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9 October 2024
Las Vegas Man Indicted for Cyberstalking via Social MediaRead the Press Release
LAS VEGAS – A Las Vegas resident made his initial appearance Tuesday for allegedly sending thousands of messages, including threatening messages, via Instagram to two employees of the University of Texas at Austin.
According to allegations contained in the indictment, beginning on or about June 6, 2024 to September 16, 2024, Brian Patrick Solomon, 38, sent direct messages threatening to injure two high level employees of the school. In May and June of 2024, Solomon requested a total of $450 via CashApp from a victim. A records check of Solomon revealed that on July 26, 2023, he was arrested in Austin for burglary of vehicle and criminal mischief; and on February 27, 2024,
Solomon was arrested in Nevada for stalking. As a result, a protection order was entered against Solomon. In July 2024, one victim attended the ESPYs and was scheduled for a speaking engagement. Solomon communicated to the victim that he had purchased a ticket for the event. While the event revoked his ticket due to safety concerns, the victim paid out of pocket to hire security.
On September 16, 2024, the FBI arrested Solomon. After he was advised of his Miranda rights, Solomon admitted that he used multiple Instagram accounts to send a few thousand direct messages to the victim and that he had become angry with her. Additionally, Solomon admitted he had requested money from the victim to travel to the victim, and he had previously traveled via airplane to Austin.
A jury trial has been scheduled for December 17, 2024, before United States District Judge Jennifer A. Dorsey. Solomon is charged with one count of interstate communications with threat to injure and one count of cyberstalking. If convicted, he faces the maximum statutory penalty of five years in prison.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Division made the announcement.
This case was investigated by the FBI with assistance from the University of Texas Police Department. Assistant United States Attorney Courtney Strange is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Large-Scale Meth Trafficker Sentenced to 25 Years in PrisonRead the Press Release
ATHENS, Ga. – A large-scale methamphetamine trafficker was sentenced to serve 25 years in prison resulting from an investigation into fentanyl and methamphetamine distribution in the Middle District of Georgia.
Victor Uriel Diego Estrada, 31, of Michoacan, Mexico, was sentenced to serve 300 months in prison to be followed by five years of supervised release by U.S. District Judge Tilman E. “Tripp” Self, III on Oct. 7 after he previously pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession of methamphetamine with intent to distribute on Dec. 12, 2023. There is no parole in the federal system.
“Victor Estrada produced and distributed a massive amount of methamphetamine and deadly quantities of a potentially lethal fentanyl mixture,” said U.S. Attorney Peter D. Leary. “Alongside our law enforcement partners, we remain focused on disrupting dangerous criminal activity and holding those offenders accountable to make our communities safer and stronger.”
“The investigation and subsequent conviction of this drug dealer demonstrates the DEA’s commitment to fight the drug cartels who have no regard for the citizens of our community,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
According to court documents and statements referenced in court, the DEA began investigating Estrada’s illegal drug activity in Walton County, Georgia, after developing information from a confidential source (CS) who had ties to a Mexico-based narcotics broker with access to sources of supply of cocaine and methamphetamine in north Georgia. Under surveillance, the CS purchased one kilogram of methamphetamine from Estrada on Nov. 8, 2023, at a location in Norcross, Georgia. Afterward, authorities observed Estrada visit three separate Walmart stores to purchase hard chest coolers, commonly used in clandestine methamphetamine laboratories during and after the acetone drying process. DEA searched Estrada’s Walton County home on Nov. 14, 2023. Agents found 21 individual packages of methamphetamine, vacuum-sealed bags, digital scales and other equipment commonly used in the process of converting liquid methamphetamine into a crystal or solid form. Additionally, agents located two cell phones in the residence. The packages held 21,087.5 grams of methamphetamine with a 99% purity.
A search warrant executed on Estrada’s cell phones revealed a conversation with a person named “SINSO” which discussed converting liquid methamphetamine into crystal methamphetamine for the purpose of distribution. Agents also found information about other methamphetamine conversation lab locations tied to Estrada and subsequently executed a search warrant at a home in Forest Park, Georgia. Agents found approximately 180 kilograms of crystal methamphetamine and a quantity of liquid methamphetamine. Additionally, four kilograms of a cocaine and fentanyl mixture was found in a cooler completely buried underground by the backdoor of the residence. Agents located equipment commonly used in methamphetamine conversion laboratories, including propane burners, fuel, strainers and protective masks. A loaded 9mm handgun with a spare 9mm magazine was found in a bedroom.
The case was investigated by the Drug Enforcement Administration (DEA).
Assistant U.S. Attorney Mike Morrison prosecuted the case for the Government.
Justice Department, Federal Trade Commission and Consumer Financial Protection Bureau Warn Consumers About Potential Scams and Price Gouging in the Wake of Hurricanes and other Natural DisastersRead the Press Release
As the nation braces for another major hurricane, the Justice Department, along with the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB), is warning consumers about those looking to take advantage of natural disasters by engaging in potential fraud, price gouging and collusive schemes.
Scammers quickly exploit weather emergencies and take advantage of people trying to recover or donate to disaster victims. Weather emergencies provide disruptions to the supply chain, which can also provide opportunities for wrongdoers to engage in collusive schemes that inflate prices charged to customers who are under extreme stress and therefore unable to fight back against collusive or anticompetitive prices.
“Companies are on notice: do not use the hurricane as an excuse to exploit people through illegal behavior,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will act quickly to root out anticompetitive behavior and use every tool available to hold wrongdoers accountable.”
“Wrongdoers are looking to exploit opportunities and victims of natural disasters for their own personal gain,” said U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana, who is also Executive Director of the National Center for Disaster Fraud (NCDF). “The Justice Department, including the NCDF, stands ready to prevent these bad actors from fraudulent activity. We are here to support victims of natural disasters during these difficult times together with our state, local and federal partners, and agencies. In an effort to assist the most vulnerable neighbors who are susceptible to these types of fraudulent schemes, we encourage you to be diligent in reporting suspicious activity on their behalf.”
“As Americans seek safety from natural disasters, we’re hearing troubling reports of price gouging for essentials that are necessary for people to get out of harm’s way — from hotels to groceries to gas,” said FTC Chair Lina M. Khan. “No American should have to worry about paying grossly inflated prices when fleeing a hurricane. In partnership with state enforcers, the FTC will keep fighting to ensure that Americans can get the relief they need without being ripped off by bad actors exploiting a crisis.”
“Price gouging during a natural disaster is just plain wrong, and excessive price increases can be unfair under the law,” said CFPB Director Rohit Chopra. “The CFPB will be on the lookout for financial companies that take advantage of natural disasters to rip people off.”
Possible types of natural disaster scams include:
- Fraudulent charities soliciting donations for disaster victims that often imitate the names of charities linked to the disaster;
- Scammers impersonating government officials, offering disaster relief in exchange for personal information or money;
- Scammers promoting non-existent businesses or investment opportunities related to disaster recovery, such as rebuilding or flood-proofing;
- Price gouging for essential goods and services needed by disaster victims; and
- Businesses using supply chain disruptions as a cover for collusion to overcharge customers.
To avoid scams and frauds while you’re recovering from a hurricane or another natural disaster, remember only scammers will insist you pay for services by wire transfer, gift card, payment app, cryptocurrency or in cash. Avoid anyone who promises they can help you qualify for relief for a fee. That’s a scam. You are not required to pay a fee to get disaster relief. Never sign your insurance check over to someone else. Be sure to research contractors and get estimates from more than one before signing a contract for work. Get a written contract for repairs and read it carefully before signing it.
The Justice Department established the NCDF in the wake of Hurricane Katrina to deter, investigate and prosecute fraud in the wake of disasters. More than 50 federal, state and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, seven days a week.
Consumers and businesses with concerns about potentially anticompetitive conduct like price-fixing, bid-rigging, or customer-allocation can report those concerns to the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or by visiting www.justice.gov/atr/report-violations.
Justice Department Obtains Injunction to Prevent California Company from Manufacturing and Distributing Adulterated Food Following Listeria OutbreakRead the Press Release
A federal court yesterday enjoined a California company from manufacturing and distributing adulterated food products following a listeria outbreak linked to multiple hospitalizations and two deaths.
In a civil complaint filed on Sept. 27 in the U.S. District Court for the Eastern District of California, the United States alleged that Rizo Lopez Foods Inc., along with its president, chief executive officer and co-owner, Edwin Rizo, and its chief financial officer, secretary and co-owner Tomas Rizo, violated the Federal Food, Drug and Cosmetic Act (FDCA) at the company’s facility in Modesto, California, by manufacturing and distributing adulterated food products. Rizo Lopez Foods produced cotija cheese and other cheeses, yogurt, sour cream and other foods sold under the brand names Tio Francisco, Don Francisco, Rizo Bros, Rio Grande, Food City, El Huache, La Ordena, San Carlos, Campesino, Santa Maria, Dos Ranchitos, Casa Cardenas and 365 Whole Foods Market.
The complaint further alleged that, in January, Hawaiian state health officials detected Listeria monocytogenes (L. mono), the bacterial pathogen that can cause listeriosis, in cheese made by the defendants. The government further alleged that during a subsequent inspection of the defendant’s facility, the Food and Drug Administration (FDA) found L. mono in two locations as well as various insanitary conditions. The complaint alleged that a genetic analysis matched the L. mono strain collected in Hawaii to the strain from defendants’ facility, as well as to L. mono samples from patients sickened as early as 2014 during a years-long listeriosis outbreak. An investigation by the Centers for Disease Control identified 26 cases of listeriosis in 11 states linked to the same L. mono strain. The CDC reported that 23 individuals were hospitalized as a result of the outbreak, including two patients who died. In February, Rizo Lopez recalled all cheese and dairy products produced at their facility.
“Food manufacturers have an important responsibility to ensure the safety of their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department and FDA will continue to work closely on enforcement actions against food manufacturers who fail to meet their obligations and put the health of their customers at risk.”
“Food producers in the Eastern District of California feed the nation,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Our office is committed to assuring compliance with the FDCA throughout the District.”
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The injunction entered by the court permanently enjoins the defendants from violating the FDCA. As part of the settlement, the defendants represented that they have discontinued all operations related to preparing and processing food. Under the permanent injunction, the defendants must notify FDA in advance of resuming such operations, comply with specific remedial measures set forth in the injunction and allow FDA to inspect their facility, including the buildings, sanitation-related systems, equipment, utensils, all articles of food and relevant records.
Trial Attorney David G. Crockett Jr. and Senior Trial Attorney James Nelson of the Justice Department’s Civil Division prosecuted this case, with assistance from Assistant Chief Counsel for Enforcement Lauren Fash of the FDA’s Office of Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the consent decree announced today are allegations only. There has been no determination of liability.
Consent Decree
Justice Department Obtains Injunction to Prevent California Company from Manufacturing and Distributing Adulterated Food Following Listeria OutbreakRead the Press Release
SACRAMENTO, Calif. – A federal court yesterday enjoined a California company from manufacturing and distributing adulterated food products following a listeria outbreak linked to multiple hospitalizations and two deaths, the Justice Department announced.
In a civil complaint filed on Sept. 27, 2024, in the U.S. District Court for the Eastern District of California, the United States alleged that Rizo Lopez Foods Inc., along with its President, Chief Executive Officer and co-owner, Edwin Rizo, and its Chief Financial Officer, Secretary, and co‑owner Tomas Rizo, violated the federal Food, Drug and Cosmetic Act (FDCA) at the company’s facility in Modesto by manufacturing and distributing adulterated food products. Rizo Lopez Foods produced cotija cheese and other cheeses, yogurt, sour cream, and other foods sold under the brand names Tio Francisco, Don Francisco, Rizo Bros, Rio Grande, Food City, El Huache, La Ordena, San Carlos, Campesino, Santa Maria, Dos Ranchitos, Casa Cardenas, and 365 Whole Foods Market.
The complaint further alleged that, in January, Hawaiian state health officials detected Listeria monocytogenes (L. mono), the bacterial pathogen that can cause listeriosis, in cheese made by the defendants. The government further alleged that during a subsequent inspection of the defendant’s facility, the Food and Drug Administration (FDA) found L. mono in two locations as well as various insanitary conditions. The complaint alleged that a genetic analysis matched the L. mono strain collected in Hawaii to the strain from defendants’ facility, as well as to L. mono samples from patients sickened as early as 2014 during a years-long listeriosis outbreak. An investigation by the Centers for Disease Control identified 26 cases of listeriosis in 11 states linked to the same L. mono strain. The CDC reported that 23 individuals were hospitalized as a result of the outbreak, including two patients who died. In February, Rizo Lopez recalled all cheese and dairy products produced at their facility.
“Food producers in the Eastern District of California feed the nation,” said U.S. Attorney Phillip A. Talbert. “Our office is committed to assuring compliance with the FDCA throughout the District.”
“Food manufacturers have an important responsibility to ensure the safety of their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department and FDA will continue to work closely on enforcement actions against food manufacturers who fail to meet their obligations and put the health of their customers at risk.”
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The injunction entered by the court permanently enjoins the defendants from violating the FDCA. As part of the settlement, the defendants represented that they have discontinued all operations related to preparing and processing food. Under the permanent injunction, the defendants must notify FDA in advance of resuming such operations, comply with specific remedial measures set forth in the injunction, and allow FDA to inspect their facility, including the buildings, sanitation-related systems, equipment, utensils, all articles of food, and relevant records.
Trial Attorney David G. Crockett Jr. and Senior Trial Attorney James Nelson prosecuted this case with assistance from Assistant Chief Counsel for Enforcement Lauren Fash of the FDA’s Office of Chief Counsel. Assistant U.S. Attorney Emilia Morris handled the case in the Eastern District of California.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.
Jamestown felon going to prison on gun chargeRead the Press Release
BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that Steven Glover, Sr., 41, of Jamestown, NY, who was convicted of being a felon in possession of a firearm, was sentenced to serve 41 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that on the morning of December 14, 2022, a Jamestown Police officer observed Glover in a vehicle. The officer knew that Glover was suspended from driving. The officer stopped the vehicle and made contact with Glover, who immediately advised that he had a pipe on his person. Glover then handed over a glass pipe that contained what appeared to be methamphetamine residue inside. Glover was detained and a search of the vehicle recovered a digital scale with white crystal residue and a pistol. Glover was charged in New York State Court and released on bail. In 2019, Glover was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The sentencing is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
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Ivanhoe Man Pleads Guilty to Drug, Gun ChargesRead the Press Release
ABINGDON, Va. – A previously convicted felon who illegally possessed a firearm and possessed distribution quantities of methamphetamine pled guilty recently to a pair of federal charges.
Troy Alexander Stamper III, 34, of Ivanhoe, Virginia, pled guilty last week to one count of possessing with the intent to distribute 50 grams or more of methamphetamine and one count of possession of a firearm by a previously convicted felon.
According to court documents, on June 23, 2023 the Grayson County Sheriff’s Office responded to a residence in Fries, Virginia to locate a wanted subject. Upon arriving at the residence, a witness reported that the wanted subject, and Stamper, fled upon seeing sheriff’s deputies arriving. In addition, the witness further reported that Stamper was in possession of a pistol.
The wanted subject was found hiding underneath the residence and stated that Stamper had stashed a duffel bag and a pistol underneath the porch of the residence. Deputies located the duffel bag, which contained a loaded, semiautomatic 9 mm pistol, 87 grams of methamphetamine, .873 grams of fentanyl, and 4 oxycodone tablets.
Stamper was apprehended a short time later and admitted that the pistol and bag containing the drugs belonged to him.
United States Attorney Christopher R. Kavanaugh and James VanVliet, Acting Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Grayson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case.
Assistant U.S. Attorney Zachary T. Lee is prosecuting the case.
Huntingdon County Man Sentenced to 10 Years in Prison for Drug TraffickingRead the Press Release
HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Scott Douglas Moyer, age 49, of Huntingdon County, Pennsylvania, was sentenced on October 7, 2024, to 10 years in prison by United States District Court Judge Christopher C. Conner for drug offenses.
