Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 July 2024
Bitwise Founders Plead Guilty to $115 Million Fraud SchemeRead the Press Release
FRESNO, Calif. — Irma Olguin, Jr., 43, and Jake Soberal, 38, the founders and leaders of the failed Fresno-based start-up company, Bitwise Industries, pleaded guilty today to one count of conspiring to commit wire fraud and one count of wire fraud, United States Attorney Phillip A. Talbert announced. They admitted to defrauding investors, lenders, and others out of $115,000,000.
According to court records, Olguin and Soberal founded Bitwise in 2013. The company then grew to have three business lines: (1) technology workforce training program, (2) technology consulting service, and (3) a real estate arm that bought, renovated, and leased commercial properties. The company promised to create jobs for underserved groups of people, revitalize blighted urban areas, and show that such a project could be highly profitable.
By early 2022, Bitwise had raised over $75,000,000 through Series A and B investment rounds, and the company had grown to 800 employees and apprentices across multiple offices and states. But the company was not making a significant profit and was running low on funds.
Thereafter, Olguin and Soberal conspired to mislead investors, lenders, and others into believing that Bitwise was excelling when it was instead failing. They fabricated financial information in investor materials and altered and forged other financial records to inflate the company’s revenues, cash balances, and other financial markers.
The following are illustrative examples of Olguin and Soberal’s fraud:
- In a February 2022 presentation and July 2022 prospectus that were circulated to investors, Olguin and Soberal represented that Bitwise’s cash balance was over $44,000,000 as of the end of 2021. They also represented that the company’s revenue was more than $58,000,000. In reality, the company’s cash balance was less than $12,000,000 at that time and its revenue was minimal;
- In June and July 2022, Olguin and Soberal falsely represented to a California-based investment firm that Bitwise had secured a $150,000,000 investment from another, London-based investment firm. This was done to convince the California-based investment firm to purchase several buildings that Bitwise owned. Several months later, Soberal falsely represented to another lender that Bitwise still owned those buildings to get the lender to loan Bitwise millions more dollars;
- In a March 2023 presentation circulated to investors, Olguin and Soberal represented that Bitwise’s cash balance was over $77,000,000 as of the end of 2022. They also represented that the company’s revenue was more than $143,000,000. In reality, the company’s cash balance was less than $5,000,000 at that time and its revenue was minimal;
- Also in March 2023, Olguin and Soberal provided an investor with an altered version of an audit of Bitwise that was previously conducted by an international audit firm. They altered the audit to make it appear as though Bitwise’s revenue was 300% higher than was true;
- Also in March 2023, Soberal represented to a long-time Bitwise employee that the company had sufficient resources on-hand to induce the employee to make a significant loan to the company.
This pattern continued until the end of May 2023 when Bitwise ran out of money and the company collapsed.
As a result of Olguin and Soberal’s false and fraudulent representations, Bitwise received $115,000,000 in investments and loans to which the company was not entitled. The ill-gotten money went towards paying the company’s payroll, outfitting its office spaces, and repaying debts owed to prior investors and lenders, among other business expenses.
Olguin and Soberal admitted that they used their positions as Bitwise’s co-Chief Executive Officers to conceal their fraud from the company’s board of directors and others at the company. They also admitted to using sophisticated means to deceive and cheat investors and lenders out of their money.
This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant United States Attorneys Joseph Barton and Henry Carbajal III are prosecuting the case.
Olguin and Soberal are scheduled to be sentenced on Nov. 6, 2024. They face maximum statutory penalties of 20 years in prison and a $250,000 fine for each of the conspiracy to commit wire fraud and wire fraud counts. That makes for a total maximum penalty of 40 years in prison and a $500,000 fine. They also agreed to pay full restitution. The actual sentences, 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.
Austin Felon Indicted for Alleged Drug Trafficking and Firearm Possession After Ramming Police CruiserRead the Press Release
AUSTIN, Texas – A federal grand jury in Austin returned an indictment charging a felon with three counts related to his alleged drug trafficking and firearm possession.
According to court documents, Cliofa Delacruz, 34, is a four-time convicted felon who was arrested by Austin Police officers after allegedly ramming a law enforcement vehicle while evading. Delacruz is alleged to have possessed methamphetamine and loaded firearm inside his vehicle.
Delacruz is charged with one count of possession with intent to distribute controlled substances, one count of felon in possession of firearm, and one count of possession of firearm in drug trafficking. If convicted, he faces up to 10 years in prison and a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Austin Police Department are investigating the case.
Assistant U.S. Attorney Doug Gardner is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Area Pharmacy Agrees to Resolve Civil Allegations of Improper Dispensing of Controlled SubstancesRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Professional Pharmacy & Convalescent Products, Ltd., a pharmacy that was based in Pottstown, PA, agreed to resolve allegations that it had improperly dispensed opioids and other controlled substances to individuals, and submitted claims to Medicare and Medicaid for those illegally dispensed controlled substances. The settlement resolves the case for a payment of $150,000 and comes after the pharmacy surrendered its DEA registration.
Under the Controlled Substances Act, pharmacies like Professional that are registered with the DEA are permitted to dispense controlled substances only to patients based on a valid prescription. A prescription is valid only when issued for a legitimate medical purpose and in the usual course of professional practice. That legal obligation applies to controlled substances broadly and includes drugs like the opioid oxycodone. The settlement between the United States and Professional resolves allegations that, from June 1, 2018, through March 4, 2024, Professional illegally dispensed controlled substances like oxycodone without satisfying these important legal obligations, and illegally submitted claims to Medicare and Medicaid for the drugs. The settlement agreement covers liability under the Controlled Substances Act, which imposes civil penalties for illegal controlled substance prescriptions, and the False Claims Act, which imposes civil damages and penalties for false claims to the federal government.
“Federal law imposes obligations on pharmacies like Professional to only dispense controlled substances when appropriate,” said U.S. Attorney Romero. “The law is critical in protecting our community from the dangers of the opioid epidemic. This settlement provides yet another example of my office’s commitment to pursuing misconduct at every level in the opioid supply chain.”
“Professional Pharmacy exhibited a continued disregard of their obligations under the Controlled Substances Act by illegally dispensing powerful controlled substances like oxycodone over a several year period,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Pharmacies are entrusted with properly dispensing controlled substances in their care.”
