraud and bank fraud each carry a maximum penalty of 30 years in prison and a $1 million fine. The counts of money laundering each carry a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Jason J. Molina in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and David E. Dauenheimer of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Oshkosh Sex Offender Arrested for Attempting to Meet a 13 year-old for Sexual ActivityRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, announced that Kevin J. Mueller (age: 60) of Oshkosh, Wisconsin, was charged via a criminal complaint following his May 16, 2022, arrest by local and federal authorities. Mueller was arrested pursuant to Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. https://go.usa.gov/xueyn.
According to the complaint and supporting affidavit, Mueller began exchanging instant messages in early May with an individual whom he believed to be the parent of a 13-year-old girl living in Oshkosh, Wisconsin. Mueller expressed repeated interest in engaging in sexual activity with the 13-year-old. Mueller also sent pornographic images of himself which he wanted to be shared with the child.
In actuality, Mueller was communicating with an undercover law enforcement agent working as a part of Operation Kick Boxer. Mueller was arrested upon his arrival at the prearranged meeting spot in Winnebago County. Mueller is required to register as a sexual offender based on a 1989 First Degree Sexual Assault conviction in Milwaukee County.
Mueller faces charges of using a computer to attempt to persuade, induce, or entice a minor to engage in unlawful sexual activity, in violation of Title 18, United States Code, Section 2422(b), and for doing so as a lifetime sexual offender registrant, in violation of Title 18, United States Code, Section 2260A. He faces a mandatory minimum sentence of 10 years and up to a lifetime of imprisonment if convicted of the enticement charge. His status as a sexual offender registrant requires an additional mandatory sentence of ten year’s imprisonment which must be served consecutive to the enticement charge.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Ohio Woman Pleads Guilty to Violating the Lacey Act by Selling Marbled CrayfishRead the Press Release
An Ohio woman pleaded guilty to violating the Lacey Act for selling marbled crayfish (also known as self-cloning crayfish) in interstate commerce. Marbled crayfish were recently declared an injurious aquatic invasive species under Ohio law.
According to court documents, Allison Spaulding, 46, knowingly sold marbled crayfish, Procambarus virginalis, in interstate commerce in violation of Ohio law. The marbled crayfish is considered a serious threat to aquatic biodiversity because of its high reproductive rate and the need for only one individual to start a population.
The Ohio Division of Wildlife added the marbled crayfish to the injurious aquatic invasive species list for Ohio in January 2020. Between August 2020 and June 2021, Spaulding sold marbled crayfish in 96 different transactions to buyers in 36 states for approximately $2,812.
“The Department of Justice is committed to preventing the spread of invasive species,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Marbled crayfish pose a unique threat to America’s freshwater ecosystems and the defendant’s sales had the potential to introduce this dangerous species throughout the country. Such conduct will be prosecuted and punished.”
Spaulding pleaded guilty to a Lacey Act violation. She is scheduled to be sentenced in the coming months and faces a maximum penalty of one year in prison and up to $100,000 fine. A federal district court judge will determine any sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
The Ohio Division of Wildlife, in cooperation with the U.S. Fish and Wildlife Service, are investigating the case.
Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section, and Ohio Assistant Attorney General Sally Smetzer Montell are prosecuting the case.
Learn more about the marbled crayfish and why it is an injurious aquatic invasive species at https://ohiodnr.gov/static/documents/wildlife/fish-management/OSU_AIS_FieldGuide_Web.pdf.
Nicaraguan Man Who Used a Fraudulent Social Security Card and Permanent Resident Card Convicted after Jury TrialRead the Press Release
A man who used false identification documents and someone else’s social security number was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Fernando Moreno-Moreno, age 42, a citizen of Nicaragua illegally present in the United States and residing in Postville, Iowa, was convicted of one count of unlawful use of identification documents and one count of misuse of a social security number. The verdict was returned this afternoon following about one hour of jury deliberations.