According to United States Attorney Gerard M. Karam, Moyer was sentenced for trafficking methamphetamine from his home between October 2020 and February 2021. Previously, Moyer entered a guilty plea to drug trafficking charges where he admitted that on multiple occasions he distributed methamphetamine, which led police to search his Union Township home on February 1, 2021. Police found close to kilogram of methamphetamine and 17 firearms at his home.
When imposing sentence, Judge Conner noted the significant amount of drugs distributed and seized, as well as the presence of weapons at his home.
The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pennsylvania State Police. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Holly Man Sentenced to 85 Years for Sexually Exploiting ChildrenRead the Press Release
DETROIT –A Holly man was sentenced yesterday to 85 years in federal prison for sexually exploiting children, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Federal Bureau of Investigation, Detroit.
In addition to the 85-year sentence, United States District Court Kay F. Behm sentenced Jeremy McCallum, 48, to 15 years of supervised release upon his release from prison.
According to court documents, on January 31, 2020, law enforcement searched McCallum’s home for child sexually abusive material. The search resulted in the recovery of hard copies and digital files depicting years-long, horrific sexual abuse of three minor children by McCallum. McCallum abused one minor female for the better part of a decade, documenting his abuse of her on VHS tape, on his cell phone, and in Polaroid pictures. He abused another minor female when she was an infant, recording his sexual abuse of her on VHS tape and on his cell phone. Finally, on a VHS tape, an FBI agent located an instance of sexual abuse that McCallum committed against a minor male.
Following years of litigation, McCallum pleaded guilty, on June 18, 2024, to all the charges in the indictment, including ten counts of the sexual exploitation of a child and one count of possession of child pornography.
“This defendant committed monstrous crimes. This prosecution and sentence should send a strong message to child predators: you will suffer severe consequences if you harm our children,” said U.S. Attorney Ison.
"The despicable acts of sexual exploitation, especially against children, are amongst the most horrific crimes investigated by our office," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The sentencing of Jeremy McCallum is a direct result of the collaborative efforts between the Michigan State Police and the FBI, Oakland County Resident Agency. This sentencing sends a clear and stern warning to those who believe they can prey on our most vulnerable population and evade justice. The successful prosecution by the United States Attorney's Office of Eastern Michigan is a crucial step in the healing process for those victimized by Mr. McCallum's deplorable and heinous actions."
This case was investigated by the FBI and the Michigan State Police. The case was prosecuted by Assistant U.S. Attorneys Christopher Rawsthorne and Tara Hindelang.
Guilford Business Owner Sentenced to Prison for Tax OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHELLE ANN GILSON, 38, of Guilford, was sentenced today by U.S. District Judge Vernon D. Oliver in Hartford to 19 months of imprisonment, followed by three years of supervised release, for failing to pay more than a million dollars in business payroll taxes.
According to court documents and statements made in court, Gilson co-owned and co-operated B&M Package Solutions, Inc. and formerly owned and operated Epic Empirez, Inc., both Guilford-based package delivery companies. As co-owner, Gilson was responsible for company books, payroll, and invoices, and for collecting and paying over certain federal taxes from her employees, namely federal income taxes and Federal Insurance Contribution Act (“FICA”) taxes, which include Medicare and Social Security taxes. She was also responsible for ensuring that B&M Package Solutions and Epic Empirez, as employers, paid their own share of FICA taxes.
An investigation revealed that, for multiple quarters during the 2017 through 2022 tax years, Gilson failed to report employees’ federal income and FICA taxes, and failed to pay over withheld amounts and the employers’ share of FICA taxes. During this time, Gilson paid more than $600,000 in mortgage payments and property improvements to her Guilford home, and made approximately $140,000 in payments to casino resorts.
Judge Oliver ordered Gilson to pay the IRS restitution of $1,407,831.16.
In 2020, Gilson applied for a government loan through the Paycheck Protection Program (PPP), which was authorized by Congress as part of the March 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. As part of the PPP application, Gilson attested that B&M Package Solutions paid payroll taxes for its employees. In July 2020, Gilson received $250,000 in PPP funds. The PPP loan was subsequently forgiven.
On July 18, 2024, Gilson pleaded guilty to willful failure to pay over withholding taxes.
Gilson, who is released on bond, is required to report to prison on December 4.
This matter was investigated by Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Elena L. Coronado.
Guatemalan Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
ALBANY, NEW YORK – Nelson Moran, age 31, a citizen of Guatemala, pled guilty today to conspiring to distribute and possess with intent to distribute methamphetamine.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Moran admitted that on July 31, 2024, he agreed to deliver a package of methamphetamine in exchange for $13,700. Moran further admitted that he delivered the package in Saratoga Springs, New York, and tried to collect the $13,700 before he was arrested. The package contained about 200 grams of methamphetamine.
At sentencing on February 11, 2025, Moran faces a maximum term of 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The DEA and Saratoga Springs Police Department investigated the case. Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.
Formerly Married Couple Sentenced for Multi-Million Dollar Fraud SchemesRead the Press Release
Orlando, FL – United States District Judge Paul G. Byron has sentenced Nikesh Ajay Patel (40, formerly of Windermere), and his ex-wife, Trisha Patel, (41, Orlando), for their roles in a financial scheme defrauding the U.S. Department of Agriculture (USDA) and others. On October 8, 2024, Nikesh Patel was sentenced to 27 years in federal prison, which must run consecutive to a 25-year term he is already serving from the Northern District of Illinois. Trisha Patel was sentenced on September 18, 2024, to 51 months in federal prison. Both are required to pay restitution to the USDA and four other financial institutions.
According to court documents, Nikesh Patel was charged in 2014 by the U.S. Attorney’s Office in the Northern District of Illinois for a $179 million fraud scheme. He was arrested and released on bond. For the next several years, Nikesh Patel claimed that he was cooperating with authorities and using his business skills to recover funds to repay the victims. In fact, Nikesh Patel had devised a new scheme against the USDA that netted him over $19 million. Nikesh Patel was planning to flee to Ecuador on a private jet and avoid sentencing in the Chicago case. Instead, FBI agents arrested Nikesh Patel at the Kissimmee airport on January 6, 2018, and arrested him for attempting to abscond. Nikesh Patel was subsequently returned to Chicago, where he was sentenced to 25 years in federal prison on June 6, 2018.
Thereafter, on December 18, 2019, a federal grand jury in Orlando returned a 13-count indictment against Nikesh Patel for stealing $19 million while he was on federal pretrial release in the Chicago case. On February 28, 2023, Patel pleaded guilty as charged to all counts in that indictment: one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit money laundering, and eight counts of money laundering.
In the 2019 case, Nikesh Patel fabricated fraudulent loan documents and used a fictitious identity to perpetrate his conspiracy and scheme. He then applied to the USDA to guarantee the fake loans as part of their Business and Industry Guaranteed Loan Program. Once the USDA agreed to guarantee the loans, Nikesh Patel sold the guaranteed portion to the Federal Agricultural Mortgage Corporation (Farmer Mac) and received $19,342,392. The FBI was able to recover $11,321,931 and Nikesh Patel was ordered to pay the remaining portion as restitution to Farmer Mac.
While Nikesh Patel was in federal custody for the 2019 case, he recruited Trisha Patel (his wife at the time) to perpetrate a third financial scheme. Between January 2021 and December 2023, Nikesh and Trisha Patel devised a more sophisticated scheme utilizing a commercial pump manufacturer in Houston, Texas. At the direction of Nikesh Patel, Trisha pretended to be a senior representative of the company and falsely claimed to USDA that they wanted to expand their business in rural Puerto Rico. The Patels then created a fake lender to pretend that it was loaning $8,540,000 to the business for the expansion. USDA guaranteed 80% of the fake loan, and the Patels then sold that guarantee to financial institutions and received $7,446,880. The FBI was able to recover $74,545 in currency and a 2022 BMW model X7. The defendants were ordered to pay the remaining portion to USDA and four other financial institutions as restitution.
For the third scheme, Trisha Patel and Nikesh Patel each pleaded guilty to an Information charging one count of conspiracy to commit wire fraud on May 21, 2024, and May 22, 2024, respectively.
These cases were investigated by the Federal Bureau of Investigation and the United States Department of Agriculture - Office of Inspector General. They were prosecuted by Assistant United States Attorney Michael P. Felicetta and United States Attorney Roger B. Handberg.
Former Whitefish Housing Authority executive director admits embezzling at least $100,000Read the Press Release
MISSOULA — The former executive director of the Whitefish Housing Authority today admitted to embezzling at least $100,000 from the organization, which receives federal funds from the U.S. Department of Housing and Urban Development, U.S. Attorney Jesse Laslovich said.
The defendant, Dwarne Lamont Hawkins, 46, pleaded guilty to theft from organization receiving federal funding. Hawkins faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Feb. 7, 2025, before U.S. District Judge Donald W. Molloy. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Hawkins was released pending further proceedings.
In court documents, the government alleged that from about May 2023 to January 2024, while working as the executive director for the Whitefish Housing Authority, Hawkins embezzled from the organization. The Whitefish Housing Authority provides safe, decent and affordable housing options for low-income families in the Whitefish community and received approximately $468,616 in federal funds from HUD during the period of the indictment. Hawkins stole housing authority money by diverting and inflating payroll, fraudulently paying personal expenses with the Whitefish Housing Authority credit card and creating and paying fraudulent invoices to businesses over which he had control. As an example, in January 2024, Hawkins created bogus invoices from companies in which he held a controlling interest. Hawkins paid the invoices by fraudulently wiring money from the housing authority for $76,750 on Jan. 16, 2024 and for $23,250 on Jan. 22, 2024, for a total of $100,000. The investigation identified approximately $150,000 in restitution.
The U.S. Attorney’s Office is prosecuting the case. The U.S. Department of Housing and Urban Development, Office of Inspector General conducted the investigation.
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Former Postal Service Employee Sentenced for Stealing Money and Gift Cards from the MailRead the Press Release
INDIANAPOLIS—Justin Crain, 29, of Indianapolis, has been convicted of a felony and sentenced to 180 days of home detention, followed by three years of probation, 40 hours of community service, and a $5,000 fine after pleading guilty to mail theft by a U.S. Postal Service employee.
According to court documents, Justin Crain was employed as a U.S. Postal Service Mail Processing Clerk at its Indianapolis Processing and Distribution Center. The Postal Service’s Office of Inspector General began an investigation after it identified numerous mail items that passed through the Indianapolis processing center and had been opened before being delivered to their intended recipients. Video surveillance captured Crain opening numerous greeting cards and removing cash and gift cards from inside.
Over the course of just two hours, Crain was seen dozens of times rifling through mail items attempting to find cash. Crain was interviewed by investigators and admitted to stealing approximately $5,000 over the course of a few months.
“The vast majority of Postal employees are dedicated to their important mission and serve the public admirably, delivering people’s private, important, and sensitive items,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “The defendant was sworn and entrusted to protect the public’s mail, and instead abused his position to steal gifts meant to celebrate birthdays, holidays, and special events. Public service is a public trust, and government employees who use their positions to steal from the public will be identified and held accountable.”
The U.S. Postal Service Office of Inspector General investigated this case. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt.
U.S. Attorney Myers thanked Assistant U.S. Attorney Meredith Wood, who prosecuted this case.
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Former Minersville Police Officers Charged with Civil Rights and False Report OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Harry Brown, age 43, of Pottsville, Pennsylvania, and Richard Clink, age 50, of Minersville, Pennsylvania, were indicted by a federal grand jury for depriving the civil rights of another under the color of law and for making false reports.
According to United States Attorney Gerard M. Karam, the indictment alleges that on or about February 2, 2022, while acting under the color of law, Brown and Clink, aiding and abetting each other, did deprive an arrestee of his constitutional right to be free from the use of unreasonable force by a law enforcement officer. This use of unreasonable force led to bodily injury of the arrestee. The indictment further alleges that both Brown and Clink falsified, covered up, and made false entries into police reports documenting the arrest and their use of force during that arrest.
“Law enforcement officers take an oath to serve and protect the public, but as alleged in this case, these officers violated the constitutional rights of an individual and then attempted to cover up their actions,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. "FBI Philadelphia and our partners will continue to ensure the civil rights of all our citizens are protected, and that those who commit crimes will be held accountable."
The matter was investigated by the Minersville Police Department and the Federal Bureau of Investigation. Assistant United States Attorney James Buchanan is prosecuting the case with assistance from the Civil Rights Division.
The maximum penalty under federal law for these offenses is twenty years’ imprisonment and a fine of $250,000. 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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Former City of Pittsburgh Building Inspector Sentenced for Accepting Bribes from DeveloperRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 18 months of probation, including 90 days of home confinement, a $1,375 forfeiture, and a $1,500 fine on his conviction for bribery, United States Attorney Eric G. Olshan announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Walter Eiseman, 59.
According to information provided to the Court, Eiseman was a building inspector for the City of Pittsburgh, where he was responsible for performing inspections of properties that were the subject of applications for certificates of occupancy. In 2018, a developer was working on a project to redevelop a commercial building in downtown Pittsburgh as luxury apartments and hotel rooms. As part of the financing for the project, the developer sought a historical tax credit, which would only be granted after the developer obtained a temporary certificate of occupancy for one of the project’s floors by the end of December 2018. As part of his guilty plea, Eiseman admitted performing inspections on two floors of the project during the month of December, which resulted in a temporary certificate of occupancy being issued. In return for such official action, Eiseman accepted home appliances from the developer, which were delivered in early January 2019. Eiseman also admitted that he solicited a set of kitchen cabinets from the developer, which were ordered but ultimately not delivered to Eiseman’s residence.
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
U.S. Attorney Olshan commended the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Eiseman.
Former Arvin High School Employee Sentenced for Explosives Conspiracy and Making False Statements to FBIRead the Press Release
FRESNO, Calif. — Angelo Jackson Mendiver, 27, of Bakersfield, a former campus security supervisor at Arvin High School, was sentenced today to two years in prison for conspiring to engage in the manufacturing and dealing in explosive materials and for mailing explosive devices, as well as making false statements to FBI agents, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mendiver used an Instagram account to sell explosives and explosive materials and worked closely with a male juvenile Bakersfield high school student to fulfill transactions and send explosives in the mail to residents of other states. In Instagram messages to the juvenile, Mendiver sent a photo of titanium salute, an explosive device, followed by two videos of homemade explosive devices that he had made and the statement that “homemade kills all consumer.” He also advised the juvenile to be “super careful bro that homemade shit is dangerous.” On June 1, 2023, a federal search warrant executed at Mendiver’s residence resulted in the seizure of 536 pounds of uncontained explosives and explosive materials, which presented an extreme safety hazard to the residents. Agents seized another 440 pounds of uncontained explosives and explosive materials from the juvenile’s residence. At both residences, agents also found items used to make explosives.
Mendiver also falsely stated to FBI agents that he did not sell explosives and did not work with anyone in committing explosives offenses.
The juvenile co-conspirator’s case is being handled by the Kern County District Attorney’s Office.
This case was the product of an investigation by the FBI with assistance from the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Former Ambridge Water Authority Manager Pleads Guilty to Defrauding Utility of More Than $1 Million over Two-Year PeriodRead the Press Release
PITTSBURGH, Pa. - A resident of Aliquippa, Pennsylvania, pleaded guilty in federal court on October 8, 2024, to a charge of mail fraud, United States Attorney Eric G. Olshan announced today.
Michael Dominick, 44, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the Court was advised that Dominick, a former manager at the Ambridge Water Authority (AWA), defrauded AWA of money and property totaling approximately $1,073,185 during the period of January 2020 through August 2022. As manager of AWA, Dominick was responsible for overseeing all daily business and financial activity and thus had access to AWA’s bank accounts and cash and check payments made to AWA for water and related services. Dominick admitted that he secretly diverted AWA’s money into his own personal bank accounts by writing checks to himself, depositing cash and checks issued to AWA into his personal bank accounts, using an AWA debit card to make purchases of personal items, and adjusting or failing to report the true location of AWA’s funds on critical financial records.