“Pharmacies are responsible for all claims they submit to Medicare and Medicaid,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services Office of the Inspector General. “HHS-OIG, DEA, and the U.S. Attorney’s Office will work together to ensure opioids are dispensed properly and that taxpayer dollars are only spent on bona fide pharmacy claims.”
The case was investigated by the Philadelphia Field Division of the DEA and HHS-OIG. The civil investigation and settlement were handled by Assistant United States Attorney Anthony D. Scicchitano and Auditors Denis Cooke and Dawn Wiggins.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Note: Professional Pharmacy of Pottstown, PA, has no affiliation with Pottstown Pharmacy.
Arapahoe County Man Sentenced to Four Years in Prison in Connection with Robbery of Mail CarrierRead the Press Release
DENVER – The United States Attorney for the District of Colorado announces that Dravell Emon Ross, 28, of Arapahoe County, was sentenced to four years in prison after being pleading guilty to one count of conspiracy to commit robbery and one count of mail theft.
According to the facts within the parties’ plea agreement, in September of 2023, Ross and two other individuals committed a strong-arm robbery of a postal carrier while she was on duty in her mail truck taking her lunch break. Ross and the other individuals attempted to obtain a universal mailbox key to access community mailboxes. The men were unable to steal the universal key, but did steal various pieces of mail, packages, and a postal scanner. The postal carrier suffered minor injuries as a result of the robbery. The other suspects in this case have not yet been charged.
“Mail theft is an all-too-common occurrence in our communities,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Our office is focused on keeping our communities safe and prosecuting these crimes to the fullest extent of the law.”
“The United States Postal Inspection Service will not tolerate violence against any U.S. Postal Service employees or theft of the U.S. Mail,” said Inspector in Charge Bryan Musgrove of the Denver Division of the United States Postal Inspection Service. “Postal Inspectors will relentlessly pursue these offenders and ensure they are held responsible for their crimes.”
The defendant was sentenced on July 12, 2024, by Judge Charlotte N. Sweeney.
The case was investigated by the United States Postal Inspection Service. The prosecution was handled by Assistant United States Attorney Tim Neff.
Alabama Man Sentenced to Nearly Five Years in Federal Prison for Setting Fire to his Father’s Connersville Home, Killing Family’s Dog and CatRead the Press Release
INDIANAPOLIS- Tommy Lee Harrison Sr., 34, of Birmingham, Alabama, has been sentenced to 57 months in federal prison, followed by two years of supervised release, after pleading guilty to crossing state lines to commit arson.
According to court documents, on October 28, 2021, Harrison left Birmingham, Alabama, with the intent to travel to Connersville, Indiana to set fire to the home where Harrison’s father lived with his wife, children, and the family’s pets. During the nearly eight-hour drive, Harrison stopped at a Walmart in Elizabethtown, Kentucky and purchased a can of black spray paint.
At 1:40 am on October 29, 2021, Harrison arrived at his father’s Connersville home. Video surveillance from the area showed Harrison parking next door to the victim’s house, exiting the vehicle, placing a container on the ground, and driving away. Harrison returned approximately twenty minutes later, and repeatedly drove around the residence for approximately twenty minutes until he backed his car into the yard.
Over the next hour, Harrison used gasoline to light the inside and outside of his family’s home on fire, destroying their master bedroom, rendering the bedrooms of the family’s children unlivable, and killing two of the family’s beloved pets, a cat and a dog. Harrison also used the spray paint he purchased to deface the property with a racial slur. Harrison departed the scene of the crime and returned to Alabama, where he was later arrested.
“This defendant’s actions had a devastating impact not only on the immediate victims, but on the community of Connersville as well. His actions uprooted a family, destroyed their peace of mind, and shook the small town in which his father was a prominent community leader,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Crossing state lines to commit a violent crime is a serious offense that merits a serious federal prison sentence. Thanks to the talents and persistence of investigators at the FBI, the Indiana Fire Marshal’s Office, and our federal prosecutor, this arsonist was successfully identified and held accountable.”
The Federal Bureau of Investigation and Indiana State Fire Marshal’s Office investigated. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson.
U.S. Attorney Myers thanked Assistant U.S. Attorney Bradley P. Shepard, who prosecuted this case.
###
Acupuncturist and Acupuncture Clinic Ordered to Pay $2.3 Million to Resolve Civil False Claims Act AllegationsRead the Press Release
AUSTIN, Texas – U.S. District Judge Robert Pitman has ordered an Austin acupuncturist, Dongxin Ma, and his clinic, Ma Acupuncture Center PC, to pay $2.3 million to the United States under the False Claims Act.
The order enforces a mediated settlement resolving allegations that Dr. Ma and his clinic submitted inflated bills to the U.S. Department of Veterans Affairs (VA) for acupuncture services provided to veterans under the VA’s community care program. Specifically, the United States’ lawsuit alleged that Dr. Ma billed the VA for 60 minutes of one-on-one personal contact for each veteran he treated despite spending no more than 15 minutes with any patient. According to the government’s complaint, Dr. Ma billed as many as 61 hours of one-on-one contact with veterans in a single day.
“Healthcare providers that treat our nation’s veterans must be held to the highest standards,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This office is committed to holding accountable any provider that defrauds a VA health benefits program.”
“This civil settlement is a testament to the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office for their efforts in this case.”
The United States’ lawsuit is captioned United States v. Dongxin Ma, et al., Civil Action No. 1:22-cv-00145-RP (W.D. Tex.). The United States was represented by Assistant U.S. Attorneys Thomas Parnham and Liane Noble.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
###
16 July 2024
Youth Sports Coach Sentenced to 140 Months for Seeking Sex with TeenRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a former youth sports coach to 140 months in prison for trying to have sex with a 13-year-old girl.
On Sept. 24, 2023, Trevor White sent a text to a 13-year-old girl that he knew. White was 41 at the time. He asked for her photo, and in a series of messages about her clothing and their past interactions, probed for a “positive response” from the victim, his plea agreement says. He ended the conversation by sending her a photo of himself shirtless.
The teen reported the suspicious conversation to her parents, who contacted St. Louis County police. The teen’s parents allowed a detective to use her phone, assume her identity and continue the conversation. Over several days, White became increasingly sexually explicit and sought to arrange a meeting so they could engage in sex. He also requested sexually explicit photos of the “teen” and sent two explicit images to her.
On September 29, St. Louis County detectives arrived at White’s home to interview him. White admitted participating in the text conversations, admitted asking the teen for a photo of herself engaging in sexually explicit conduct and admitted arranging to pick her up and take her to a park to have sex with her.