The evidence at trial showed that Moreno-Moreno illegally entered the United States in November 2021, and after being released by immigration authorities, traveled to Iowa looking for work. Despite being told that he could not work in the United States without authorization, Moreno-Moreno used an alias name and a Social Security number assigned to another person when completing employment paperwork in January 2022 at a business in West Union, Iowa. Specifically, Moreno-Moreno presented the company with a fraudulent Lawful Permanent Resident card, also known as a “green card,” bearing the alias name and an Alien Registration number, to prove his authorization to work in the United States. The Alien Registration number on the green card was not assigned to anyone and was invalid. He also presented a Social Security card bearing his alias name but containing the social security number assigned to another person when completing state and federal tax forms. Moreno-Moreno admitted at trial that he used the alias when employed at the company between January and March 2022 but denied knowingly using another person’s identification documents.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Moreno-Moreno remains in custody of the United States Marshal pending sentencing. Moreno-Moreno faces a possible maximum sentence of 15 years’ imprisonment, a $500,000 fine, and six years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2010.
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New Orleans Man Sentenced for His Role in a Federal Drug ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on May 12, 2022, DEMARCO FORD, age 65, a resident of New Orleans, Louisiana was sentenced after pleading guilty to a two-count superseding bill of information. In Count 1, FORD was charged with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and 846. In Count 2, FORD was charged with use of communication facilities to further a drug trafficking crime in violation of Title 21, United States Code, Section 843(b).
According to court documents, FORD conspired with other members of a drug trafficking organization to distribute and possess with the intent to distribute crack cocaine. Additionally, FORD used a communication facility, the telephone, during the commission of a drug trafficking crime.
For Count 1, FORD received a term of imprisonment of 18 months, a period of supervised release of 3 years, and a mandatory special assessment fee of $100.00. For Count 2, FORD was sentenced to term of imprisonment of 18 months, a period of supervised release of 1 year, and a mandatory special assessment fee of $100.00. All terms of imprisonment and supervised release are to run concurrently.
The case was investigated by the Drug Enforcement Administration and Jefferson Parish Sheriff’s Office. This case was prosecuted by Brittany Reed, André Jones, and Melissa Bücher of the U.S. Attorney’s Office.
Mountain View Man Pleads Guilty to Murder in National ParkRead the Press Release
SPRINGFIELD, Mo. – A Mountain View, Mo., man has pleaded guilty in federal court to murdering his estranged wife during an argument when they met in a national park.
Dylan J. Hanger, 30, pleaded guilty before U.S. District Judge M. Douglas Harpool on May 10, 2022, to one count of murder in the second degree.
Hanger admitted that he met his estranged wife, Brittany Gorman, at the Buck Hollow Access Area, along the Jacks Fork River, within the Ozark National Scenic Riverways in Texas County, Mo., on May 20, 2020. An argument ensued, during which Hanger stabbed Gorman several times in the chest, which caused her death.
Under federal statutes, Hanger is subject to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Texas County, Mo., Sheriff’s Department, the National Park Service Investigative Services Branch, and the Missouri State Highway Patrol.
Mother and Daughter Team Charged in COVID-19 Related, Jailhouse Unemployment Insurance FraudRead the Press Release
FRESNO, Calif. — An indictment was unsealed today charging Makiah Miles, 29, of Compton, and Apryl Weston, 50, of Santa Maria, with conspiracy to commit mail fraud and identity theft for submitting fraudulent unemployment insurance claims to the California Employment Development Department (EDD) in the names of inmates, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Miles is an inmate at the Central California Women’s Facility in Chowchilla and Weston is her mother. From June through December 2020, they took advantage of changes made to the EDD’s eligibility criteria in response to the COVID-19 pandemic and submitted the fraudulent claims. Specifically, Miles obtained other inmates’ names, dates of birth, and social security numbers and sent that information to Weston to submit claims in those inmates’ identities as well as her own identity. The underlying applications contained several misrepresentations, including that Miles and the other inmates had been self-employed as accountants, beauty culturists, child care providers, cosmetologists, hairdressers, and other occupations, and that they recently became unemployed because of the COVID-19 pandemic. The claims were worth over $550,000. The defendants used the money to purchase handbags, jewelry, and televisions, among other items.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation’s Investigative Services Unit, and the EDD. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and $250,000 fine for the conspiracy charge and a mandatory, two-year consecutive sentence and additional $250,000 for the aggravated identity theft charges. Any sentence, however, will 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Monmouth County Man Admits Making Threatening Communications and Calling in False Bomb ThreatsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted making threatening telephone and email communications to New Jersey state officials, judges, law enforcement officers, and attorneys, and phoning in false bomb threats to local and state government offices, a police department, two law firms and a commercial establishment, U.S. Attorney Philip R. Sellinger announced.