“Michael Dominick’s theft of more than a million dollars from the Ambridge Water Authority is an alarming violation of the public trust,” said U.S. Attorney Olshan. “Those who hold positions of authority at any level of government—and particularly those who are responsible for managing and safeguarding public finances—owe a special duty to act in the best interest of their employer and the community. Our office and our partners in law enforcement will continue to root out and hold accountable public officials who violate federal law and undermine public confidence in government.”
“This plea marks a significant step toward justice,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “This fraud not only affects critical public resources, but also represents a betrayal of public trust. The AWA exists to provide an essential resource to our community. Stealing money in this manner has the potential to directly impact the well-being of tens of thousands of people.”
Judge Bissoon scheduled sentencing for February 20, 2025. The law provides for a total sentence of up to 20 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Beaver County District Attorney’s Office conducted the investigation that led to the prosecution of Dominick.
Federal jury convicts Lame Deer man of rape on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A federal jury today convicted a Lame Deer man of raping a woman in a residence on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
After a three-day trial that began on Oct. 7, the jury found the defendant, Adriano Sparkxxx LeBeaux, 20, guilty of aggravated sexual abuse as charged in an indictment. LeBeaux faces a maximum of life in prison, a $250,000 fine and five years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Feb. 7, 2025. LeBeaux was detained pending further proceedings.
“LeBeaux preyed on the victim by luring her to a basement where he put a knife to her throat and raped her. Violence against women, especially sexual violence, inflicts long-lasting trauma on the victims. I am grateful the jury held LeBeaux accountable for his conduct and hope that the victim will find some measure of healing knowing that LeBeaux faces significant incarceration. I want to thank our prosecution team, the FBI, Bureau of Indian Affairs and Northern Cheyenne Investigative Services for their work on bringing LeBeaux to justice,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that on March 8, 2023, the victim, identified as Jane Doe, met up with LeBeaux at a residence in Lame Deer, on the Northern Cheyenne Indian Reservation. LeBeaux told Doe the police were on their way to search the house and that they needed to hide in the basement. Jane Doe had been drinking and did not want to be arrested because the Northern Cheyenne Reservation is a dry reservation. Hiding in the basement seemed like a good idea to Jane Doe. The victim did not think LeBeaux was drinking.
While in the basement, LeBeaux told Jane Doe to lie down in a corner on the floor, and she fell asleep or passed out. At some point, Jane Doe awoke and LeBeaux was holding her down by the neck. Jane Doe passed out, and when she awoke again, LeBeaux was holding a knife to her throat and then raped her. Jane Doe left the residence and went to the Indian Health Service Clinic where she underwent a sexual assault exam. An analysis of DNA indicated strong support that LeBeaux was the contributor to male DNA identified in the sexual assault exam.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Bureau of Indian Affairs and Northern Cheyenne Investigative Services conducted the investigation.
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Executives plead guilty to diverting $12M from Air Force contractRead the Press Release
ALEXANDRIA, Va. – Two executives at a contractor for the U.S. Air Force (USAF) pled guilty to theft of government property after diverting over $12 million from an Air Force contract to pay for unrelated personal and business expenses.
According to court documents, Thomas D. Burns, 74, of Gainesville, and Daniel B. Tolley, 63, of Purcellville, founded SP Global, Inc. (SPG) in 2012. Burns served, at various times, as Chief Executive Officer, Chairman of the Board, and President. Tolley served, at various times, as Chief Technology Officer, President, and a member of the Board of Directors. In 2016, SPG incorporated SPG Institute, Inc. (SPGI).
On Dec. 20, 2017, the United States Air Force (USAF) issued a Request for Information to initiate a collaborative research consortium for developing autonomy technologies, the Autonomy Research Collaboration Network (ARCNet). SPGI bid on and was ultimately awarded the project for over $196 million.
SPGI’s payment of subrecipients for work performed under the contract relied upon “advance payments” from the Air Force Materiel Command (AFMC), which allowed SPGI to pay for research efforts in a faster, commercial-like manner. SPGI was to receive 4% of each advance payment to cover ARCNet operations and overhead. Only Burns and Tolley exercised control over bank accounts belonging to SPG and SPGI, including the SPGI ARCNet account that received advance payments intended to be held in trust for payment to subrecipients. Between March 28, 2019, and June 23, 2020, the USAF and AFMC, through the Defense Finance and Accounting Service, made a total of $27,250,000 in advance payments to the SPGI ARCNet account.
SPG had previously accumulated large debts at high interest rates from a private lender in connection with its management of a prior government project and other business expenses. Those debts were personally guaranteed by Burns, Tolley, and their spouses. SPG also had spent large amounts of money on expanding its office space and maintaining staff. Burns repeatedly told SPG executives and directors that he had a “family trust” worth approximately $70 million that he could “break” at any time to make good on any debts. Burns never provided records to SPG to prove the trust existed, that it had the assets claimed, or that he had the legal right to “break” the supposed trust.
In light of SPG’s revenue shortfalls and millions in personally guaranteed debts that were coming due in 2020, Burns and Tolley agreed to take “short term loans” exceeding the 4% overhead allowance from advance payments made to SPGI. Burns told Tolley and others that he could use his family trust to replace the government funds taken from SPGI, and that he preferred to take the money intended for subrecipients rather than breaking his trust due to potential personal tax consequences to him. Burns and Tolley directed SPG employees to list some of the transfers from SPGI to SPG as “short term loans,” which SPG failed to secure against Burns’ claimed assets.
From January 16, 2020, through Aug. 28, 2020, Tolley transferred $11,878,000 from SPGI bank accounts to SPG’s business account. The converted ARCNet money was used to cover SPG payroll, SPG business expenses, to discharge personally guaranteed debts, and to pay tens of thousands of dollars to Burns and Tolley. For example, Tolley wrote checks from the SPG business account to Burns for $35,000 for “Repayment of Loan,” to SPG subsidiaries totaling $111,027, and to his personal business venture in Wythe County for $7,500. On one occasion, Burns and Tolley directed a wire payment of $4,683,979.72 to a private lender to cover business loans that were personally guaranteed by Burns, Tolley, and their spouses.
Using money transferred from the SPGI ARCNet account to the SPG business account, Tolley wrote checks to himself totaling at least $115,000. Over $300,000 of the SPGI ARCNet account transfers to the SPG business account went to pay credit card bills for Tolley and Burns. On March 23, 2020, Tolley wrote a $150,164.56 check from the SPG business account to a private lender for loans he and Burns had personally guaranteed.
An SPGI senior employee, who was a former FBI Supervisory Special Agent, strongly advised against use of ARCNet funds from the USAF for SPG business, telling Burns and Tolley that they were not entitled to use ARCNet money for unrelated purposes. A week later, Burns executed a “personal guarantee” drafted by company counsel to personally repay $3,640,000 of ARCNet funds received from the USAF. Burns did not have the personal funds or trust assets to back this personal guarantee. The USAF was never consulted about this plan to convert the ARCNet funds to SPG for payment of previous debts and other expenses.
Beginning in July 2020, after the vast majority of Tolley’s “short term loan” transfers, SPGI failed to pay subrecipients against submitted invoices. Near the end of September 2020, Tolley wrote a check for payment of a subrecipient in the amount of $3,000, for which the account had insufficient funds. The bounced check set off concerns that ultimately led to the discovery of the conversion of over $12 million of ARCNet funds for the benefit of SPG, Burns, and Tolley, at the expense of the government and subrecipients.
In a letter to the USAF dated Jan. 5, 2021, Burns falsely claimed the lack of payments was the result of “significant accounting issues” that would soon be fixed. Burns and Tolley also stated that subrecipients would be paid once investor money arrived from overseas. No investor money ever arrived, and subrecipients performed unpaid work and suffered losses. The ARCNet consortium was set back significantly due to the actions of Tolley and Burns.
Tolley pled guilty on July 10 and is scheduled to be sentenced on Nov. 14, 2024. Burns pled guilty today and is scheduled to be sentenced on Jan. 30, 2025. Each faces up to 10 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 considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brigadier General Amy Bumgarner, Commander of the Office of Special Investigations for the U.S. Air Force and Space Force; and David E. Geist, Acting Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after U.S. District Judge Patricia Tolliver Giles accepted the plea.
The AFMC Law Office, Procurement Fraud Division provided substantial assistance in this case.
Assistant U.S. Attorneys Kenneth R. Simon Jr. and Russell L. Carlberg are prosecuting the case. Assistant U.S. Attorney Maya D. Song and Former Assistant U.S. Attorney Kimberly Pedersen assisted the prosecution.
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 Nos. 1:24-cr-215 (Burns) and 1:24-cr-148 (Tolley).
Eighteen Individuals and Entities Charged in International Operation Targeting Widespread Fraud and Manipulation in the Cryptocurrency MarketsRead the Press Release
BOSTON – Eighteen individuals and entities have been charged for widespread fraud and manipulation in the cryptocurrency markets. Charges were unsealed in Boston against the leaders of four cryptocurrency companies, four cryptocurrency financial services firms (known as “market makers”) and employees at those firms.
Four defendants have pleaded guilty, another defendant has agreed to plead guilty, and authorities apprehended three other defendants in Texas, the United Kingdom and Portugal this week. More than $25 million in cryptocurrency has been seized and multiple trading bots responsible for millions of dollars’ worth of wash trades for approximately 60 different cryptocurrencies have been deactivated.
According to the charging documents, the defendants who created cryptocurrency companies made false statements about their cryptocurrencies (“tokens”) and executed sham trades in those tokens (“wash trades”) to create the appearance of trading activity that would make the tokens look like good investments. These deceptive tactics allegedly attracted new investors and purchasers, which resulted in an increase in the tokens’ trading prices. The defendants are then alleged to have sold their tokens at the artificially inflated prices, a fraud commonly known as a “pump and dump.” The largest of these cryptocurrency companies, Saitama, at one point had a multi-billion-dollar market value.
The cryptocurrency companies also allegedly hired financial services firms ( “market makers”) to wash trade their tokens in exchange for payment. As one market maker defendant, who has agreed to plead guilty, described the practice to a prospective client: the “objective on the secondary markets” is to find “other buyers from the community, people you don’t know about or don’t care about” because “we have to make [the other buyers] lose money in order to make profit.”
Three market makers—ZM Quant, CLS Global and MyTrade—along with their employees are charged with allegedly wash trading and/or conspiring to wash trade on behalf of NexFundAI, a cryptocurrency company and token created at the direction of law enforcement as part of the government’s investigation. A fourth market maker, Gotbit, its CEO, and two of its directors are also charged for perpetrating a similar scheme.
Specifics regarding the defendants and conduct are detailed in Attachment A below.
“This investigation, the first of its kind, identified numerous fraudsters in the cryptocurrency industry. Wash trading has long been outlawed in the financial markets, and cryptocurrency is no exception. These are cases where an innovative technology – cryptocurrency – met a century old scheme – the pump and dump. The message today is, if you make false statements to trick investors, that’s fraud. Period. Our Office will aggressively pursue fraud, including in the cryptocurrency industry,” said Acting United States Attorney Joshua Levy. “These charges are also a stark reminder of how vigilant online investors must be and that doing your homework before diving into the digital frontier is critical. People considering making investments in the cryptocurrency industry should understand how these scams work so that they can protect themselves.”
“What the FBI uncovered in this case is essentially a new twist to old-school financial crime. ‘Operation Token Mirrors’ targeted nefarious token developers, promoters, and market makers in the crypto space. What we uncovered has resulted in charges against the leadership of four cryptocurrency companies, and four crypto ‘market makers’ and their employees who are accused of spearheading a sophisticated trading scheme that allegedly bilked honest investors out of millions of dollars,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI took the unprecedented step of creating its very own cryptocurrency token and company to identify, disrupt, and bring these alleged fraudsters to justice.”
If you bought or sold any of the tokens referenced below, please fill out this form.
The Securities & Exchange Commission has filed civil complaints alleging violations of the securities laws in relation to the conduct at Gotbit, CLS, ZM Quant, Saitama and Robo Inu. Valuable assistance was provided by the Federal Bureau of Investigation’s Legal Attachés (Madrid and London), Portugal’s Policia Judiciaria European Network of Fugitive Active Search Team (ENFAST), the United Kingdom’s National Crime Agency’s National Extradition Unit, the Internal Revenue Service Criminal Investigation, Boston Field Office and the Criminal Division’s Computer Crime and Intellectual Property Section, National Cryptocurrency Enforcement Team.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
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ATTACHMENT A
The following individuals and entities have been charged in U.S. District Court in Boston, Mass.:
Aleksei Andriunin, Fedor Kedrov, Qawi Jalili, Gotbit Consulting LLC (Gotbit) – According to court documents, Gotbit was a well-known “market maker” in the cryptocurrency industry. Aleksei Andriunin, 26, of Russia and Portugal, was Gotbit’s Chief Executive Officer and Founder. Andriunin was arrested on Oct. 8, 2024 in Portugal and awaits extradition. Fedor Kedrov, of Russia, was Gotbit’s Director of Market Making. Qawi Jalili, of Russia was Gotbit’s Director of Sales. Gotbit, Kedrov and Jalili are each charged with wire fraud and conspiracy to commit market manipulation and wire fraud. Andriunin is also charged in a separate criminal complaint with wire fraud, conspiracy to commit market manipulation and wire fraud and conspiracy to commit money laundering.
It is alleged that between 2018 and 2024, Gotbit provided market manipulation and wash trading services to several cryptocurrency companies, including companies located in the United States. Gotbit allegedly made wash trades worth millions of dollars on behalf of clients and received tens of millions of dollars in proceeds for these illicit services. In a 2019 interview published online, Andriunin allegedly described how he developed a code to wash trade and artificially inflate cryptocurrency trading volume. Andriunin allegedly kept track of Gotbit’s market manipulation, including with spreadsheets that compared “Created Volume” from wash trades with naturally occurring “Market Volume.” Gotbit’s employees, including Jalili and Kedrov, allegedly described these wash trading tactics to prospective clients and how to avoid detection. Jalili and Kedrov also allegedly provided these services to multiple cryptocurrencies, including the Saitama and Robo Inu cryptocurrencies.
Riqui Liu, Baijun Ou, ZM Quant Investment LTD (ZM Quant) – ZM Quant was a “market maker” in the cryptocurrency industry that allegedly advertised illicit market manipulation services to clients. Riqui Liu, 26, of the United Kingdom and Hong Kong, was an employee of ZM Quant. Baijun Ou, 32, of Hong Kong, was also an employee of ZM Quant. ZM Quant, Liu and Ou are each charged in a superseding indictment with wire fraud and conspiracy to commit market manipulation and wire fraud.
According to court documents, ZM Quant allegedly advertised a “trading bot” that could “create volume.” ZM Quant employees allegedly discussed these illicit services with clients through Telegram messages and during video teleconferences. For example, as alleged in the charging documents, during a video teleconference in March 2024, Liu and Ou described how ZM Quant would trade “maybe ten times per minute or twenty times a minute” to “increase the trading volume” and “pump the price.” Liu and Ou also described how ZM Quant allegedly used multiple trading wallets to avoid having the trading look “fake.” It is further alleged that ZM Quant provided market manipulation services for multiple cryptocurrency companies, including Saitama and NexFundAI.
Andrey Zhorzhes, CLS Global FZC, LLC (CLS) – CLS was a “market maker” in the cryptocurrency industry that allegedly advertised illicit market manipulation services to its clients. Andrey Zhorzhes, of the United Arab Emirates, was an employee of CLS. Both CLS and Zhorzhes are charged in an indictment with wire fraud and conspiracy to commit market manipulation and wire fraud.
It is alleged that Zhorzhes described to a prospective client how CLS’s algorithm generated trading volume on multiple cryptocurrency exchanges, as follows:
- “We have an algorithm that . . . basically does self-trades, buying and selling.”