White, of Fenton, Missouri, pleaded guilty in U.S. District Court in St. Louis in April to attempted coercion and enticement of a minor.
In a letter to the court, the teens’ parents said White obtained the teen’s contact information when he bought items for a fundraiser. “Within hours of that exchange, he had already begun to contact her via text message in ways that were inappropriate, predatory, and grotesque,” they wrote. “As you might imagine, she was very shaken and deeply troubled by this, and continues to be.”
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney Michael Hayes prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Worcester Man Sentenced for Fentanyl and Firearm ChargesRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Boston for conspiring to distribute fentanyl and being a felon in possession of firearms and ammunition.
Yoelfi Feliz, 27, was sentenced by U.S. District Court Judge Leo T. Sorokin to 74 months in prison, to be followed by four years of supervised release. In November 2023, Feliz was charged by criminal complaint with one count of conspiring to distribute and possess with intent to distribute controlled substances and being a felon in possession of a firearms and ammunition.
Between June 2023 and October 2023, Feliz sold over 700 grams of fentanyl to a cooperating witness in Lawrence. Feliz also sold the cooperating witness two pistols, an AR-15 rifle, an AK-47 rifle and two privately made firearms, also known as “ghost guns,” along with ammunition.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Massachusetts Department of Correction; and the Lawrence, Methuen and Worcester Police Departments. Assistant U.S. Attorney Philip C. Cheng of the Organized Crime and Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. 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.
West Plains Sex Offender Sentenced for Possessing Computer-Generated Images of Child Sexual AbuseRead the Press Release
SPRINGFIELD, Mo. – A West Plains, Mo., man who is a registered sex offender was sentenced in federal court today for possessing hundreds of computer-generated images of child sexual abuse.
Dace Allen Doverspike, 24, was sentenced by U.S. District Judge Roseann A. Ketchmark to 10 years in federal prison without parole. The court also sentenced Doverspike to 15 years of supervised release following incarceration.
Doverspike, who has a prior federal felony conviction for possessing child pornography, pleaded guilty on Aug. 29, 2023, to possessing an obscene visual representation of the sexual abuse of children.
Doverspike’s probation officer seized his cell phone on May 10, 2023, during a home visit as part of the conditions of his supervised release. The officer discovered multiple images and videos of pornography, including computer-generated images and videos of child pornography, and transferred the phone to Homeland Security Investigations for examination and further investigation. A task force officer examined a microSD storage device that had been inserted into the phone, which contained 255 computer-generated image files that depicted child sexual abuse.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Washington State Man Faces Federal Charges for Damaging Two Portland Area Energy FacilitiesRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a Tacoma, Washington, man with damaging two Portland area energy facilities.
Zachary Rosenthal, 33, has been charged with three counts of damaging an energy facility.
According to the indictment, on November 24 and 28, 2022, Rosenthal is accused of knowingly and willfully damaging two energy facilities—the Ostrander Substation in Oregon City, Oregon and the Sunnyside Substation in Clackamas, Oregon—with the intent of interrupting or impairing the function of both facilities. The indictment further alleges that Rosenthal caused damages exceeding $100,000 to the Ostrander Substation and $5,000 to the Sunnyside Substation. Both facilities are involved in the transmission and distribution of electricity.
A single accomplice, Nathaniel Adam Cheney, 30, of Centralia, Washington, is named alongside Rosenthal in charges stemming from the November 28, 2022, damage to the Sunnyside Substation.
A second indictment was also unsealed today charging Rosenthal with stealing firearms from a federal firearms licensee and illegally possessing firearms as a convicted felon. According to this indictment, in January 2023, Rosenthal is alleged to have stolen 24 firearms he was restricted from possessing from a federal firearms licensee in the Portland area.
Rosenthal made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned on both indictments, pleaded not guilty to all charges, and detained pending further court proceedings.
On April 10, 2023, Cheney made his first appearance in federal court. He was arraigned, pleaded not guilty, and released on conditions pending a two-day jury trial currently scheduled to begin on August 20, 2024.
Damaging an energy facility and causing more than $100,000 in damages is punishable by up to 20 years in federal prison and three years’ supervised release. Damaging an energy facility and causing more than $5,000 in damages is punishable by up to five years in federal prison and three years’ supervised release.
This case was investigated by the FBI with assistance from the Clackamas County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It is being prosecuted by Parakram Singh, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
University of Maryland, College Park Agrees to Pay $500,000 to Resolve Allegations That It Failed to Disclose Foreign Research Support in Federal Grant ProposalsRead the Press Release
Baltimore, Maryland – The University of Maryland, College Park (UMD) has agreed to pay $500,000 to resolve allegations that it violated the False Claims Act by failing to disclose current and pending support from foreign sources for faculty members who were principal investigators (PI) or co-PIs of federal research grant proposals.
The settlement relates to research grant support UMD received from the National Science Foundation (NSF) and the Department of the Army between 2015 and 2020. These agencies require grant applicants to disclose all current and pending support received by the institution, its PIs, and co-PIs. Current and pending support is defined as all resources from whatever source — including foreign government sources — that are made available to researchers in support of and/or related to their research endeavors. The agencies rely on the accuracy of these disclosures, in part, to avoid funding duplicative research projects and to ensure their highly competitive grants are awarded only to PIs who demonstrate they have the time and ability to perform the planned work. Non-disclosure of required information can result in missed opportunities for other applicants to receive funding for their own research.
This investigation began as a proactive initiative spearheaded by the NSF Office of Inspector General (OIG) to determine if foreign gifts and contracts subject to Section 117 of the Department of Education’s Higher Education Act of 1965 were also being disclosed in federal grant proposals, as required.
The United States alleged UMD knowingly failed to disclose current and pending foreign funding that three UMD researchers had sought and received, in five research grant proposals submitted to the NSF and Army. Specifically, the United States alleged UMD failed to disclose to NSF gift funding from Huawei Technologies Co., Ltd. to a PI for research in “high energy density FeF3 conversion cathode materials and Li metal anodes.” Additionally, the United States alleged UMD failed to disclose to the NSF and Army grant funding to two other PIs from Taobao (China) Software Co., Ltd. (Alibaba), titled, “Large-Scale Behavior Learning for Dense Crowds”, and “Cyber-Manufacturing of Customized Apparel.”