Eric G. Hafner, 31, formerly of Monmouth County, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp to one count of making threating communications in interstate or foreign commerce with intent to extort, one count of making threatening communications in interstate or foreign commerce, and one count of conveying false information concerning the use of an explosive device.
According to documents filed in this case and statements made in court:
Between July 2016 and May 2018, while residing outside the United States, Hafner communicated threats to numerous individuals located in and around Monmouth County and elsewhere. The victims were elected officials, judges, police officers, attorneys, and their families. Hafner sought to extort $350,000 from some of his victims. During this time period, Hafner also made false bomb threats to an elected official’s office, a county courthouse, a police department, two law firms, and a commercial establishment.
The count of making threating communications in interstate or foreign commerce with intent to extort carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conveying false information concerning the use of an explosive device carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The count of making threatening communications in interstate or foreign commerce carries a maximum penalty of five years in prison and a $250,000 fine. Hafner’s sentencing is scheduled for Sept. 21, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Acting Special Agent in Charge Michael Messenger, with the investigation leading to today’s guilty plea. He also thanked detectives of the Monmouth County Prosecutor’s Office; officers of the Monmouth County Sheriff’s Office; New Jersey State Police; the Bradley Beach Police Department; Fairhaven Police Department; Aberdeen Police Department; the Hazlet Police Department; Shrewsbury Police Department; the Red Bank Police Department; the Freehold Township Police Department; the Middletown Police Department; the Neptune Township Police Department; the Oceanport Police Department; the Deal Police Department; and the Manasquan Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Ian D. Brater and R. Joseph Gribko of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Midlothian Woman Pleads Guilty to $1.2 M COVID-19 Fraud SchemeRead the Press Release
RICHMOND, Va. – A Midlothian woman pleaded guilty today to defrauding the Pandemic Unemployment Assistance (PUA) Program, the Paycheck Protection Program (PPP), and the Economic Injury Disaster Loan (EIDL) program, using victims’ personal identifying information that she obtained from her state government employment.
According to court documents, in the first of three fraud schemes, from May 2020 to August 2021, Sadie Mitchell, 30, with the assistance of her co-conspirator, executed a scheme to defraud the Virginia Employment Commission by filing at least 20 fraudulent unemployment applications using the personal identifying information of inmates. Among the false information included in these applications were false physical addresses, false last employers, and a false certification that the inmates were ready, willing, and able to work in the event employment became available. The conspirators further defrauded the Virginia Employment Commission by filing at least 30 fraudulent applications in the names of other individuals whose personal identifying information was obtained, in part, by Mitchell querying a government database she had access to as an employee of the Virginia Motor Vehicle Dealer Board. Through this fraud scheme, the conspirators obtained approximately $1 million in PUA and Unemployment Insurance benefits.
Additionally, from June 2020 to June 2021, Mitchell devised and executed a scheme to defraud the PPP and EIDL programs. The defendant submitted 5 PPP applications to a financial institution, each containing false statements, false representations, or false certifications. For instance, these applications contained false and fabricated gross figures and false certifications that the businesses were in operation on February 15, 2020. The defendant further executed a scheme to defraud the EIDL program, which was intended to give forgivable loans to small businesses. Mitchell submitted several fraudulent EIDL applications to the Small Business Administration for businesses that had no customers, employees, or business activity, and in those applications, she made false statements, representations, and false certifications.