- “The idea of volume generation is . . . so the token looks organic and looks live and people get interested in trading it.”
- “It’s very hard to track. . ..We’ve been doing that for many clients.”
- “I know that it’s wash trading and I know people might not be happy about it.”
Zhorzhes and other CLS traders allegedly provided these market manipulation services for NexFundAI.
Liu Zhou, MyTrade MM – MyTrade MM was another “market maker” in the cryptocurrency industry that advertised illicit market manipulation services to its clients, including “pump and dump” consulting services and “wash trades” facilitated by “bots.” Liu Zhou, 39, of China and Canada, was the founder of MyTrade MM. Zhou is charged and has agreed to plead guilty to conspiracy to commit market manipulation and wire fraud.
MyTrade MM’s clients had access to a dashboard on MyTrade MM’s website through which clients specified the desired amount of daily wash trades on identified cryptocurrency exchanges. MyTrade MM’s dashboard described the service as “Volume Support” and allowed for millions in wash trades per day for each client cryptocurrency, for example:
In conversations with purported promoters of NexFundAI, Zhou allegedly described MyTrade MM as superior to “CLS” and “Gotbit” because those market makers “keep clients in the dark” and “control the pump and dump,” which means “they can do inside trading easily.” Zhou allegedly also described the various purposes for wash trading, including showing “continuous trading activity every hour”; generating large enough trading volumes for cryptocurrency exchanges to waive listing fees; and executing “pump and dumps.” According to court documents, Zhou further described that the “objective on the secondary markets” was to find “other buyers from the community, people you don’t know about or don’t care about” because “we have to make [the other buyers] lose money in order to make profit.”
Manpreet Kohli, Haroon Mohsini, Nam Tran, Max Hernandez, Russell Armand, Vy Pham, Saitama LLC (Saitama) – Saitama was a cryptocurrency company, originally incorporated in Massachusetts in August 2021.
Manpreet Kohli, 43, of the United Kingdom, was the CEO of Saitama. Kohli was arrested in the United Kingdom on Oct. 7, 2024 and is awaiting extradition. Haroon Mohsini, 37, of Texas, also worked at Saitama. Mohsini was arrested on Oct. 7, 2024 in the Southern District of Texas. Nam Tran, 32, of Vietnam, worked at Saitama and is currently in Vietnam. Kohli, Mohsini and Tran are each charged in a superseding indictment with wire fraud, market manipulation, and conspiracy to commit wire fraud, commit market manipulation and conduct an unlicensed money transmitting business. Max Hernandez, 36, of Massachusetts, and Russell Armand, 42, of Texas, also worked at Saitama and are charged separately and have both pleaded guilty to market manipulation and conspiracy to commit wire fraud and to operate an unlicensed money transmitting business. Vy Pham, 32, of California, is also charged for conduct at a different cryptocurrency company but, as part of that guilty plea, admitted to certain conduct involving Saitama.
Saitama allegedly purported to create a series of products that could be used with its token and, at its peak, boasted a market value of $7.5 billion. Saitama’s leadership allegedly made a variety of false public statements, including that Saitama’s business plan had been reviewed by regulators, that its leadership was not selling the Saitama tokens they owned and that the Saitama token was coded in a way that prevented market manipulation. According to charging documents, in reality Saitama’s leadership was actively manipulating the market for the Saitama token and secretly selling their Saitama tokens for tens of millions in profits.
Saitama’s market manipulation campaign allegedly began in or about July 2021, when leadership coordinated a series of small purchases spread across multiple cryptocurrency wallets. These trades were coordinated on Telegram, where Armand allegedly explained that the goal was to “create an illusion of massive buys and new holders” to “incite ppl [people] to buy more...W[e] want list of small buys to look like it’s mor[e] buyers. That’s the idea.” Saitama’s leadership allegedly confirmed their purchases to one another, discussed how they were successfully getting others to purchase the Saitama cryptocurrency and exchanged “pump it” memes and GIFs:
Thereafter, the Saitama leadership allegedly paid several market makers to wash trade the Saitama cryptocurrency on cryptocurrency exchanges, including BitMart, LBank and XT.com. The market makers that Saitama paid allegedly included ZM Quant and Gotbit.
Robo Inu Finance (Robo Inu) – Robo Inu was a cryptocurrency company and token that Vy Pham created after she left Saitama in 2021. Pham has been charged and agreed to plead guilty to conspiracy to commit market manipulation, to commit wire fraud and to operate an unlicensed money transmitting business. Pham founded and promoted Robo Inu from the United States. Like Saitama, Robo Inu allegedly purported to create a series of products that could be used with its cryptocurrency. Beginning in or about 2022, Robo Inu allegedly paid Gotbit to artificially inflate the trading volume of the Robo Inu token through wash trades on cryptocurrency exchanges such as Bitmart.
Michael Thompson, VZZN – VZZN was a cryptocurrency company and token that Armand created after he left Saitama in 2023. Michael Thompson, 50, of Virginia, also worked at VZZN. As with Armand, Thompson is charged and pleaded guilty to conspiracy to commit market manipulation. VZZN allegedly purported to be a video streaming service that could be used with the VZZN token. While promoting that service, Armand and Thompson allegedly also made misleading public statements about VZZN and artificially inflated the trading volume of the VZZN token through wash trades.
Bradley Beatty, Lillian Finance LLC (Lillian Finance) - Lillian Finance was a cryptocurrency company and token founded by Bradley Beatty, 48, of Florida. Beatty is charged in an indictment with wire fraud. Lillian Finance allegedly purported to use blockchain technology in the healthcare industry and to use a portion of proceeds generated from token sales for charitable purposes. Beatty allegedly made a series of false statements about Lillian Finance to attract investors, for example, that he was a defense contractor and that he had addressed Congress on the topic of cryptocurrency. Thereafter, it is alleged that Beatty generated hundreds of thousands of dollars in proceeds from retail sales of the Lillian Finance token and misappropriated a portion of Lillian Finance’s profits that were supposed to be used for charity.
The charge of market manipulation provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $5 million or twice the gross gain or loss from the offense and forfeiture. The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit wire fraud, market manipulation and/or to conduct an unlicensed money transmitting business provides for a sentence of up to five years in prison, up to three years of supervised release, a fine of up to $250,000 to twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000, or twice the value of the criminally derived property, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
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Eight Individuals Charged in $68 Million Social Adult Day Care and Home Health Care SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging eight defendants for their alleged roles in a scheme to defraud Medicaid of approximately $68 million through the operation of two Brooklyn-based social adult day cares and a home health care financial intermediary that were paying kickbacks and bribes for services that were not provided. The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Lois Bloom.
Breon Peace, United States Attorney for the Eastern District of New York; Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division; Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); William S. Walker, Special Agent in Charge, Homeland Security Investigations, New York (HSI); and Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“Social adult day care and home health services are meant to help seniors, but as alleged, the defendants allegedly turned their businesses into a brazen cash grab of millions of dollars from the Medicaid program,” stated United States Attorney Peace. “My Office is committed to investigating and prosecuting those who plunder taxpayer-funded, federal health care programs dollars while purporting to offer health care services.”
“As alleged in the indictment, these defendants orchestrated a years-long scheme to defraud Medicaid of tens of millions of dollars for social adult day care and home care services for seniors that they did not provide,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendants allegedly paid cash bribes and kickbacks to recruiters and Medicaid recipients as part of a scheme to enrich themselves at the expense of vital programs for senior citizens. Today’s charges make clear that the Criminal Division will not tolerate schemes that brazenly steal from federal health care programs.”
“HHS-OIG is committed to working with our law enforcement partners to investigate allegations that bribes and kickbacks are paid with Medicaid monies,” stated HHS-OIG Special Agent in Charge Gruchacz. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
“As alleged, the defendants saw nothing beyond the dollar signs associated with their crimes, and in turn defrauded the U.S. government of $68 million in welfare funds meant for one of our country’s most vulnerable populations,” stated HSI New York Special Agent in Charge Walker. “Today’s announcement underscores the HSI New York El Dorado Task Force’s unrelenting focus on dismantling and disrupting financial fraud schemes that exploit the American public and hurt our economy.”
“The crimes outlined in this indictment take advantage of a network that offers essential health care and other services to those in need,” stated Interim NYPD Commissioner Donlon. “Let it be clear: Anyone who attempts to profit by defrauding the system will face consequences, as these schemes drain already limited resources and deprive beneficiaries of crucial funds. I commend our NYPD investigators and federal law enforcement partners for their successful and continued collaboration.”
According to court documents, beginning in approximately October 2017, the defendants Zakia Khan and Ahsan Ijaz owned and operated two Brooklyn-based social adult day cares, Happy Family Social Adult Day Care, Inc. (Happy Family) and Family Social Adult Day Care, Inc. (Family Social), and a financial intermediary, Responsible Care Staffing, Inc. (Responsible Care), for the New York Medicaid Consumer Directed Personal Assistance Program (CDPAP), which permits family members of Medicaid recipients to receive payment for assisting Medicaid recipients with activities of daily living. In exchange for kickbacks and bribes, marketers Elaine Antao, Omneah Hamdi, and Manal Wasef referred Medicaid recipients to Happy Family, Family Social and/or Responsible Care. The marketers in turn allegedly paid kickbacks and bribes to Medicaid recipients for social adult day care and CDPAP services that Happy Family, Family Social and Responsible Care billed to Medicaid but were not provided or were induced by kickbacks and bribes. Ansir Abassi and Amran Hashmi managed Happy Family and Family Social and the marketers. To carry out the kickback scheme, Khan, Antao, Ijaz, Abassi and Hamdi allegedly used business entities to launder the fraud proceeds and generate the cash used to pay kickbacks and bribes. Seema Memon, an employee of Happy Family who was previously charged by complaint on July 1, 2024, was also indicted for conspiracy to commit health care fraud.
Most of the New York Medicaid recipients enrolled at Happy Family and Family Social were paid illegal cash kickbacks and bribes and did not actually visit Happy Family or Family Social or receive CDPAP services arranged through Responsible Care on the purported dates of service as claimed to New York Medicaid/Managed Long Term Care plans. In some instances, the Medicaid recipients were outside the United States on the purported dates of service.
Khan is charged with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, paying health care kickbacks, conspiracy to commit money laundering and money laundering. If convicted, she faces a maximum penalty of 20 years in prison for each count of conspiracy to commit money laundering and money laundering, 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud and paying health care kickbacks and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Abassi, Antao, Hamdi and Ijaz are charged with conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, conspiracy to commit money laundering and money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each count of conspiracy to commit money laundering and money laundering, 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Hashmi is charged with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks and paying health care kickbacks. If convicted, he faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud and paying health care kickbacks and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Memon is charged with conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks and paying health care kickbacks. If convicted, she faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud and paying health care kickbacks and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Wasef is charged with conspiracy to commit health care fraud and conspiracy to defraud the United States and to pay and receive health care kickbacks. If convicted, she faces a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section is prosecuting the case with Assistant United States Attorney Tanisha R. Payne of the Eastern District of New York’s Asset Recovery Section, who is handling forfeiture matters and Paralegal Specialist Jonah Levine.
The Defendants:
KHAN, ZAKIA
Age: 53
Brooklyn, New YorkABASSI, ANSIR (also known as “Zaib Abassi” and “Ansir Zaib”)
Age: 38
Brooklyn, New YorkANTAO, ELAINE (also known as “Aleena”)
Age: 45
Brooklyn, New YorkHAMDI, OMNEAH
Age: 61
Brooklyn, New York
HASHMI, AMRAN
Age: 53
Brooklyn, New YorkIJAZ, AHSAM
Age: 27
Brooklyn, New YorkMEMON, SEEMA
Age: 30
Brooklyn, New YorkWASEF, MANAL
Age: 44
Brooklyn, New York
E.D.N.Y. Docket No.: 24-CR-409 (AMD)
Eight Charged in $68M Social Adult Day Care and Home Health Care SchemeRead the Press Release
An indictment was unsealed today in Brooklyn, New York, charging eight defendants for their alleged roles in a scheme to defraud Medicaid of approximately $68 million through the operation of two social adult day cares and a home health care financial intermediary that were paying kickbacks and bribes for services that were not provided.
According to court documents, Zakia Khan, 53, of Brooklyn, and Ahsan Ijaz, 27, of Brooklyn, owned two social adult day cares, Happy Family Social Adult Day Care Center Inc. (Happy Family) and Family Social Adult Day Care Center Inc. (Family Social), and a financial intermediary, Responsible Care Staffing Inc. (Responsible Care), for the New York Medicaid Consumer Directed Personal Assistance Services Program (CDPAP), which permits family members of Medicaid recipients to receive payment for assisting Medicaid recipients with activities of daily living. Beginning in approximately October 2017, in exchange for kickbacks and bribes, marketers Elaine Antao, 45, also known as Aleena, of Brooklyn, Omneah Hamdi, 61, of Brooklyn, and Manal Wasef, 44, of Brooklyn, allegedly referred Medicaid recipients to Happy Family, Family Social, and/or Responsible Care. The marketers in turn allegedly paid kickbacks and bribes to Medicaid recipients for social adult day care and CDPAP services that Happy Family, Family Social, and Responsible Care billed to Medicaid but were not provided or were induced by kickbacks and bribes. Ansir Abassi, 38, also known as Zaib Abassi and Ansir Zaib, of Brooklyn, and Amran Hashmi, 53, of Brooklyn, allegedly managed Happy Family and Family Social and the marketers. To carry out the kickback scheme, Khan, Antao, Ijaz, Abassi, and Hamdi allegedly used business entities to launder the fraud proceeds and generate the cash used to pay kickbacks and bribes. Seema Memon, 30, of Brooklyn, an employee of Happy Family who was previously charged by complaint on July 1, was also indicted.
“As alleged in the indictment, these defendants orchestrated a years-long scheme to defraud Medicaid of tens of millions of dollars for social adult day care and home care services for seniors that they did not provide,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendants allegedly paid cash bribes and kickbacks to recruiters and Medicaid recipients as part of a scheme to enrich themselves at the expense of vital programs for senior citizens. Today’s charges make clear that the Criminal Division will not tolerate schemes that brazenly steal from federal health care programs.”
“Social adult day care and home health services are meant to help seniors, but as alleged, the defendants allegedly turned their businesses into a brazen cash grab of millions of dollars from the Medicaid program,” said U.S. Attorney Breon Peace for the Eastern District of New York. “My office is committed to investigating and prosecuting those who plunder taxpayer-funded, federal health care programs dollars while purporting to offer health care services.”
“HHS-OIG is committed to working with our law enforcement partners to investigate allegations that bribes and kickbacks are paid with Medicaid monies,” said Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
“The crimes outlined in this indictment took advantage of a network that offers essential health care and other services to those in need,” said Interim Commissioner Thomas G. Donlon of the New York City Police Department (NYPD). “Let it be clear: anyone who attempts to profit by defrauding the system will face consequences, as these schemes drain already limited resources and deprive beneficiaries of crucial funds. I commend our NYPD investigators and federal law enforcement partners for their successful and continued collaboration.”
“As alleged, the defendants saw nothing beyond the dollar signs associated with their crimes, and in turn defrauded the U.S. government of $68 million in welfare funds meant for one of our country’s most vulnerable populations,” said Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York. “Today’s announcement underscores the HSI New York El Dorado Task Force’s unrelenting focus on dismantling and disrupting financial fraud schemes that exploit the American public and hurt our economy.”