“Complete and accurate disclosures are essential to federal agencies that make decisions on awarding federal grants,” said Erek L. Barron, United States Attorney for the District of Maryland. “Those individuals and universities that knowingly fail to do so skew the grant awarding process in their favor and will be held accountable.”
“NSF plays a major role in the U.S. research enterprise, providing about 25% of all Federal support to America’s colleges and universities for basic research. Lack of institutional oversight of individuals receiving Federal funds poses a serious risk to the success of that enterprise. This investigation was one of NSF OIG’s proactive efforts focused on determining compliance with critical grant terms and conditions, including mandatory disclosures. As this case demonstrated, the failure of institutional oversight can foster noncompliance and present significant challenges to the integrity of the Federal research funding process,” said NSF Inspector General Allison Lerner. “We thank the U.S. Attorney’s Office for the District of Maryland and our investigative partners for their work in protecting federally funded research.”
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the District of Maryland, with assistance from the NSF OIG and the Department of the Army Criminal Investigation Division.
The matter was investigated by Assistant U.S. Attorney Thomas F. Corcoran for the District of Maryland.
##
U.S. files Civil Forfeiture Action to Recover Cryptocurrency Worth $2.5 Million for Victims of Pig Butchering SchemeRead the Press Release
WASHINGTON –The U.S. Attorney’s Office for the District of Columbia filed a civil forfeiture action today to recover cryptocurrency seized by the FBI from perpetrators abroad. The cryptocurrency consists of proceeds from crypto confidence schemes, commonly referred to as “pig butchering,” targeting United States citizens through an investment scam. Specifically, the government seeks to forfeit 2,546,415.01 USDT Coin (USDT) seized from two accounts controlled by a perpetrator in Thailand. This cryptocurrency has a current estimated value of approximately $2,546,415.01.
U.S. Attorney Matthew M. Graves and Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office made the announcement.
“Our office will find and hold accountable criminal organizations – whether they operate within the United States or outside of if – that use fraudulent investment schemes like ‘pig butchering’ to defraud victims in the U.S.,” said U.S. Attorney Graves. “This forfeiture action demonstrates that scammers cannot hide their illegal activity by using cryptocurrency and engaging in complicated transactions: we will find them, seize their illegal proceeds, and get money back to the victims.”
“The rate at which bad actors are using elaborate pig-butchering scams to defraud innocent people is despicable,” said FBI Special Agent in Charge Moy. “The FBI and our law enforcement partners continue to evolve investigative techniques to thwart the progression of this threat and use all available resources to ensure we disrupt and dismantle organizations responsible for contributing to these crimes.”
In a pig-butchering scheme, scammers obtain funds from victims using fraudulent and manipulative tactics. The scammer establishes a level of trust with a victim in online communications and then entices the victim into investing in a fraudulent cryptocurrency scheme. Often the victim is enticed to make additional payments before realizing they are a victim of fraud. The “butchering” or “slaughtering” of the victim occurs once the victim’s assets, or funds, are stolen by the criminal, or criminals, ultimately causing the victim financial and emotional harm.
Civil forfeiture allows the United States to seize assets from fugitives and perpetrators abroad. In this case and others, the Department of Justice uses asset forfeiture to punish and deter criminal activity by depriving criminals of property used in or acquired through illegal activities; to promote and enhance cooperation among federal, state, local, tribal, and foreign law enforcement agencies; and to recover assets that may be used to compensate victims when authorized under federal law. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims. The United States is committed to seizing assets from perpetrators at home and abroad, to holding criminals accountable to the fullest extent of the law, and to making victims whole.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams, and “pig butchering” fraud scams – should contact the FBI’s Internet Crime Complaint Center at https://www.ic3.gov.
The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Rick Blaylock, Jr. of the United States Attorney’s Office for the District of Columbia along with Trial Attorneys Jonas Lerman and Stefanie Schwartz of the Department of Justice Criminal Division Computer Crime & Intellectual Property Section’s National Cryptocurrency Enforcement Team. Paralegal Gina Torres is providing valuable assistance. FBI Boston, FBI San Diego, and FBI Bangkok with cooperation from the Royal Thai Police, are assisting with the case.
The details contained in the civil forfeiture complaint are allegations, and the United States of America proudly bears the burden of proof.
U.S. Attorney's Office Secures Guilty Plea from Recidivist Offender in Santa Fe Drug Trafficking CaseRead the Press Release
ALBUQUERQUE – A repeat offender from Espanola pleaded guilty in federal court to federal drug trafficking charges.
According to publicly available court documents, on February 23, 2022, while on probation, Jeremy Isaac Lopez, 29, committed an armed robbery in Santa Fe County, New Mexico. He was subsequently charged and placed on house arrest with GPS monitoring as part of his pretrial release conditions.
On March 30, 2023, a bench warrant was issued for Lopez after he intentionally removed his GPS ankle monitor.
On April 19, 2023, Lopez was located and apprehended at the Cities of Gold Casino in Santa Fe, New Mexico, by the Pueblo of Pojoaque Tribal Police Department. During the arrest, officers discovered Lopez was in possession of multiple controlled substances, including:
- Heroin
- More than 5 grams of methamphetamine
- Over 40 grams of a mixture containing fentanyl.
According to public records, Lopez was subsequently convicted by the State of New Mexico for the armed robbery.
Lopez will remain in custody pending sentencing, which has not been scheduled.
At sentencing, Lopez faces up no less than five years and up to 40 years in prison followed no less than four years and up to lifetime of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Pueblo of Pojoaque Tribal Police Department, Chief Freddie Trujillo of the Pojoaque Tribal Police Department, and the Espanola Police Department. Assistant U.S. Attorney Robert James Booth II is prosecuting the case.
# # #
U.S. Attorney's Office Secures Conviction Against Repeat Domestic Violence OffenderRead the Press Release
ALBUQUERQUE – A Bosque Farms man pleaded guilty in federal court to domestic assault by a habitual offender.
According to publicly available court documents, on August 9, 2022, Daniel Vincent Olguin, 37, an enrolled member of the Pueblo of Isleta, assaulted his girlfriend, Jane Doe, by striking her in the back of the head with his hand. Olguin was previously convicted of assaulting his intimate partner in 2012 and 2016.
The Court ordered that Olguin remain in custody pending sentencing, which has not been scheduled.
At sentencing, Olguin faces up to 10 years in prison. Upon his release from prison, Olguin will be subject to up to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Isleta Police Department investigated this case. Assistant United States Attorney Robert James Booth II is prosecuting the case.