Mitchell pleaded guilty to conspiracy to commit mail fraud and wire fraud and is scheduled to be sentenced on August 23. She faces a maximum penalty of 30 years in prison. 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.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division; Troy Springer, Acting Special Agent in Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Joseph V. Cuffari, Inspector General for the Department of Homeland Security, made the announcement after U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Significant assistance was provided by the Virginia Department of Motor Vehicle, Virginia Employment Commission and the Virginia Department of Corrections.
Assistant U.S. Attorneys Kashan K. Pathan and Carla Jordan-Detamore are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-44.
Michigan man indicted on meth chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bacarre H. Curtis, of Eastpointe, Michigan, was indicted today on drug and firearms charges, United States Attorney William Ihlenfeld announced.
Curtis, also known as “TJ,” 21, was indicted on one count of “Conspiracy to Distribute Fifty Grams or More of Methamphetamine,” three counts of “Distribution of Fifty Grams or More of Methamphetamine,” one count of “Possession with Intent to Fifty Grams or More of Distribute Methamphetamine,” and one count of “Possession of Firearm During and in Relation to a Drug Trafficking Crime.” Curtis is accused of trafficking more than 50 grams of methamphetamine, also known as “crystal” and “ice,” while carrying a 9mm Glock pistol in January 2022 in Harrison County.
Curtis faces up to 20 years of incarceration and a fine of up to $1,000,000 for the conspiracy charge, faces at least 10 years and up to life for each of the remaining drug charges, and faces at least five years and up to life incarceration for the firearms charge. 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 Christopher L. Baer is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative; the DEA; ATF; and the Harrison County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican Nationals Sentenced for Methamphetamine Trafficking in Stanislaus CountyRead the Press Release
FRESNO, Calif. — Antonio Ochoa Mejia, 50, a Mexican national residing in Hughson, was sentenced today by U.S. District Judge Dale A. Drozd to 10 years in prison for conspiracy to distribute and possess with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
Co-defendant Jorge Armando Gonzalez Martinez, 41, a Mexican national residing in Hughson, was previously sentenced to four years and six months in prison and co-defendant Ramon Ortega, 36, a Mexican national residing in Willows, was sentenced to three years and two months in prison.
According to court documents, on April 18, 2019, Mejia and Ortega sold 1 kilogram of methamphetamine for $4,500 during an undercover transaction in Empire. On May 14, 2019, Mejia sold 2 kilograms of methamphetamine during an undercover transaction in Ceres. On May 30, 2019, Mejia and Martinez were arrested in Ceres after attempting to deliver 10 kilograms of methamphetamine during an undercover transaction.
This case was the product of an investigation by the Federal Bureau of Investigation and the San Joaquin Metropolitan Narcotics Task Force. Assistant U.S. Attorney Jessica A. Massey prosecuted the case.
Mejia and Ortega are currently in federal custody. Martinez has been ordered to surrender to the Bureau of Prisons on July 7, 2022.
Mexican Man Sentenced to 72 Months for Identity Theft and Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARTIN CORTEZ-BALDERAS (“CORTEZ”), age 39, a citizen of Mexico, was sentenced today after previously pleading guilty to Identity Theft and Violations of the Federal Gun Control Act.
According to court documents, in November 2020, law enforcement agents received information that CORTEZ may be in the country illegally and using identification information belonging to another person. As agents were preparing to execute a search warrant on November 9, 2020, they observed CORTEZ exit his residence and enter his vehicle. A traffic stop was performed and a search warrant was obtained for the vehicle. This search yielded a Ruger Model P97DC, .45 caliber semi-automatic pistol, and four rounds of .45 caliber Winchester ammunition. Records also determined that CORTEZ was a convicted felon, prohibited from possessing a firearm and ammunition. In 2004, CORTEZ was convicted in United States District Court for the Southern District of Texas, of Importing 24.30 Kilograms of Marijuana into the United States.