Khan is charged with conspiracy to commit health care fraud, three counts of health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, paying health care kickbacks, conspiracy to commit money laundering, and money laundering. If convicted, she faces a maximum penalty of 20 years in prison for each count of conspiracy to commit money laundering and money laundering, 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud, and paying health care kickbacks, and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Abassi, Antao, Hamdi, and Ijaz are charged with conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, conspiracy to commit money laundering, and money laundering. If convicted, they face a maximum penalty of 20 years in prison for each count of conspiracy to commit money laundering and money laundering, 10 years in prison for conspiracy to commit health care fraud, and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Hashmi is charged with conspiracy to commit health care fraud, three counts of health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and paying health care kickbacks. If convicted, he faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud, and paying health care kickbacks, and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Memon is charged with conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and paying health care kickbacks. If convicted, she faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud and paying health care kickbacks and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
Wasef is charged with conspiracy to commit health care fraud and conspiracy to defraud the United States and to pay and receive health care kickbacks. If convicted, she faces a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks.
HHS-OIG, NYPD, and HSI are investigating the case.
Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Tanisha R. Payne for the Eastern District of New York is assisting with forfeiture matters.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eastern Idaho Attorney Sentenced to 42 Months in Federal Prison for Drug Trafficking ConspiracyRead the Press Release
POCATELLO – Robin Dwain Dunn, 69, of Rigby, was sentenced to 42 months in federal prison for his role in a drug trafficking conspiracy in Eastern Idaho. Senior U.S. District Judge B. Lynn Winmill also ordered Dunn to pay a $50,000 fine and to serve three years of supervised release following his prison sentence.
Court records indicate that from June 2022 to February 2023, Dunn—an attorney practicing in Eastern Idaho—agreed with clients and others to distribute controlled substances. During the conspiracy, Dunn and a client made two trips to the Salt Lake City area to pick up methamphetamine and fentanyl. Dunn and the client then brought the drugs back to Idaho for distribution to others.
Court records further indicated that in November 2022, Dunn caused fentanyl to be distributed into a correctional facility (the Bonneville County Jail) to an inmate client. Dunn agreed that he abused a position of trust by using his position as an attorney to further his drug trafficking activities.
“This is a disturbing case in which at attorney endangered his community and jeopardized the integrity of the criminal justice system by distributing deadly drugs,” said U.S. Attorney Hurwit. “Upholding the rule of law means investigating crimes where they should be least expected to occur and holding everyone to the same standards, especially professionals who took an oath to uphold the law. My office is lucky to have law enforcement partners who feel the same way.”
“The Drug Enforcement Administration and our partners work hard to hold people accountable for drug trafficking offenses, regardless of their jobs or backgrounds,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “I am proud of the work our team has done in this case and grateful for the strong message this sentence sends to others who would violate the ethical standards of our society.”
“Teamwork is the cornerstone of successful law enforcement, and this case exemplifies what can be achieved when multiple agencies work together,” said Lieutenant Clint Skinner, Idaho State Police. “By leveraging the expertise and resources of local, state, and federal partners, we were able to dismantle a dangerous drug network and hold those responsible accountable.”
U.S. Attorney Hurwit thanked the Drug Enforcement Administration, the Idaho Falls Police Department, the Bonneville County Sheriff’s Office, the Jefferson County Sheriff’s Office, and the Idaho State Police for their work and collaboration on this case.
This case was prosecuted by Assistant U.S. Attorneys Frank Zebari and Christopher Atwood.
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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Drug Trafficker Sentenced for Operating Methamphetamine LabsRead the Press Release
ATLANTA - Genaro Davalos-Pulido has been sentenced for conspiracy to possess with intent to distribute multiple kilograms of methamphetamine and for illegally possessing a firearm in furtherance of that drug trafficking offense.
“Methamphetamine manufacturers and traffickers like Davalos-Pulido pose a tremendous threat to the safety of our communities,” said U.S. Attorney Ryan K. Buchanan. “Thanks to the relentless investigative efforts of our federal, state, and local law enforcement partners, he’s facing the consequences of his crimes.”
“Guns, drugs, and violence are unfortunately all too common tools of the drug traffickers operating in our communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “Today’s announcement demonstrates DEA’s emphatic commitment to attacking the violent drug dealers responsible for the devastation.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between March 2019 and October 2021, Davalos-Pulido and a co-conspirator operated two clandestine methamphetamine conversion laboratories in the Atlanta area. One methamphetamine lab was located in Morrow, Georgia. DEA special agents discovered the site after receiving information that Davalos-Pulido, who had been previously convicted in the Southern District of Texas in 2013 of importing methamphetamine from Mexico, and his co-conspirator were bringing supplies, known to be used in meth conversion labs, to a home in a Morrow.
On April 23, 2019, DEA agents saw Davalos-Pulido and his co-conspirator driving two vehicles, including a Saturn hatchback, back and forth from this Morrow residence. Davalos-Pulido was seen loading the hatchback with several buckets, colanders, and a plastic pitcher at the house. They then returned the hatchback to a restaurant parking lot and left in another vehicle. A few minutes later, a third individual drove away in the hatchback. Clayton County, Georgia police stopped the vehicle and located the buckets, colanders, and pitcher in the trunk. Several of the paint buckets contained liquid methamphetamine mixed with paint, totaling over 156 kilograms. Davalos-Pulido and his co-conspirator fled the area after the seizure.
In October 2021, DEA agents located Davalos-Pulido and his co-conspirator at a second meth lab at a home in Norcross, Georgia. On October 21, 2021, agents arrested the co-conspirator. Agents and law enforcement then executed a search warrant at the residence and recovered a loaded firearm on the center armrest of a couch that also concealed thousands of dollars in cash. Agents also found a large .50 caliber rifle, three buckets of liquid methamphetamine mixed with paint, containers, strainers, acetone, propane tanks, and other materials used for cooking methamphetamine. Investigators also found smaller amounts of crystal methamphetamine, heroin, a digital scale, and a money counter inside the home. Davalos-Pulido was arrested following the search.
Genaro Davalos-Pulido, 31, of Atlanta, Georgia, was sentenced by U.S. District Judge Eleanor L. Ross to 20 years in prison to be followed by five years of supervised release. Davalos-Pulido was convicted of conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of that drug trafficking crime on June 26, 2024, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration, with valuable assistance from the Georgia Bureau of Investigation, Lawrenceville Police Department, Clayton County Police Department, Georgia State Patrol, and Long Beach (California) Police Department.
Assistant U.S. Attorneys Bethany L. Rupert and Thomas M. Forsyth, III prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Disbarred Attorney Admits Defrauding Victims in Ponzi-Like Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, disbarred attorney today admitted a wire fraud scheme that caused losses of more than $1 million, U.S. Attorney Philip R. Sellinger announced.
Lawrence Coven, 61, of Hillsborough, New Jersey, pleaded guilty before U.S. District Court Judge Robert Kirsch in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
Coven operated and controlled Sunrise Enterprises LLC, which purported to provide financial services to investors. In reality, Coven induced victim investors into sending him funds by falsely representing that he would invest their money through Sunrise in exchange for large profits by providing short-term loans to borrowers who could not obtain standard loans. He falsely guaranteed investors returns of between 10 to 15 percent on their investments and told investors that their investments were risk-free. But instead of investing the money as he promised, Coven diverted investor funds for personal expenses, including utilities, entertainment, real estate, credit card bills, and cash withdrawals. And when investors began asking questions, Coven provided them with false assurances that their money was safe and used money from existing investors to make payments to other investors in a Ponzi-like fashion.
The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for Feb. 13, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Olta Bejleri and Fatime Meka Cano of the Economic Crimes Unit in Newark.
coven.information.pdfDisabilities Day Program Employee Sentenced to 230 Days in Jail for Exploiting Vulnerable Adults and ShopliftingRead the Press Release
WASHINGTON — Danielle Marquita Baltimore, 40, of the District of Columbia, was sentenced today to 180 days of incarceration for financial exploitation of a vulnerable adult or elderly person, and 50 days for shoplifting. Each sentence will run concurrent to each other. The announcement was made today by U.S. Attorney Matthew M. Graves, and Daniel W. Lucas, Inspector General for the District of Columbia.
Baltimore pleaded guilty to the two charges on October 2, 2024, before the Honorable Robert Rigsby, in the Superior Court of the District of Columbia.
According to the government’s evidence, Baltimore worked as a direct support professional at Innovative Day, LLC, a day program for adults with developmental disabilities. Baltimore’s duties included taking individuals who require assistance or supervision in a safe environment outside the home during the day. Along with her guilty plea, Baltimore admitted that on or about December 20, 2023, Baltimore took two vulnerable adults who suffer from cognitive and developmental disabilities to Walmart, located at 310 Riggs Rd NE, Washington, DC. While at Walmart, Baltimore coerced the two vulnerable adults under her care into shoplifting items on her behalf. Baltimore placed items consisting of sneakers, clothing, and various merchandise in bags and gave the bags to the victims. Baltimore instructed the victims to exit Walmart without paying for the items. After leaving Walmart, Baltimore retrieved all of the concealed items from the victims. One victim stated they felt bad for shoplifting but complied for fear Baltimore would harm them for refusing.
This prosecution is part of the Office’s wider efforts to combat crimes against seniors and vulnerable adults. In 2018, the U.S. Attorney’s Office for the District of Columbia launched an initiative to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit.
The U.S. Attorney’s Office’s Elder Abuse and Financial Exploitation Initiative partners with the D.C. Office of the Inspector General’s Medicaid Fraud Control Unit (MFCU), which is statutorily responsible for investigating and prosecuting District Medicaid provider fraud as well as abuse or neglect of residents in health care facilities and board and care facilities and of District Medicaid beneficiaries in noninstitutional or other settings.
This prosecution is indicative of the continued collaboration between the U.S. Attorney’s Office and the D.C. Office of the Inspector General to investigate and prosecute cases of this kind. The government urges the public to provide tips and assistance to stop health care fraud. If you have information about individuals committing health care fraud, please call the D.C. Office of the Inspector General at 202-724-TIPS [202-724-8477].
In announcing the sentence, U.S. Attorney Graves and Inspector General Lucas acknowledged the work of those who investigated and prosecuted the case from the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia and the Office of Inspector General’s MFCU. They also commended the efforts of Special Assistant United States Attorney Emmanuela Charles, on detail from the MFCU, who prosecuted the case, and MFCU Special Agents Eduardo Torre and Victor Richardson, who investigated the matter.
Charleston Man Sentenced to Prison for Federal Opioid CrimeRead the Press Release
CHARLESTON, W.Va. – Jesus Emmanuel Davis, 25, of Charleston, was sentenced today to three years and six months in prison, to be followed by three years of supervised release, for distribution of protonitazene and isotonitazene.
According to court documents and statements made in court, on April 7, 2023, Davis sold five pills to a confidential informant in Charleston. The pills were counterfeit pressed pills with the same markings as 30mg oxycodone pills. The West Virginia State Police Forensic Laboratory confirmed that the pills contained protonitazene and isotonitazene, synthetic opioids potentially more dangerous and deadly than fentanyl.
Law enforcement officers conducted seven additional controlled buys during which Curon Cameron Cordon sold quantities of the same pills to a confidential informant. Cordon drove the confidential informant to Davis’ residence to obtain the pills for four of those transactions. On June 8, 2023, law enforcement officers executed a search warrant at Davis’ residence. Officers seized 95 of the same pills purchased during the controlled buys from the pocket of a jacket hanging inside Davis’ bedroom closet.
Davis has a criminal history that includes multiple prior convictions including for domestic battery.
Cordon, 24, of Charleston, pleaded guilty on August 1, 2024, to distribution of protonitazene and isotonitazene and awaits sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Lesley C. Shamblin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-51.
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Carbon & Luzerne County Men Charged with Conspiracy, Burglary of A U.S. Post Office, and Bank FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Juan Jose Rodriguez Tejeda, age 22, of Luzerne County, Pennsylvania, and Angel Luis Carrasco Marinez, age 20, of Carbon County, Pennsylvania, were indicted on October 8, 2024, by a federal grand jury for conspiracy to commit burglary of U.S. Post Offices, burglary of a U.S. Post Office, and bank fraud.
According to United States Attorney Gerard M. Karam, the indictment alleges that between May 12, 2024 and August 12, 2024, Rodriguez Tejeda and Carrasco Marinez conspired to burglarize multiple U.S. Post Offices in the Middle District of Pennsylvania, the Eastern District of Pennsylvania, and the District of New Jersey. The indictment also alleges that Rodriguez Tejeda and Carrasco Marinez burglarized a U.S. Post Office in Cornwall, Pennsylvania. The indictment further alleges that Rodriguez Tejeda altered checks stolen from the burglaries in order to deposit them into his own bank account.
This matter was investigated by the U.S. Postal Investigation Service (USPIS). Assistant United States Attorney Sarah R. Lloyd is prosecuting the case.
The maximum penalty under federal law for burglary of a U.S. Post Office is 5 years imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for bank fraud is 30 years imprisonment, a term supervised release, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Bob Dean Jr. and Affiliated Corporate Entities Agree to $8.2M Consent Judgment to Resolve Allegations of Financial Misconduct Stemming from Evacuation of Nursing Homes During Hurricane IdaRead the Press Release
Bob Dean Jr. and several companies that he owned and operated have agreed to an $8.2 million consent judgment to resolve allegations that they violated the National Housing Act of 1934 (NHA), by misappropriating and misusing the assets and income of four nursing homes in Louisiana before and after Hurricane Ida’s landfall in August 2021. The four nursing homes, all of which were owned and operated by Dean and his companies, and had loans insured by the Federal Housing Administration (FHA), are Maison De’Ville Nursing Home in Houma; Maison De’Ville Nursing Home in Harvey; Maison Orleans Healthcare in New Orleans; and West Jefferson Health Care Center in Harvey.
The FHA, part of the Department of Housing and Urban Development (HUD), provides mortgage insurance on loans that cover residential care facilities, such as nursing homes, pursuant to the NHA. To encourage lenders to make loans to such facilities, FHA mortgage insurance provides lenders with protection against losses that result from borrowers defaulting on their mortgage loans. To obtain such FHA-insured loans, loan recipients must enter into regulatory agreements with the FHA that provide, among other requirements, that the assets and income of an FHA-insured nursing home may only be spent on goods and services that are reasonable and necessary to the operation of the nursing home. The NHA permits the United States to recover twice the amount of any assets and income of FHA-insured nursing homes that were improperly distributed or misspent.
In 2023, the government filed a complaint against Dean and his corporate entities alleging that they misspent the nursing homes’ assets and income. The United States alleged that in the five years leading up to Hurricane Ida, Dean funneled money that should have been used to prepare an evacuation site for nursing home residents to his personal bank accounts, leaving his nursing homes — and, more importantly, the nursing homes’ residents — unprepared for a hurricane. As a result, when Hurricane Ida made landfall in August 2021, the residents of Dean’s nursing homes had to ride out the storm in an overcrowded and ill-prepared industrial warehouse Dean owned through a corporate entity. The United States alleged that at Dean’s evacuation center, his nursing homes’ residents languished in squalor and did not receive adequate care, leading to the Louisiana Department of Health evacuating the nursing home residents from Dean’s warehouse and revoking Dean’s nursing homes’ licenses. The United States further alleged that, following the hurricane, Dean did not use the homes’ income and assets solely to operate or maintain the nursing homes, but instead to purchase personal goods and services, including antiques, firearms and cars.
“This settlement demonstrates the department’s continuing commitment to holding accountable those who put their own financial gain over the needs of our nation’s seniors,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to take action to protect the integrity of federal programs designed to ensure that nursing home residents, who are among our most vulnerable citizens, receive appropriate care.”
“As the residents of Louisiana well know, hurricanes and natural disasters can devastate people’s lives,” said U.S. Attorney Ronald C. Gathe Jr for the Middle District of Louisiana. “Nursing home operators like Mr. Dean have an obligation to protect their residents during such events, particularly if they are going to rely on federal programs to support or sustain their businesses. This settlement will ensure that those individuals charged with caring for our community’s most vulnerable residents take seriously their duty to have proper safeguards and plans in place to avoid tragedies like the one we saw in Independence, Louisiana, after Hurricane Ida.”