View the Plea Agreement# # #
U.S. Attorney and FBI Charge Kirtland Man Following Violent AltercationRead the Press Release
ALBUQUERQUE – A Kirtland man was charged by criminal complaint with assault with a dangerous weapon and carrying a firearm in furtherance of a violent crime after allegedly attacking his parents with a handgun at their home on the Navajo Nation reservation.
Jerome Weaver, 21, an enrolled member of the Navajo Nation, appeared before a federal judge today and will remain in custody pending trial, which has not been scheduled.
According to the criminal complaint, on July 9, 2024, Weaver allegedly assaulted his parents at their home on the Navajo Nation reservation near Shiprock. Weaver is accused of striking his father multiple times with a handgun, causing injuries. He also allegedly choked his mother and held her at gunpoint. Weaver’s father was transported to the Northern Navajo Medical Center where he was treated for injuries to his face.
If convicted of the current charges, Weaver faces from seven years to life 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 Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
View the Criminal ComplaintA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
# # #
U.S. Attorney and FBI Announce Federal Charges Against Zuni Man After Armed Standoff Ends in Shooting at Law EnforcementRead the Press Release
ALBUQUERQUE – A Zuni man was charged by criminal complaint following an hours-long armed standoff with law enforcement, during which he fired multiple shots at FBI agents and tribal police officers responding to a domestic disturbance call on the Zuni Pueblo reservation.
Eric Bowannie, 26, an enrolled member of the Zuni Nation, appeared before a federal judge today and will remain in custody pending trial, which has not been scheduled.
According to the criminal complaint, on July 6, 2024, a family disturbance in Zuni, New Mexico escalated into a standoff between law enforcement and Bowannie.
Bowannie allegedly barricaded himself inside a residence and fired upon Zuni Police Department officers outside the home. When more officers responded to the scene, Bowannie reportedly charged at them with an ax before retrieving a shotgun from a nearby bedroom and shooting at the officers.
Agents from the FBI responded to the scene and ordered Bowannie to exit the residence with his hands up, but he refused to comply.
Throughout the standoff, Bowannie moved between the front door and windows, firing multiple rounds. He was also observed at the back of the residence holding a rifle.
Eventually, Bowannie crawled out of the back of the residence and was spotted approximately a quarter mile away attempting to flee. He surrendered when given commands by local law enforcement.
A search of the residence recovered 57 .22 caliber casings and 5 spent shotgun shells both inside and outside the home.
In a subsequent interview, Bowannie admitted he was not supposed to possess firearms due to active felony warrants. He stated his initial plan was "suicide by cop" but changed his mind after speaking with his "baby mama." Bowannie also admitted to firing shots at FBI agents and considering shooting at a police officer before ultimately deciding to surrender.
If convicted of the current charges, Bowannie faces up to 27 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 Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorneys Ry Ellison and Kirk Williams are prosecuting the case.
View the Criminal ComplaintA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
# # #
U.S. Attorney Announces Law Enforcement Actions Directed at Fentanyl Trafficking in Santa Cruz CountyRead the Press Release
SAN JOSE – The U.S. Attorney’s Office for the Northern District of California has filed a series of federal criminal complaints charging three defendants with possession with the intent to distribute fentanyl in Santa Cruz County, announced United States Attorney Ismail Ramsey and Drug Enforcement Administration (DEA) Special Agent in Charge Brian Clark. The complaints have been filed as part of a law enforcement operation focused on investigating and prosecuting fentanyl traffickers and illegal open-air fentanyl drug markets in the Santa Cruz area.
“The dramatic increase in the use of fentanyl in the last five years has destroyed countless lives in and around Santa Cruz County. We stand prepared to work with our federal and local law enforcement partners to address the damage being done to our communities,” said U.S. Attorney Ramsey. “We will seek to bring to justice the purveyors of this poison in our neighborhoods – if you are considering selling fentanyl in Santa Cruz, it is time to think again.”
“The dangerous shift from plant-based drugs to synthetic has created the deadliest drug threat facing our nation, fentanyl. This insidious drug has provided the fuel for 70% of the poisoning deaths last year and requires a multi-agency approach to save lives,” said DEA Special Agent in Charge Brian Clark. “DEA will do everything in our power to prevent those peddling poison in Santa Cruz from destroying more lives.”
“The impacts we’ve seen from fentanyl in our community have been devastating and unlike any drug I’ve seen in my 36 years in law enforcement,” said Santa Cruz County Sheriff Jim Hart. “The surge in overdose deaths has shattered families and left us facing an unprecedented public health crisis. By establishing our Fentanyl Task Force and forming these crucial partnerships with state and federal agencies, we are dedicated to holding those who distribute this poison accountable. This should serve as a message to those who are choosing to sell drugs in our community that we are not taking this lightly.”
According to the filed criminal complaints, the distribution of fentanyl has fueled a dramatic increase in overdose deaths over the last years. According to these documents, 133 people died of fentanyl-related overdoses in Santa Cruz County in 2023. The County’s population was approximately 261,547. By contrast, in 2019, Santa Cruz County experienced 5 fentanyl-related overdose deaths.
The defendants named in these complaints are Miguel Geronimo, 30, Jesus Nunez Martinez, 49, and Oscar Angel Alvarez, 28. A separate criminal complaint has been filed against each defendant.
According to the complaint filed against Geronimo, on May 1, 2024, shortly before noon, detectives from the Santa Cruz County Sheriff’s Office were patrolling the area of 115 Coral Street in Santa Cruz that is known to be a common drug-trafficking area. The detectives observed multiple persons entering and exiting a van, none spending more than a couple of minutes in the van. The deputies approached and allowed a drug-sniffing dog to circle the vehicle. The dog positively alerted to the van, indicating the presence of certain narcotics. In the van, the detectives encountered Geronimo, who was lying down in the back-passenger section of the van, and another person who was in the front passenger seat. Detectives searched the van and found approximately 86.6 grams of fentanyl, sales paraphernalia, and over $3,300 in cash. Geronimo is charged with possession with intent to distribute fentanyl.