During a search of his residence, a Louisiana Identification card was found in the name of another person, which CORTEZ represented to be his own. The renewal of the card required CORTEZ to attest via electronic signature that he was in fact the person that he claimed to be by using that person’s name and date of birth. The electronic renewal was transmitted in interstate commerce to the Louisiana Department of Public Safety, and violated Louisiana’s Forgery statute.
U.S. District Court Judge Jay C. Zainey sentenced CORTEZ to 72 months in the custody of the Bureau of Prisons, to be followed by three (3) years of supervised release. He was also ordered to pay a $200 special assessment fee. Following the completion of his sentence, CORTEZ will be surrendered to the custody of U.S. Immigration and Custom Enforcement for removal proceedings.
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.
U.S. Attorney Evans praised the work of Immigration and Customs Enforcement, Enforcement and Removal Operations, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Methamphetamine Trafficker Is Sentenced to More Than 19 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Timothy Wayne Bates, 51, of Dallas, N.C., to 235 months in prison and five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and court proceedings, in August 2020, Bates possessed methamphetamine on three occasions. On August 5, 2020, law enforcement encountered Bates at the parking lot of a hotel in Gaston County, where Bates was found to be in possession of methamphetamine and a firearm. On the same day, law enforcement also recovered additional methamphetamine and $3,500 in cash Bates had attempted to discard near the hotel. On August 14, 2020, law enforcement conducted a traffic stop of the vehicle Bates was driving. Over the course of the stop, law enforcement seized methamphetamine and over $4,000 in cash. Then on August 19, 2020, law enforcement arrested Bates at a hotel in Pineville, North Carolina, after recovering methamphetamine and more than $1,900 in cash.
On June 17, 2021, Bates pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and three counts of possession with intent to distribute methamphetamine. At today’s sentencing hearing, Bates’s sentence was enhanced due to his multiple prior convictions of felony Breaking and Entering, Embezzlement, Grand Larceny, Possession of Methamphetamine, Receiving Stolen Goods, and Possession with Intent to Distribute Methamphetamine.
This case is the result of the Organized Crime Drug Enforcement Task Force (OCDETF) operation, which has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 87 kilograms of narcotics, including over 24 kilograms of fentanyl, 66 firearms, more than $385,000 in cash, and over $800,000 in other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, the Huntersville Police Department, the Gastonia Police Department, and the Dallas Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Massachusetts Woman Sentenced to 10 Years for Methamphetamine Trafficking ChargesRead the Press Release
BANGOR, Maine: A Brighton, Massachusetts woman was sentenced in federal court today for conspiracy to distribute and possess with the intent to distribute methamphetamine, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Kimberly Tompkins, 52, to 10 years in prison and five years of supervised release. Tompkins pleaded guilty in November 2021.
According to court records, between January 2017 and August 2018, Tompkins and other members of the conspiracy distributed large quantities of methamphetamine in northern Maine. Tompkins coordinated multi-pound shipments of methamphetamine from Arizona to conspirators who distributed it in Aroostook County. Tompkins also sent thousands of dollars in cash to the out-of-state source to supply the drug trafficking enterprise.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Massachusetts Woman Sentenced to 10 Years for Methamphetamine Trafficking ChargesRead the Press Release
BANGOR, Maine: A Brighton, Massachusetts woman was sentenced in federal court today for conspiracy to distribute and possess with the intent to distribute methamphetamine, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Kimberly Tompkins, 52, to 10 years in prison and five years of supervised release. Tompkins pleaded guilty in November 2021.
According to court records, between January 2017 and August 2018, Tompkins and other members of the conspiracy distributed large quantities of methamphetamine in northern Maine. Tompkins coordinated multi-pound shipments of methamphetamine from Arizona to conspirators who distributed it in Aroostook County. Tompkins also sent thousands of dollars in cash to the out-of-state source to supply the drug trafficking enterprise.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.