“Nursing home providers have obligations to protect the health, safety, and welfare of residents entrusted to their care,” said HUD General Counsel Damon Smith. “Owners of FHA-insured nursing homes should be on notice that we will hold them accountable when we learn of allegations that they have failed to meet those obligations.”
“By the time Hurricane Ida bore down on the vulnerable nursing home residents at properties operated by Mr. Dean, he illegally skimmed funding from those facilities and failed to maintain sanitation and adequately equip the warehouse he designated as the evacuation site,” said HUD Inspector General Rae Oliver Davis. “He unfairly enriched himself while residents under his charge endured horrid conditions including insufficient food and medical care. HUD OIG will continue to work with our law enforcement and prosecutorial partners to hold accountable those who misappropriate funds at the expense of vulnerable populations.”
The Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Louisiana handled the case, with substantial assistance from HUD and HUD’s Office of Inspector General. Trial Attorneys Christopher Reimer and Samuel Robins of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Davis Rhorer Jr. and Chase Zachary for the Middle District of Louisiana handled the matter.
The United States’ complaint stemmed from an investigation that the Justice Department initiated as part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at www.justice.gov/elderjustice.
The claims settled by this agreement are allegations only. There has been no determination of liability.
Bikini barista coffee stand owner, who underreported income to commit tax fraud, sentenced to prison, fine, and community serviceRead the Press Release
Seattle – The owner of a string of bikini barista coffee stands was sentenced today in U.S. District Court in Seattle to 30 days in prison, a $5,000 fine, and 100 hours of community service for tax fraud, announced U.S. Attorney Tessa M. Gorman. Rajesh Mathew, 45, of Auburn, Washington, pleaded guilty to making and subscribing a false tax return. In his plea agreement Mathew, admitted he underreported a substantial amount of income over a period of several years. At today’s sentencing hearing U.S. District Judge Tana Lin said, “Tax fraud is an enormous problem…. It is a serious crime…. There is no excuse for hiding half a million dollars in a life of privilege, except greed.” Judge Lin rejected the defense request for a sentence of home confinement saying it would only be an inconvenience, and not reflective of the seriousness of the offense.
The sentencing today is the first in a series of cases involving one family whose various members own strings of coffee stands. Mathew’s brother-in-law Assad Baragzai, 47, also of Auburn, admitted in August 2024, that between 2016 and 2020 he failed to report as much as $6 million in income on his tax returns. Baragzai faces up to three years in prison when sentenced by Judge Lin on November 18, 2024.
In asking for a 4-month prison sentence for Mathew, Assistant United States Attorney Michael Dion wrote to the court, “…most Americans pay their taxes voluntarily and on time – as much as 85%, by IRS estimates. The root of the tax evasion problem is not widespread fraud, but rather a small minority of people and businesses who refuse to pay what they owe. Raj Mathew is one of those people. Mathew ran a successful business and earned a comfortable living. Nevertheless, year after year, he chose to cheat the government and, by extension, his fellow citizens. There is no sign of any excuse or extenuating circumstances. Mathew simply did not want to pay what he owed.”
Mathew has already paid restitution to the Internal Revenue Service. He may also face additional civil penalties, fines, and interest for the tax loss.
Filing or subscribing a false tax return is punishable by up to three years in prison and a $250,000 fine or twice the gain or loss from the offense.
The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorney Michael Dion.
Belton Man Sentenced for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Belton, Mo., man was sentenced in federal court today for leading a drug-trafficking conspiracy and for illegally possessing a firearm.
Serjio Diaz, 40, was sentenced by U.S. District Judge Greg Kays to 15 years in federal prison without parole.
On April 9, 2024, Diaz pleaded guilty to one count of conspiracy to distribute heroin, methamphetamine, and cocaine, one count of possessing heroin with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of money laundering.
Diaz admitted that he was the primary organizer of a drug-trafficking conspiracy that lasted from Jan. 1, 2019, to June 22, 2021.
The investigation began on March 18, 2019, when federal agents interdicted and seized a package from California that contained more than 4.5 kilograms of methamphetamine, which was addressed to Diaz’s residence. On the same day, federal agents also interdicted and seized a package from California that contained more than three kilograms of methamphetamine, which was addressed to the residence of his brother and co-defendant, Tony Diaz, 41, of Raymore, Mo.
During the course of the investigation, investigators conducted 23 controlled transactions from Serjio and Tony Diaz, utilizing an FBI confidential source. Over the course of these controlled purchases, law enforcement purchased more than seven kilograms of methamphetamine, more than six kilograms of heroin, and 468.6 grams of cocaine from Serjio and Tony Diaz for a total of $243,900.
In one transaction, for example, the confidential source purchased a kilogram of methamphetamine for $9,000 from Tony Diaz. In another instance, the confidential source purchased 222.4 grams (7.5 ounces) of cocaine from Serjio Diaz for $7,000.
On June 22, 2021, law enforcement officers arrested Serjio and Tony Diaz and searched Serjio Diaz’s residences and vehicles. Officers found almost nine kilograms of heroin, 166 grams of cocaine, six bags of pills that contained fentanyl and weighed a total of 78 grams, a Glock 9mm semi-automatic pistol, and $82,250 in cash.
Officers searched Tony Diaz’s residence and found 1,128 grams of suspected heroin, 28 grams of suspected cocaine, a Zastava Arms 7.62x39mm semi-automatic rifle, a Romarm Cugir 7.62x39mm semi-automatic rifle, and $5,461 in cash in Tony Diaz’s bedroom. Officers also found a Remington Arms .22-caliber rifle in a shed, one pound of suspected marijuana in his Lincoln Navigator SUV, and a Ruger 9mm semi-automatic pistol and 3.4 grams of suspected marijuana in his BMW X5.
From May 1, 2019, to Dec. 31, 2020, Serjio Diaz deposited 93 money orders, totaling $82,145, into either his personal bank account or the bank account of his business, Imperial Window & Gutter Cleaning, LLC. Serjio Diaz went to multiple post offices on the same date to purchase money orders; 21 of those purchases occurred soon after a controlled drug purchase was made by law enforcement in this investigation. Serjio Diaz limited his purchase to a maximum of $2,000 at each post office in order to avoid federal reporting requirements.
Tony Diaz has pleaded guilty to one count of conspiracy to distribute heroin, methamphetamine, and cocaine, one count of possessing heroin with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of being a felon in possession of a firearm. A sentencing hearing has not yet been scheduled for Tony Diaz.
Co-defendant Maria Jasmin Lopez, 24, of Phoenix, Arizona, also pleaded guilty to her role in the drug-trafficking conspiracy and was sentenced on Aug. 1, 2023, to 10 years and three months in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the U.S. Postal Inspection Service, the FBI and the Jackson County Drug Task Force.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Bakersfield Man Pleads Guilty to Burglarizing a U.S. Post Office in Kern CountyRead the Press Release
FRESNO, Calif. — Shawn Van Dixon, 39, of Bakersfield, pleaded guilty Tuesday to burglary of a U.S. Post Office, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 28, 2023, Van Dixon forcefully broke into the U.S. Post Office in Caliente, California, by smashing in a glass door with a black hatchet. Van Dixon broke in just before working hours when the post office was empty. Once inside he stole several mail items, including envelopes, letters, and packages, from post office boxes and other locations belonging to more than 10 victims before driving off in a stolen truck.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Cody S. Chapple is prosecuting the case.
Van Dixon is scheduled to be sentenced on Jan. 28, 2025, by U.S. District Judge John A. Mendez. Van Dixon faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual 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.
Arizona Man Sentenced to More than 8 Years in Federal Prison for Iowa Fentanyl PossessionRead the Press Release
Benito Curiel, 25, from Phoenix, Arizona, who had recently resided in South Sioux City, Nebraska, was sentenced on October 8, 2024, in federal court in Sioux City, Iowa, to nearly nine years’ imprisonment. Curiel pled guilty on March 20, 2024, to possession with intent to distribute fentanyl.
Evidence at the plea and sentencing hearings showed that on May 17, 2023, Curiel was involved in an attempt to flee law enforcement. Officers observed Curiel unconscious in his vehicle in South Sioux City, Nebraska. Curiel ultimately was awoken and fled the area in his vehicle. The pursuit, which reached speeds of approximately 90 miles per hour, crossed over the Veteran’s Bridge which connects Nebraska and Iowa. At one point stop sticks were deployed, puncturing the two front tires of the vehicle, but Curiel continued to operate the vehicle through residential areas in Sioux City, Iowa, before eventually crashing into a retaining wall. Law enforcement conducted a search of Curiel and found 437 fentanyl pills in his pocket.
Curiel was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Curiel was sentenced to 105 months’ imprisonment and must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Curiel remains in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Patrick T. Greenwood and Kevin Fletcher, and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; Woodbury County Attorney’s Office, and the Iowa State Patrol. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 23-4044. Follow us on X @USAO_NDIA.
Arizona Man Sentenced to 49 Months in Prison for $4.4 Million Conspiracy to Defraud IRSRead the Press Release
NEWARK, N.J. – An Arizona man was sentenced today to 49 months in prison for conspiring to obtain over $4.4 million by defrauding the IRS, U.S. Attorney Philip R. Sellinger announced.
Walid Khater, 38, of Mesa, Arizona, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Walid Khater’s conspirator, Omar Khater, 33, of Fairfield, New Jersey, previously pleaded guilty to the same charges and was sentenced on June 12, 2024, to 57 months in prison.
According to documents filed in this case and statements made in court:
Walid and Omar Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS.
The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of individual taxpayers without their knowledge or permission. The fraudulent filings caused the IRS to pay lucrative tax refunds, totaling $4.49 million, which the Khaters and others directed to various bank accounts that they controlled.
In addition to the prison term, Judge Martinotti sentenced Walid Khater to three years of supervised release and ordered restitution of $4.49 million.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, and special agents of FBI-Newark, under the direction of Acting Special Agent in Charge Nelson I. Delgado with the investigation leading to the sentencing. He also thanked the NJ Transit Police.
The government is represented by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.
Annandale-Based Doctor Pleads Guilty to Distributing Oxycodone and Promethazine-Codeine Solution, Money LaunderingRead the Press Release
ABINGDON, Va. – An Annandale-based doctor, who conspired with others to distribute more than 7,000 oxycodone pills, 34,000 milliliters of hydrocodone-chlorpheniramine solution, and 107,000 milliliters of promethazine-codeine solution, pled guilty this week in federal court.
Rotimi Iluyomade, 68, of Alexandria, Virginia, waived his right to be indicted and pled guilty to a two-count Information charging him with one count of conspiracy to distribute and possess with the intent to distribute oxycodone, to obtain drugs by fraud and to maintain a place for the purpose of disturbing a controlled substance and one count of money laundering.
“Every doctor takes an oath to treat their patient and to do no harm, but when a doctor falls short of that oath, they must be held accountable,” United States Attorney Christopher R. Kavanaugh said today. “In this case, a doctor put many in harm’s way. I am grateful to those who worked to stop the supply of these addictive and dangerous substances from reaching our communities and holding accountable a doctor who profited from the addictions of others.”
“Healthcare providers have a vital responsibility when it comes to dispensing medications to meet the health needs of their patients,” mentioned DEA Special Agent in Charge Jarod Forget. “This plea demonstrates Iluyomade’s criminal indifference to the lives of others, and the families who loved them. His reckless and fraudulent practices placed profits over the fragile lives of others. Our team is dedicated to safeguarding the safety and well-being of all individuals across the nation. This commitment includes ensuring that licensed professionals adhere to the law and report any hazardous conduct.”
According to court documents, between 2023 and June 2024, Iluyomade and at least 8 other co-conspirators entered into an agreement to distribute more than 7,000 oxycodone pills and more than 34,000 milliliters of hydrocodone-chlorpheniramine solution to individuals in multiple states. In addition, the co-conspirators agreed to acquire and obtain promethazine-codeine solution by fraud and to maintain a medical clinic known as Crossover Medical Center in Annandale, Virginia, for the purpose of unlawfully distributing controlled substances.
The conspiracy began in 2022 when, after an almost 30-year career as an emergency medicine physician, Iluyomade leased office space at the Crossover Medical Center and opened a pain management and weight loss clinic. Shortly after opening his clinic, an individual came to the clinic requesting a specific medication, promethazine-codeine solution (also known as “lean” or “purple drank”) for what they claimed was a chronic cough. Iluyomade examined the individual and prescribed promethazine-codeine solution.
The individual returned to the clinic several times and told Iluyomade that they were not using the promethazine-codeine for themself but was selling it to others for profit.
Beginning in 2023, multiple individuals visited Iluyomade’s clinic to obtain fraudulent prescriptions for promethazine-codeine solution, as well as fraudulent prescriptions for oxycodone pills and hydrocodone-chlorpheniramine solution, also known as “Tussionex.” On many occasions, the individuals provided Iluyomade with lists of multiple “patients” with fake identifying information or different variations of names and false addresses, and requested prescriptions be sent to pharmacies throughout the United States for the “patients” on the lists. Iluyomade issued the requested prescriptions without examining the “patients” and often co-prescribed non-controlled medications such as steroids and antibiotics to attempt to make the prescriptions for controlled substances look legitimate.
Iluyomade was paid $300 for each fraudulent prescription he wrote. He wrote the prescriptions knowing they had no legitimate medical purpose and solely for his own monetary gain.
At least 70 of the illegal controlled substance prescriptions were transmitted to and/or filled at pharmacies in the Western District of Virginia.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Virginia State Police, the Salisbury, Maryland Police Department, the Loudoun County Sheriff’s Office, and the Russell County Sheriff’s Office are investigating the case. Valuable investigative assistance was provided by the United States Attorney’s Office for the Eastern District of Virginia.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
Alexandria Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
ALEXANDRIA, La. – Tyrone Donnell Porter, 51, of Alexandria, has been sentenced for conspiracy to distribute and possess with intent to distribute methamphetamine, announced United States Attorney Brandon B. Brown. United States District Judge Dee D. Drell sentenced Porter to 360 months (30 years) in prison, followed by 5 years of supervised release.
Porter was found guilty of the charge by a jury in Alexandria after a trial in December 2023. Evidence introduced at trial revealed that agents with the Federal Bureau of Investigation began an investigation into the drug trafficking activities of Porter and others during 2021. Law enforcement agents obtained a search warrant for a hotel room which was rented under Porter’s name in Alexandria and where Porter was staying. On September 30, 2021, agents executed the search warrant and found Porter inside the hotel room, along with two other individuals. Inside the room, agents found two bags containing a glass pipe with methamphetamine residue, 2 boxes and 18 loose rounds of ammunition, as well as a Sig Sauer 9mm handgun in a holster loaded with 11 rounds in the magazine.
In addition, agents found a large black plastic bag with a can which had a vacuum sealed bag containing 492 grams of suspected methamphetamine. Agents were later able to obtain video footage of Porter carrying the black plastic bag which had the can of methamphetamine into the hotel just minutes before law enforcement arrived to execute the search warrant.
The case was investigated by the Federal Bureau of Investigation and Rapides Parish Sheriff’s Office and prosecuted by Assistant United States Attorneys John W. Nickel and Casey N. Richmond.
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Acton Man Convicted of Child Pornography OffensesRead the Press Release
BOSTON – Acton man was convicted today following a 2-day trial in federal court in Boston of possession and receipt of child pornography and sexual exploitation of children.
Patrick Baxter, 44, was convicted of one count of possession of child pornography, one count of receipt of child pornography, one count of sexual exploitation of children. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 8, 2024. Baxter was previously arrested and charged in December 2022.
“It is difficult to find the words to capture how abhorrent the defendant’s conduct was, and today a jury agreed. This man exploited a 7-year old victim for his own perverted gratification and thought he could get away with it by hiding behind an encrypted device. Thanks to the excellent work of the investigators in this case, the encryption was cracked and this defendant was brought to justice,” said Acting United States Attorney Joshua S. Levy. “There is no higher priority in this office than protecting children from sexual exploitation, especially at the hands of trusted adults. Mr. Baxter will have many years in prison to reflect on the harm he has inflicted and any other individual tempted to sexually exploit minors should take notice that you will be held accountable.”