According to the complaint filed against Martinez, on February 9, 2024, detectives with the Santa Cruz County Sheriff’s Office spotted Martinez driving with a suspended driver’s license and expired tags. The complaint alleges another deputy arrived with a drug-sniffing dog and allowed the dog to circle Martinez’s vehicle. After the dog alerted the deputies to the presence of drugs, deputies searched the car. The complaint details that the investigating deputies found various items, including a distributable amount of actual methamphetamine, sales paraphernalia, and over $750 in cash in the vehicle. Furthermore, more than a month later, on March 29, 2024, sheriff’s detectives conducted a traffic stop on Martinez for failing to stop at a stop sign. Another search of Martinez’s car resulted in the seizure of additional drugs, sales paraphernalia, and over $400 in cash. On this occasion, Martinez possessed a distributable amount of fentanyl and carfentanil, a fentanyl analogue and synthetic opioid that is approximately 100 times more potent than fentanyl. Martinez is charged with possession with intent to distribute fentanyl, carfentanil, and methamphetamine.
According to the complaint filed against Alvarez, the defendant was found in possession of various controlled substances, including fentanyl, in the early morning of February 5, 2024. More specifically, the complaint describes how a sheriff’s deputy was patrolling the area of the 500 block of Water Street in Santa Cruz—an area known for drug trafficking, drug use, and other crime. At approximately 4:12AM, the deputy spotted Alvarez outside the main office of a motel, wearing two backpacks. The deputy approached Alvarez, who claimed he was trying to get a room, although the lobby of the hotel was empty, and Alvarez walked away from the hotel lobby and to the rear of the motel. A later search of Alvarez and the backpacks revealed more than 15 baggies of suspected drugs packaged for sales and more than $2,500 cash. After subsequent testing, the substances in Alvarez’s possession were found to include more than 150 grams of fentanyl, over 95 grams of methamphetamine, and more than 50 grams of cocaine. Additionally, according to the complaint, Alvarez was found with approximately 54.4 grams of p-Fluorofentanyl and 27.781 grams of methamphetamine HCL during a traffic stop on May 29, 2024. Alvarez has been charged with possession with intent to distribute fentanyl, methamphetamine, and cocaine, on February 5, 2024.
In sum, if convicted, the defendants face the following charges:
Defendant
Charges
Maximum Statutory Penalties
Miguel Geronimo
Possession with intent to distribute fentanyl
(21 U.S.C. 841(a)(1) and (b)(1)(C))
20 years of imprisonment; maximum lifetime of supervised release (minimum term of 3 years of supervised release); $1 million fine
Jesus Nunez Martinez
Possession with intent to distribute 5 grams or more of actual methamphetamine
(February 9, 2024)
(21 U.S.C. § 841(a)(1), (b)(1)(B))
40 years of imprisonment (mandatory minimum of 5 years of imprisonment);
maximum lifetime supervised release (mandatory minimum of 4 years of supervised release); $5 million fine
Possession with intent to distribute fentanyl and carfentanil
(March 29, 2024)
21 U.S.C. § 841(a)(1), (b)(1)(C)
20 years imprisonment; maximum lifetime of supervised release (minimum term of 3 years of supervised release); $1 million fine
Oscar Angel Alvarez
Possession with intent to distribute 40 grams or more of fentanyl
(21 U.S.C. § 841(a)(1), (b)(1)(B)(vi))
40 years of imprisonment (mandatory minimum of 5 years of imprisonment); maximum lifetime of supervised release (mandatory minimum 4 years of supervised release); $5,000,000 fine
Possession with intent to distribute 5 grams or more of actual methamphetamine
(21 U.S.C. § 841(a)(1), (b)(1)(B)(viii))
40 years of imprisonment (mandatory minimum of 5 years of imprisonment); maximum lifetime of supervised release (mandatory minimum 4 years of supervised release); $5,000,000 fine
Possession with intent to distribute cocaine
(21 U.S.C. § 841(a)(1), (b)(1)(C))
20 years of imprisonment; maximum lifetime of supervised release (mandatory minimum of 3 years of supervised release); $1,000,000 fine
A criminal complaint merely alleges a crime has been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The three criminal complaints were filed by the U.S. Attorney in partnership with the DEA and based on the invaluable work of the Santa Cruz County Sheriff’s Office. The complaints were unsealed in conjunction with proactive law enforcement action by the DEA, Santa Cruz County Sheriff’s Office, and other federal and local partners to address the growing use of fentanyl in Santa Cruz County. On July 11, 2024, federal and local law enforcement collaborated in a joint street enforcement operation focusing on the open-air fentanyl markets in the Santa Cruz area. This enforcement activity resulted in the seizure of fentanyl, a ghost gun, ammunition, and multiple arrests by state authorities of persons possessing drugs for sale.
Martinez made his initial federal court appearance to face the charges on July 15, 2024, before the Hon. Virginia K. DeMarchi, United States Magistrate Judge for the Northern District of California. Martinez was temporarily ordered detained, and a detention hearing in his case is set for July 19, 2024, at 1:00 p.m. at the United States District Court in San Jose. Neither Alvarez nor Geronimo have made their initial appearances on the above-listed federal charges.
Assistant U.S. Attorneys Johnny E. James, Jr., Jeffrey A. Backhus, and Sarah Griswold are prosecuting the cases with assistance from Elise Etter, Susan Kreider, and Lynette Dixon. These prosecutions are the result investigations by the Santa Cruz County Sheriff’s Office and the DEA, with operational assistance from the Federal Bureau of Investigation and the Santa Cruz Police Department. The U.S. Attorney’s Office thanks the Office of the Santa Cruz County District Attorney for its cooperation in bringing the federal prosecutions of these defendants.
Two Orlando Men Indicted in Gun Trafficking ConspiracyRead the Press Release
Orlando, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Ernesto Vazquez (23, Orlando) and Derick Yamir Perez Diaz (22, Orlando) with federal firearms trafficking related offenses, including conspiracy to traffic firearms, firearms trafficking, and dealing in firearms without a license. If convicted on all counts, Vazquez and Perez Diaz each face a maximum penalty of 15 years in federal prison.
According to the indictment, Vazquez and Perez Diaz engineered a firearms-trafficking conspiracy that resulted in the distribution of over 100 firearms, including machineguns, into the Middle District of Florida, Puerto Rico, and the Dominican Republic. Vazquez and his co-conspirators acquired firearms (pictured below) from private sellers, federal firearms licensees (FFLs), and Chinese manufacturers:
The majority of the transactions occurred in public places. Perez Diaz carried trunks full of firearms to the meeting locations.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a search warrant at Vazquez’s residence. Inside they found multiple firearms, stockpiles of ammunition, and grenades:
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Noah P. Dorman.
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.
Texas Sex Offender Sentenced to 15 years in Prison for Using a Lehigh Valley Minor to Produce Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Daniel Nelson Shuler, 59, of Corsicana, Texas, was sentenced today by United States District Judge Joseph F. Leeson, Jr., to 15 years’ imprisonment, 10 years of supervised release, and a $100 special assessment for using a minor to produce child pornography in November and December of 2022.
In January 2024, Shuler was charged in a one-count information with production of child pornography. On February 27, 2024, Shuler pleaded guilty to the charge and admitted engaging in sexually explicit communications with a minor victim residing in the Lehigh Valley region, during which he caused her to produce images and videos depicting sexually explicit conduct, and also sent the victim sexually explicit images and videos of himself.
“Shuler manipulated and sexually exploited a child, and did so deliberately,” said U.S. Attorney Romero. “Today’s sentence holds him accountable for this reprehensible violation and keeps him from seeking out and victimizing other young girls. The wellbeing of our children is an absolute priority for this office and our law enforcement partners.”
“The cooperation between HSI and the US Attorney’s office continues to serve the American public by enabling time sensitive investigations and deliberate prosecutions of the criminals who harm our children,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “The protection of our most vulnerable citizens is at the heart of our core mission and values.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The case was investigated by Homeland Security Investigations, Allentown Resident Office, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.
Texarkana High School band instructor sentenced to 25 years in federal prison for child exploitation violationRead the Press Release
TEXARKANA, Texas – A Texarkana man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Brandon Neil Sams, 48, pleaded guilty to coercion and enticement of a minor while serving as a band instructor at Texas High School in Texarkana, Texas and was sentenced to 300 months in federal prison by U.S. District Judge Robert W. Schroeder, III, on July 16, 2024.
According to information presented in court, Sams communicated with several of his minor students through social media and messaging applications to persuade, induce, entice, and coerce them to participate in sexual activity. Sams provided his victims with gifts, such as cell phones, clothes, and prepaid credit cards to encourage them to do what he asked of them. After the Texas High police department uncovered Sams’s criminal activity, several victims came forward to explain that they had been victimized by Sams in the past but had been too afraid to come forward about it for fear of backlash.
“We expect teachers to protect and keep their students safe from harm, not to abuse their positions of trust to take advantage of them,” said U.S. Attorney Damien M. Diggs. “Mr. Sams used his access to teenagers to groom them to participate with him in illegal sexual activity. The sentence he received today should serve as a warning to all child predators: we will find you, and you will face justice.”
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Department of Homeland Security-Homeland Security Investigations and the Texarkana, Texas Independent School District. This case is being prosecuted by Assistant U.S. Attorney Robert Austin Wells.
###
Statement of U.S. Attorney Damian Williams on the Convictions of U.S. Senator Robert Menendez and Two New Jersey BusinessmenRead the Press Release
U.S. Attorney Damian Williams said: “Moments ago, a jury convicted Senator Robert Menendez of corruption offenses. This case has always been about shocking levels of corruption. Hundreds of thousands of dollars of bribes, including gold, cash, and a Mercedes-Benz. This wasn’t politics as usual; this was politics for profit. Because Senator Menendez has now been found guilty, his years of selling his office to the highest bidder have finally come to an end. Corruption isn’t costless: it erodes public trust, and it undermines the rule of law. That’s why we’re so committed to fighting it, regardless of political party. I want to thank the career prosecutors and law enforcement agents who meticulously investigated and prosecuted this case. Their work brought this egregious corruption to light. They are the best of the best, and I am enormously proud to serve with them.”
* * *
ROBERT MENENDEZ, 70, of Englewood Cliffs, New Jersey; WAEL HANA, 40, of Edgewater, New Jersey, and originally of Egypt; and FRED DAIBES, 66, of Edgewater, New Jersey, were convicted of the charges listed in the chart below.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by Judge Stein. Sentencing for MENENDEZ, HANA, and DAIBES has been scheduled for October 29, 2024.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the Internal Revenue Service, Criminal Investigation for its invaluable assistance on the investigation and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for its support of the case.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, Paul Monteleoni, Lara Pomerantz, Daniel C. Richenthal, and Catherine Ghosh, and Special Assistant U.S. Attorney Christina Clark, are in charge of the prosecution, with the assistance of Paralegal Specialists Connor Hamill, Rachel Wechsler, and Braden Florczyk.
Count
Defendant(s)
Charge
Potential Maximum Prison Term
1
MENENDEZ
HANA
DAIBES
Conspiracy to commit bribery
Five years
2
MENENDEZ
HANA
DAIBES
Conspiracy to commit honest services wire fraud
20 years
3
MENENDEZ
Conspiracy to commit extortion under color of official right
20 years
4
MENENDEZ
DAIBES
Conspiracy to commit obstruction of justice
5 years
5
MENENDEZ
Bribery – actions to benefit Wael Hana and Egypt
15 years
6
HANA
DAIBES
Bribery – actions to benefit Wael Hana and Egypt
15 years
7
MENENDEZ
HANA
DAIBES
Honest services wire fraud - actions to benefit Wael Hana and Egypt
20 years
8
MENENDEZ
Extortion under color of official right – actions to benefit Wael Hana and Egypt
20 years
9
MENENDEZ
HANA
Honest services wire fraud - actions to benefit Jose Uribe and Uribe’s Associates
20 years
10
MENENDEZ
Extortion under color of official right – actions to benefit Jose Uribe and Uribe’s Associates
20 years
11
MENENDEZ
Bribery – actions to benefit Fred Daibes and Qatar
15 years
12
DAIBES
Bribery – actions to benefit Fred Daibes and Qatar
15 years
13
MENENDEZ
DAIBES
Honest services wire fraud – actions to benefit Fred Daibes and Qatar
20 years
14
MENENDEZ
Extortion under color of official right – actions to benefit Fred Daibes and Qatar
20 years
15
MENENDEZ
HANA
Conspiracy for a public official to act as a foreign agent
Five years
16
MENENDEZ
Public official acting as a foreign agent
Two years
17
MENENDEZ
Conspiracy to commit obstruction of justice
Five years
18
MENENDEZ
Obstruction of justice
10 years
Statement of U.S. Attorney Damian Williams on the Conviction of Miles GuoRead the Press Release
“Miles Guo, an exiled Chinese businessman and purported billionaire, brazenly operated several interrelated fraud schemes, all designed to fleece his loyal followers out of their hard-earned money so that Guo could spend his days in his 50,000 square foot mansion, driving his $1 million Lamborghini, or lounging on his $37 million yacht. Thousands of Guo’s online followers were victimized so that Guo could live of a life of excess. Today, Guo’s schemes have been put to an end. Moments ago, a unanimous jury found Miles Guo guilty of racketeering conspiracy and various securities fraud, wire fraud, and money laundering charges. He faces decades in prison. I commend the career prosecutors of this Office and our law enforcement partners for bringing this case and seizing hundreds of millions of dollars’ worth of fraud proceeds so that justice can be brought to Guo’s victims. This Office will not waver in our dedication to prosecuting malicious and harmful fraud schemes.”