“Today, Patrick Baxter was convicted of amassing hundreds of images of young children suffering horrific sexual abuse. These videos represent unimaginable pain forced upon utterly vulnerable victims, and we’re grateful for the jury’s swift verdict,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Know that the men and women on FBI Boston’s Child Exploitation – Human Trafficking Task Force will never stop looking for, and locking up, those involved in the sexual exploitation of children.”
Baxter downloaded child sexual abuse material (CSAM) from the internet on at least three occasions in June and July 2021. A computer hard drive seized during a search of Baxter’s residence was found to contain approximately 427 video files depicting CSAM featuring prepubescent and pubescent minors engaged in various types of sexual acts and the lascivious display of their genitals.
The charge of receipt of child pornography provides for a maximum sentence of 20 years in prison with a five-year mandatory minimum sentence, a $250,000 fine and a maximum of life with a mandatory minimum of five years of supervised release. The charge of possession of child pornography provides for a sentence of up to 10 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of sexual exploitation of children provides for a sentence of up to 30 years in prison, at least 15 years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Melrose Police Department and the Royal Canadian Mounted Police. Assistant U.S. Attorneys David G. Tobin and Jessica L. Soto of the Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Activity in the U.S. Attorney's OfficeRead the Press Release
Child Pornography
Gregory James Griffin, 41, of Cheyenne, Wyoming, was sentenced to 120 months’ imprisonment for possession of child pornography – subsequent offense. According to court documents, in September 2023, the Wyoming Division of Criminal Investigation (DCI) Internet Crimes Against Children (ICAC) Task Force began receiving CyberTips involving a phone number belonging to Griffin. A search warrant resulted in the seizure of the defendant’s phone identified during the investigation. Over 60 files of child pornography were located on his phone. Griffin had a previous conviction for possession of child pornography out of California in 2010 and is a registered sex offender in the state of Wyoming. This crime was investigated by the DCI-ICAC Task Force, and the case was prosecuted by Assistant U.S. Attorney Z. Seth Griswold. Griffin was indicted on May 16, pleaded guilty on July 16, and Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Oct. 8, in Casper. Case No. 24-CR-00062
Drug Trafficking
James P. Graham, 64, of Cheyenne, Wyoming, was sentenced to 87 months’ imprisonment with five years of supervised release for distribution of methamphetamine. According to court documents, on Dec. 17, 2023, the Wyoming Highway Patrol (WHP) conducted a traffic stop on Graham, who had a warrant for his arrest. The trooper deployed his K9 partner on Graham’s vehicle and the dog obtained a positive alert. Graham had over 165 grams of methamphetamine, packaging, and drug paraphernalia. A forensic download of Graham’s phone indicated he was a source of supply for methamphetamine. Graham waived indictment and pleaded guilty to an Information on July 9. U.S. District Court Judge Kelly H. Rankin imposed the sentence on Oct. 1, in Cheyenne. The Wyoming Division of Criminal Investigation and WHP investigated the crime and Assistant U.S. Attorney Timothy J. Forwood prosecuted the case. Case No. 24-CR-00092
Robert Allen Yetsick, aka Ryan Kelp, 36, a transient, was sentenced to 46 months’ imprisonment with three years of supervised release for possession with intent to distribute methamphetamine. According to court documents, the Cheyenne Police Department (CPD) were dispatched to the Days Inn for a welfare check where they found the defendant unresponsive in his room. Upon entering, Cheyenne Fire and Rescue found hypodermic needles, a plastic bag containing approximately 45 grams of methamphetamine, a plastic container containing 3.41 grams of heroin, and a small amount of marijuana. After a search of Yetsick’s phone, officers found messages requesting ¼ pound of methamphetamine from him and wanting to trade pills for methamphetamine. This crime was investigated by the Drug Enforcement Administration and CPD. The case was prosecuted by Timothy J. Forwood. Yetsick was indicted on May 20, pleaded guilty on July 15, and U.S. District Court Judge Kelly H. Rankin imposed the sentence on Oct. 3, in Cheyenne. Case No. 24-CR-00059
Preston James Castor, 23, of Sundance, Wyoming, was sentenced to 46 months’ imprisonment with three years of supervised release for possession with intent to distribute methamphetamine. According to court documents, on Feb. 15, the Riverton Police Department (RPD) pulled over Castor for crossing over the fog line with the vehicle’s passenger side, in Riverton. Dispatch advised that Castor had an active South Dakota Fugitive warrant. He was placed under arrest and a subsequent search of his vehicle conducted by the Wyoming Division of Criminal Investigations (DCI), recovered 3.5 Kilograms of cocaine, 20.8 kilograms of methamphetamine, a money counter, a small number of unknown pills, and $1,600.00 in U.S. Currency. This crime was investigated by the Drug Enforcement Administration, DCI and RPD. The case was prosecuted by Timothy J. Forwood. Castor was indicted on May 20, pleaded guilty on July 19, and U.S. District Court Judge Kelly H. Rankin imposed the sentence on Oct. 4, in Cheyenne. Case No. 24-CR-00061
Drug and Firearm Offenses
Quinton James Fisher, 21, of Evansville, Wyoming, was sentenced to 120 months’ imprisonment with three years of supervised release for possession with intent to distribute methamphetamine and felon in possession of a firearm. According to court documents, on March 18, a special agent with the Wyoming Division of Criminal Investigation (DCI) received a tip that Fisher was selling drugs out of a hotel room in Evansville. Fisher had been on their radar for some time. A search of Fisher’s room yielded approximately 2.6 pounds of methamphetamine, 2,730 fentanyl pills, smaller amounts of crack cocaine and psilocybin mushrooms, drug packaging and scales, $4,500 in U.S. currency, three semi-automatic rifles and one semi-automatic handgun. DCI and the Casper Police Department investigated the crime and Assistant U.S. Attorney Paige Hammer prosecuted the case. Fisher waived indictment and pleaded guilty to an Information on July 1. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence of Oct. 3, in Casper. Case No. 24-00091
Firearm Offenses
Andrew Lee Kirkendall, 46, of Cheyenne, Wyoming, was sentenced to 30 months’ imprisonment with three years of supervised release for being a felon in possession of a firearm. According to court documents, on Sept. 5, 2023, the Cheyenne Police Department (CPD) were dispatched to the American Legion Post 6 for reports of shots fired. Witnesses pointed to the defendant but when an officer tried to approach Kirkendall, he ran away. A foot pursuit with additional CPD officers and the Wyoming Highway Patrol (WHP) ensued. Multiple citizens called into dispatch detailing the defendant’s location and that he was brandishing his firearm at citizens on the street. Officers caught up with Kirkendall and deployed a taser to immobilize him. They found a loaded Ruger SR9C 9mm caliber pistol on his person. Kirkendall, a convicted felon is unable to legally possess a firearm. This crime was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, CPD, and WHP. The case was prosecuted by Assistant U.S. Attorney Paige Hammer. Kirkendall was indicted on Nov. 15, 2023, pleaded guilty on July 12, and the sentence was imposed by Chief U.S. District Court Judge Scott W. Skavdahl on Oct. 3, in Casper. Case No. 23-CR-00152
Escape from Custody
Anthony James Kelley, 33, of Gillette, Wyoming, was sentenced to 12 months and 1 day in federal prison for escaping from custody. According to court documents, on March 11, Kelley walked out of the Volunteers of America (VOA), Re-entry Center in Gillette where he was serving a custodial sentence. Kelley knew that if he left the facility without authorization, he would be charged with escape. On March 15, The Evansville Police Department were dispatched to the C’mon Inn in Evansville for a suspicious person. An officer located Kelley and took him into custody. This crime was investigated by the U.S. Marshals Office and the case was prosecuted by U.S. Attorney Mackenzie Morrison. Kelley was indicted on May 16, pleaded guilty on July 16, and Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Oct. 8, in Casper. Case No. 24-CR-0067
llegal Re-entry of a Previously Deported Alien
Tulio Arnulfo Garcia-Salazar, 42, of Morales, Izabel, Guatemala, was sentenced to time served for illegal entry into the United States. According to court documents, on March 19, 2024, Garcia-Salazar was arrested by the Rock Springs Police Department for driving under the influence of alcohol, hit and run, maintaining a single lane, and no insurance. U.S. Immigration and Customs Enforcement (ICE) was contacted. A Deportation Officer processed the defendant and obtained fingerprints matching pre-existing fingerprints in their database indicating Garcia-Salazar was in the U.S. illegally and had not applied for permission to reenter the U.S. after being formally removed in May 2018. ICE investigated the crime. Assistant U.S. Attorney Cameron J. Cook prosecuted the case. U.S. District Court Judge Kelly H. Rankin imposed the sentence on Sept. 30. Case No. 24-CR-00074About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
15 More Defendants Indicted for Meth and Fentanyl TraffickingRead the Press Release
SPRINGFIELD, Mo. – Fifteen more defendants have been indicted by a federal grand jury for their roles in a drug-trafficking conspiracy after law enforcement officers seized 100 pounds of methamphetamine and a kilogram of fentanyl pills hidden in a vehicle being transported from San Bernadino, Cal. to Springfield, Mo.
Stevie Delane Logan, Jr., 34, Daron Cortez Kelly, 36, Damion Williams, 34, Necole Jennings, 47, Osric Rashaad Edwards, 25, Shawn Weston Morris, 54, and Rikkita Charnay Tolbert, 37, all of Parsons, Kan.; William Edward McKinzie, 52, Juston Dean Crane, 39, and Gary Jay Watkins, Jr., 54, all of Joplin, Mo.; James Richard Sharp, 55, of Seneca, Mo., Jon Kurtis Smith, 39, of El Dorado, Kan.; Christuffer Allen Roeder, 28, of Independence, Kan.; William Earl Troester, Jr., 45, of Wichita, Kan.; and Kylei Paige Sullivan, 27, of St. Paul, Kan., were charged in an 18-count second superseding indictment returned under seal by a federal grand jury in Springfield, Mo., on Tuesday, Oct. 1. That indictment was unsealed and made public today following the arrests of all remaining defendants.
The initial indictment in this case charged Dontrell Anthony Powell, 34, and his brother, Dreshawn Powell, 27, both of Springfield, and Willie Murry, Jr., 42, and Mark Monta Logan, 33, both of Parsons, on Feb. 6, 2024. They remain as defendants in this second superseding indictment.
The federal indictment alleges that 17 of the defendants, with the exceptions of Tolbert and Sullivan, participated in a conspiracy to distribute methamphetamine and fentanyl in Greene, Jasper, and Newton Counties, and elsewhere, from Jan. 1, 2022, to April 20, 2024.
The federal indictment also alleges that 14 of the defendants, with the exceptions of McKinzie, Crane, Morris, Sharp, and Watkins, participated in a money-laundering conspiracy.
Several defendants also are charged in various counts related to drug trafficking and illegally possessing firearms.
According to court documents, investigation into the drug-trafficking organization began when a Trooper with the Oklahoma Highway Patrol searched a vehicle on a car hauler at a truck stop in Oklahoma City, Okla., on Jan. 17, 2024. The Trooper found approximately 100 pounds of methamphetamine and two pounds of fentanyl pills hidden in a subwoofer speaker box in the cargo area of the car, a Dodge Magnum. The driver of the car hauler, who was not involved in the drug shipment, agreed to deliver the Dodge Magnum to its destination at a parking lot in Springfield.
Agents with the Drug Enforcement Administration removed the fentanyl pills from the Dodge Magnum and replaced most of the methamphetamine with sham methamphetamine before conducting a controlled delivery of the vehicle the next morning. On January 18, 2024, Dontrell Powell and Dreshawn Powell arrived at the parking lot together in a Mercedes while Murry and Mark Logan arrived together in a BMW. Dontrell Powell met with the driver of the car hauler to sign for the Dodge Magnum and attempted to start the vehicle, but the battery was dead. Murray and Mark Logan helped jump start the Dodge Magnum, and Dontrell Powell drove it out of the parking lot as the other three men followed in their vehicles. Agents followed the three vehicles to Dontrell Powell’s residence, where they were arrested.
Agents also searched Dontrell Powell’s residence and found, in addition to the controlled delivery from the Dodge Magnum, an AM-15 pistol, .223 ammunition, several high-capacity magazines with ammunition, more than $100,000 in cash, and drug paraphernalia. Agents also found a loaded Glock pistol in one of the vehicles, numerous cell phones, four more large subwoofer boxes (two of which contained shards of crystal methamphetamine), and drug paraphernalia.
Following the controlled delivery of the Dodge Magnum, agents obtained a court order authorizing the interception of wire and electronic communications over three cellular phones being utilized by Mark Logan’s brother, Stevie Logan, in connection with his distribution of methamphetamine.
The investigation culminated on April 20, 2024, when Stevie Logan received a call from McKinzie requesting methamphetamine. Stevie Logan directed Kelly and Williams to retrieve methamphetamine from Jennings’ residence in Parsons, Kan. Kelly and Williams picked Stevie Logan up from a gas station in Pittsburg, Kan., and the three men traveled to a hotel in Joplin, Mo. As McKinzie approached the vehicle, all four men were arrested. Agents searched the vehicle and located approximately 10 pounds of methamphetamine inside of a large tub.
Agents also searched McKinzie’s hotel room and located an additional five ounces of methamphetamine and three firearms.
In addition to the two conspiracies, Dontrell Powell is charged with one count of money laundering, one count of possessing a firearm in furtherance of a drug-trafficking crime, and two counts of being a felon in possession of a firearm. Dontrell Powell allegedly possessed an Anderson Manufacturing AM-15 multi-caliber semi-automatic pistol and a Glock .40-caliber semi-automatic pistol on January 18, 2024. Dontrell Powell allegedly possessed another Glock .40-caliber semi-automatic pistol on June 12, 2022. Dontrell Powell is subject to enhanced penalties resulting from a prior felony conviction for possession of dangerous drugs for sale.
Dontrell Powell, Murry, Dreshawn Powell, and Mark Logan are charged together in one count of attempting to possess methamphetamine and fentanyl with the intent to distribute.
Murry and Mark Logan also are charged together in one count of traveling across state lines from Kansas to Missouri with the intent to carry on or facilitate an unlawful activity (possession with intent to distribute methamphetamine and fentanyl).
Stevie Logan, Kelly, Williams, and Jennings are charged together in one count of possessing methamphetamine with the intent to distribute, and McKinzie is charged with one count of attempting to possess methamphetamine with the intent to distribute.
Stevie Logan, Kelly, and Williams are charged together in one count of traveling across state lines from Kansas to Missouri with the intent to carry on or facilitate an unlawful activity (possession with intent to distribute methamphetamine).
McKinzie also is charged with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of being a felon in possession of firearms. McKinzie allegedly possessed an Arcadia Machine & Tool .45-caliber pistol, a Ruger 9mm pistol, and a Sundance .25-caliber pistol on April 20, 2024.
Sharp also is charged with two counts of possessing methamphetamine with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime. Sharp allegedly possessed a Sig Sauer .45-caliber pistol on May 3, 2021.
Crane also is charged with one count of possessing fentanyl with the intent to distribute.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Highway Patrol, the Kansas Bureau of Investigation, the Parsons, Kan., Police Department, the Ozarks Drug Enforcement Team, and the Labette County, Kan., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
8 October 2024
York County Judge Indicted for Fraud, Tampering with A Witness, and Obstruction of JusticeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Steven Stambaugh, age 61, of York, Pennsylvania, was indicted by a federal grand jury in a 31-count indictment with wire and mail fraud, as well as witness tampering and obstruction of justice.
According to United States Attorney Gerard M. Karam, the indictment charges Stambaugh with twenty-six counts of wire fraud, two counts of mail fraud, two counts of tampering with a witness, and one count of obstruction of justice. It is alleged that from March 19, 2020 to on or about May 18, 2020, Stambaugh devised a scheme to defraud the Commonwealth of Pennsylvania to obtain money through materially false and fraudulent pretenses, representations, and promises. The indictment charges that Stambaugh instructed his employees to file and collect unemployment compensation benefits with the Commonwealth of Pennsylvania during the COVID-19 pandemic, while at the same time directing and requiring his employees to continue working for Stambaugh Law, P.C. In furtherance of the scheme to defraud, it is alleged that Stambaugh caused the use of interstate wire communications, as well as the delivery of mail matter via interstate mail deliveries.
The indictment further alleges that beginning in April 2021 through November 2022, Stambaugh attempted to intimidate and corruptly persuade a government witness to offer false testimony before a federal grand jury and to lie to federal law enforcement officers, and also attempted to obstruct justice while serving as a judicial officer for the Pennsylvania Court of Common Pleas for York County.
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.
"As alleged, the defendant orchestrated a scheme that defrauded the Commonwealth of unemployment benefits designed to provide relief amid the COVID-19 pandemic, and to further this fraud, sought to mislead federal investigators," said Wayne A. Jacobs, special agent in charge of FBI Philadelphia. "The FBI will continue to work alongside partners to protect the integrity of these programs, investigate allegations of fraud, and bring those who engage in these schemes to justice."
The charges stem from a joint investigation involving the U.S. Department of Labor – Office of Inspector General (USDOL-OIG), and the Federal Bureau of Investigation (FBI) – Harrisburg. Assistant United States Attorneys Michelle Olshefski and Sean Camoni are prosecuting the case.
The maximum penalty under federal law for mail/wire fraud and witness tampering is 20 years of imprisonment. The maximum penalty for obstruction of justice is 10 years of imprisonment. A term of supervised release follows any term of imprisonment and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Wisconsin Man Charged with Filing False Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 8, 2024, a grand jury returned an indictment charging Vikram Naik with three counts of filing false individual income tax returns, in violation of 26 U.S.C. § 7206(1).
According to the indictment, Naik willfully made and subscribed, under penalties of perjury, individual income tax returns (Forms 1040) for the years 2017, 2018, and 2019. Naik had federal income tax withholding amounts that were substantially less than what he reported on each of the returns he filed with the Internal Revenue Service (“IRS”) and, as a result, he had taxable income and total tax owed greater than he reported. Those returns included over $300,000 in false withholding amounts.
If convicted, Naik faces up to three years in prison on each false return count. The IRS, Criminal Investigation Division, investigated the case, which Assistant United States Attorney John P. Scully will prosecute.
The public is cautioned that an indictment or criminal complaint is merely a charge, and the defendant is presumed innocent until and unless proven guilty.
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For further information contact:
Public Information Officer
Kenneth.Gales@usdoj.gov
(414) 297-1700
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Whatcom County man pleads guilty to domestic violence assault resulting in serious bodily injuryRead the Press Release
Seattle – A 49-year-old member of the Lummi Nation pleaded guilty today in U.S. District Court in Seattle to assault resulting in serious bodily injury, announced U.S. Attorney Tessa M. Gorman. Jason Sieber Sr. was charged federally in February 2024, for the October 20, 2023, assault of his domestic partner. Sieber has been detained at the Federal Detention Center at SeaTac since his arrest in February 2024. He is scheduled for sentencing on December 20, 2024.
According to records filed in the case, Sieber became angry with the victim over the amount of time it was taking for her to cook dinner. He struck her repeatedly in the face and head and kept her from leaving the home to get help. The blows with his closed fist caused the victim to suffer facial fractures, extreme pain, and disfigurement.
The victim reported the assault to Lummi Nation Police a few days after the assault. Sieber was charged in tribal court. The case was ultimately referred to federal prosecutors.
Assault resulting in bodily injury is punishable by up to ten years in prison. U.S. District Judge Ricardo S. Martinez will determine the appropriate sentence after considering sentencing guidelines and other factors.
The case was investigated by the Lummi Nation Police Department and the FBI as part of the Safe Trails Taskforce.
The case is being prosecuted by Assistant United States Attorneys J. Tate London and Erika Evans. Mr. London serves as a Tribal Liaison for the U. S. Attorney’s Office, Western District of Washington.
Vallejo Man Sentenced to 5 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Raykheem Andrew Guthery, 32, of Vallejo, was sentenced today to five years in prison for possessing ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 9, 2022, law enforcement officers conducted a vehicle stop on Guthery for driving a car without license plates. Guthery pretended to be someone else, claimed he was not on parole or probation, and denied being armed. In fact, Guthery was on probation for felony assault and had a firearm loaded with an extended magazine concealed on his person. Officers discovered the firearm during Guthery’s arrest. The firearm was a non‑serialized, privately manufactured firearm, known as a “ghost gun.” It was loaded with one round of .40-caliber ammunition in the chamber and another 17 rounds in an extended magazine.
Guthery is prohibited from possessing firearms or ammunition because he has been convicted of at least three felonies, including a 2016 felony conviction for forcible assault likely to cause grave bodily injury. He was also prohibited from possessing firearms or ammunition at the time of this offense because he was then the subject of a domestic violence protective order issued on April 15, 2021, by the Superior Court of California, Solano County.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney’s Office for the Northern District of Georgia Alerts Public to Charity Scams in Wake of Hurricane HeleneRead the Press Release
ATLANTA – U.S. Attorney Ryan K. Buchanan advises the public to be cautious about hurricane relief fraud in the wake of Hurricane Helene.
“Natural disasters unfailingly prompt members of our communities to respond with an outpouring of compassion and support for impacted family members, neighbors, friends and strangers,” said U.S. Attorney Ryan K. Buchanan. “Unfortunately, these occurrences also attract scammers who capitalize on such calamities to exploit affected fellow citizens when they are most vulnerable. By this public notice, we do not aim to deter you from offering assistance but caution you to do so with the awareness of how to detect and avoid common charity scams.”
On September 26, 2024, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation in that area and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters target victims of such storms along with citizens across the country who want to do what they can to assist individuals affected by these natural disasters. Unfortunately, criminals exploit these incidents for personal gain by sending fraudulent communications through email or via social media and by creating deceptive websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, email, door-to-door collections, flyers, mailings, and other similar methods. Before donating to benefit victims of Hurricane Helene, individuals should follow these and other guidelines:
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions as reputable charities do not use such tactics.
- Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
- Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
- Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in “.org” rather than “.com.”
- Be cautious of emails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney's Office Announces Sentencing of Albuquerque Man for Violent Crime SpreeRead the Press Release
ALBUQUERQUE – An Albuquerque man has been sentenced to 200 months in prison for a violent crime spree that included a series of armed robberies and assaults across New Mexico, culminating in the carjacking and shooting of a 62-year-old veteran.
There is no parole in the federal system.
According to court documents, on November 12, 2021, Procopio Montoya Atkinson, 26, robbed a Dollar General store in Northwest Albuquerque. Atkinson feigned a cash purchase of flavored water, and when the female cashier opened the register to give him change, he reached over the counter to take the money. When she shut the drawer, Atkinson escalated his actions by walking behind the counter and demanding money while pointing a firearm at her. Atkinson discharged the firearm toward the ceiling, causing panic. The manager complied with Atkinson’s demands as he began a verbal countdown. Ultimately, Atkinson took $192 from the register and fled.
The crime spree continued on December 6, 2021, when Atkinson shoplifted clothing and an entire display case full of pocketknives from a Love's Travel Stop in Belen. Atkinson was confronted by two female employees outside and physically assaulted them while attempting to hit them with his vehicle. Just three days later, on December 9, Atkinson assaulted another female employee at a Walmart in Belen after loading a cart with clothing and tools.
Atkinson approaching the display case full of pocketknives.
Atkinson picking up the display case full of pocketknives.
The discarded display case.
On December 13, law enforcement obtained an arrest warrant for Atkinson related to the armed robbery from November 12. On December 17, members of the U.S. Marshals Service fugitive task force established surveillance on his home for his arrest. As they moved in to apprehend him at a gas station, Atkinson displayed awareness of their presence by retrieving binoculars to monitor law enforcement movements. Atkinson drove toward one task force officer while pointing a pistol at him before abandoning his pursuit when backup arrived.
The crime spree culminated on December 20 when John Doe 3 was driving alone in his vintage Chevrolet truck with his wife and daughter following behind in another vehicle. They were stopped at a traffic light when Atkinson approached John Doe 3’s wife and daughter with a pistol and demanded they exit their vehicle. After they refused to open their doors, Atkinson turned his attention to John Doe 3's truck, a beautifully restored ’62 Chevrolet. He opened the passenger door and, after a brief struggle, shot John Doe 3 in the back.
A photo of the scene.
Responding officers successfully blocked the truck in following an unsuccessful escape attempt by Atkinson and John Doe 3 was airlifted to the hospital.
John Doe 3 survived his injuries, but the emotional toll of that day has left lasting scars; he experiences ongoing pain and anxiety whenever near that intersection or driving through similar situations, and his beloved truck now sits dormant.
Upon his release from prison, Atkinson will be subject to five years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the United States Marshal Service, Belen Police Department, Bernalillo County Sheriff’s Office, Albuquerque Police Department, Rio Rancho Police Department and the New Mexico State Police. Assistant U.S. Attorney Timothy Trembley is prosecuting the case.
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U.S. Attorney ’s Office and FBI Charge Arizona Woman with Child AbuseRead the Press Release
ALBUQUERQUE – An Arizona woman has been charged by indictment on multiple counts of abandonment and abuse of a child for allegedly placing three girls in a dangerous situation earlier this year.
Avedale Johnson, 40, an enrolled member of the Navajo Nation, appeared before a federal judge last week and was placed on conditions of release pending trial.
According to the indictment, on May 4, 2024, Johnson is accused of putting Jane Doe 1, Jane Doe 2, and Jane Doe 3—three children under the age of 18—at significant risk of harm by placing them in a situation that could have endangered their lives and health.
If convicted, Johnson faces up to three years in prison.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
View the Indictment (Johnson).pdfAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Dawn N. Ison Alerts Public to Charity Scams in Wake of Hurricane HeleneRead the Press Release
DETROIT – United States Attorney Dawn N. Ison issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of Hurricane Helene.
“In the aftermath of Hurricane Helene, the public should be on guard against disaster fraud schemes,” said U.S. Attorney Dawn N. Ison. “As we often see when natural disasters occur, criminals will target those impacted and concerned citizens ready to lend a helping hand. The Justice Department stands ready to hold those accountable who perpetrate this type of fraud.”
On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions as reputable charities do not use such tactics.
- Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
- Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
- Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
- Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
U.S. Attorney Alerts Public to Charity Scams in Wake of Hurricane HeleneRead the Press Release
SAN DIEGO – United States Attorney Tara McGrath issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of powerful hurricanes causing devastation on the East Coast.
“During times of crisis, be vigilant, because not all who ask for help have good intentions,” McGrath said. “Be sure to protect yourself by verifying before you donate to ensure your generous support reaches those truly in need.”
Hurricane Milton is heading for Florida now, less than a week after Hurricane Helene made landfall in Florida’s Big Bend Region on Sept. 26 and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions as reputable charities do not use such tactics.
- Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
- Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
- Beware of organizations with copy-cat names similar to, but not exactly the same as, those of reputable charities.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
- Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
Two Plead Guilty in Nationwide Marijuana Trafficking and Money Laundering ConspiraciesRead the Press Release
ALBANY, NEW YORK – Lawrence Mumphrey, aka “L,” age 45, of Albany, and Niara Banks, aka “Nie,” age 32, of Troy, New York, pled guilty today to offenses related to their involvement in nationwide marijuana trafficking and money laundering conspiracies.
United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Mumphrey and Banks admitted to being members of a marijuana and tetrahydrocannabinols (THC) trafficking organization that cultivated marijuana on a commercial scale in Fresno, California, and shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region of New York.
Banks admitted to receiving packages of marijuana shipped by Dwight A. Singletary, II, aka “Nutt” and “Mike Jones,” and McKenzie Merrialice Coles, aka “Kenzie,” from a shipping store in Fresno, Fast Pack & Ship, at her home in Troy and another home in Albany. Banks was notified of the packages of marijuana by Dwight Singletary and David Singletary, aka “DB,” and typically notified David Singletary, who retrieved the packages, when they arrived. Banks also sold marijuana, which she obtained from Dwight and David Singletary.
Between September 2020 and March 2022, Banks received 33 packages containing approximately 133 kilograms (293 pounds) of marijuana at her home in Troy and the other home in Albany.
Banks also admitted to laundering marijuana and THC proceeds for the organization by purchasing cashier’s checks with cash drug proceeds. Federal law requires financial institutions to complete a currency transaction report for cash transactions over $10,000. To avoid the reporting requirement and otherwise conceal the cash drug proceeds, Banks purchased seven cashier’s checks in amounts slightly below the reporting threshold for cash transactions with $65,880 in cash drug proceeds. The cashier’s checks were payable to Dwight Singletary; Dwight Singletary’s company, DAS Empire, Inc.; and a person from whom Dwight Singletary and DAS Empire purchased real estate.
Mumphrey admitted to receiving packages of marijuana shipped from Fast Pack & Ship at his apartment in Albany and to selling marijuana and THC “edibles” for the organization out of a “knock spot” in Troy. In searching the “knock spot” in January 2022, law enforcement discovered 29 pounds of marijuana, which was in several plastic shelves with sticky notes denoting the strain and price of the marijuana, and in a backpack. The “knock spot” also contained $3,953 in cash, several digital scales, a large safe with a bulletproof vest, and a box shipped from Fast Pack & Ship to Mumphrey at his apartment in Albany.
In June 2022, law enforcement executed a search warrant at Mumphrey’s apartment in Albany and discovered, among other things, a dogfood container with approximately eight pounds of marijuana in a room in the basement. In the same room, law enforcement discovered a Ruger model AR-556 5.56x45mm caliber semiautomatic rifle, a 5.56x45mm caliber semiautomatic rifle with no serial number, an Anderson model AM-15 5.56x45mm caliber semiautomatic rifle with no serial number, and a Taurus 9mm caliber pistol with no serial number, and assorted ammunition. Mumphrey possessed the firearms to protect the organization’s marijuana, THC edibles, and drug proceeds, including from potential robbers.
Between February 2020 and June 2022, 74 packages containing approximately 341 kilograms (752 pounds) of marijuana were shipped from Fast Pack & Ship to Mumphrey at his apartment in Albany.
Mumphrey also admitted to laundering drug proceeds for the organization. Between March 2020 and June 2022, Mumphrey purchased 14 cashier’s checks in amounts slightly below the reporting threshold for cash transactions with $132,270 in cash drug proceeds. Mumphrey also gave cash drug proceeds to two other members of the organization for use in purchasing cashier’s checks in amounts slightly below the reporting threshold.
Banks faces up to 20 years in prison on each of the two counts to which she pled guilty, conspiring to distribute marijuana and THC and conspiring to commit money laundering; fines of up to $1 million and $500,000, respectively, on each count; and a term of supervised release of between three years and life.
Mumphrey faces a total of at least 10 years in prison and up to life on the three counts to which he pled guilty, conspiring to distribute marijuana and THC, conspiring to commit money laundering, and possession of firearms in furtherance of a drug trafficking crime; a total of $5.75 million in fines; and a term of supervised release of between four years and life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Banks and Mumphrey were charged in an indictment with Dwight Singletary, David Singletary, Coles, and 19 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Dwight Singletary, David Singletary, and Coles have pled not guilty and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
In addition to Banks and Mumphrey, 14 other defendants, Rosemary Coles, Latrice Mumphrey, Sammy Olague, Victor Turner, Kristle Walker, Ruby Ledesma, Lateek White, Onisha Smith, Jazell Shuler, Earnest Flood, aka “Pop,” Consanga Harris, aka “Sondy,” James Tyrell Daniels, aka “Red” and “Ghost,” LaFay Pearson, aka “Lala,” and Alyssa June White previously pled guilty and are pending sentencing.
The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
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.