St. Paul Man Pleads Guilty to Armed Robbery of a Tobacco StoreRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to the armed robbery of a St. Paul tobacco store, announced U.S. Attorney Andrew M. Luger.
According to court documents, on February 3, 2024, Derrick Lamont Powell, 33, walked into a tobacco store in St. Paul, pointed a handgun at the clerk, and said, “this is a stickup.” Powell pointed a semi-automatic handgun at the clerk, counted to five, and demanded cash and cigarettes from the clerk. Powell then fled the store with $810 in cash and several packs of cigarettes.
Powell pleaded guilty today in U.S. District Court before Judge Ann D. Montgomery to one count of Hobbs Act Robbery.
This case is the result of an investigation conducted by the FBI and the St. Paul Police Department.
Assistant U.S. Attorney David M. Classen is prosecuting the case.
Springfield Woman Sentenced for Distributing Fentanyl Resulting in DeathRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., woman was sentenced in federal court today for providing the fentanyl that caused the death of a Springfield man.
Whitney R. Weiherer, 38, was sentenced by U.S. District Judge Roseann A. Ketchmark to 12 years in federal prison without parole.
On Sept. 7, 2023, Weiherer pleaded guilty to distributing fentanyl causing death. Weiherer admitted she provided the fentanyl that caused the overdose death of a Springfield resident (identified in court documents as “J.W.”).
Springfield police officers were dispatched to J.W.’s apartment on Oct. 22, 2019, after receiving a call from the apartment complex’s property manager who conducted a wellness check at the apartment. Investigators examined J.W.’s cell phone and found several calls and texts with Weiherer on Oct. 5, 2019. Investigators also found photos of Weiherer that were taken the same day inside J.W.’s apartment; he was wearing the same clothes in the photos as he was found in when his body was discovered.
Investigators determined that J.W.’s death likely occurred within 10 to 15 minutes of taking the fentanyl supplied by Weiherer on Oct. 5, 2019, although his body wasn’t discovered until Oct. 22, 2019.
Weiherer had two prior felony convictions for possession of a controlled substance and was on probation at the time of the federal offense. Two months later, she was again arrested in possession of drugs, leading to her third felony conviction for possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorneys Jessica R. Eatmon and Michael S. Oliver. It was investigated by the Springfield, Mo., Police Department.
Springfield Man Sentenced to 15 Years in Prison for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute methamphetamine in Greene and Polk Counties, Mo., and illegally possessing five firearms.
Jeffrey S. Durbray, 61, was sentenced by U.S. Chief District Judge Beth Phillips on Monday, July 16, to 15 years in federal prison without parole.
On Dec. 19, 2023, Durbray pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing firearms in furtherance of a drug-trafficking crime.
Durbray admitted that he participated in a conspiracy to distribute methamphetamine in Greene and Polk Counties from March 5 to Oct. 10, 2019. Durbray also admitted he possessed five firearms in furtherance of the drug-trafficking conspiracy.
According to court documents, Durbray is responsible for distribution of more than six kilograms of methamphetamine in the Springfield area.
A confidential informant conducted two controlled purchases of methamphetamine from Durbray in April 2019. On April 24, 2019, a deputy with the Greene County, Mo., Sheriff’s Department stopped a Chevrolet Malibu in which Durbray was a passenger because it was missing a front license plate. The deputy searched the vehicle and found two firearms hidden behind a panel under the dash in the front of the center console. Law enforcement officers also found $2,003 in cash and four cell phones inside the vehicle. In the trunk, officers found cocaine, methamphetamine, a third firearm, and an additional $2,050 in cash. Durbray admitted the methamphetamine and the cash was his.
On Oct. 10, 2019, law enforcement officers executed a search warrant at Durbray’s residence. Officers found a Taurus 9mm semi-automatic pistol, ammunition, and 681.6 grams of methamphetamine Officers searched an RV and found a loaded Smith & Wesson .500-caliber revolver, a Ruger .45-caliber semi-automatic pistol with a loaded magazine, a Hi-Point 9mm semi-automatic pistol, a Heritage .22-caliber revolver, ammunition, and $1,423 in cash. In a white Subaru on the property, officers found ammunition and $2,401 in cash. Officers also searched Durbray, who possessed a taser, a bubble pipe, two cell phones and $10,790 in cash.
Under the terms of his plea agreement, Durbray must forfeit to the government the $14,614 in total seized by law enforcement officers at his residence as well as his interest, if any, in the $4,053 seized by law enforcement following the car stop on April 24, 2019.
Durbray was on parole for two previous drug-trafficking convictions at the time of the federal offense.
Durbray is the fourth and final defendant to be sentenced in this case. Zachary L. Day, 39, and Drake A. Cox, 69, both of Springfield, were each sentenced to 12 years in federal prison without parole. William E. Kurek, 52, of Springfield, was sentenced to 10 years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys Jessica R. Eatmon and J.D. Hatcher. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, and the Greene County, Mo., Sheriff’s Department.
Six Men Charged in Federal Complaint Alleging Burglary Spree on Federally Licensed Firearm Stores Across Southern CaliforniaRead the Press Release
LOS ANGELES – Six men are anticipated to make their initial appearances this afternoon, facing a criminal complaint alleging that they carried out a nine-month burglary spree throughout Southern California using stolen vehicles as rams to gain entry into firearms stores and stealing over 300 firearms.
The following defendants, who have been held in state custody, are charged in a criminal complaint with conspiracy to steal firearms from the premises of a federal firearms licensee and are expected to make their initial appearances this afternoon in United States District Court in Santa Ana:
- Cross Arjay Goree, a.k.a. “C3”, 18, of Lake Elsinore;
- Caine Aiden Goree, 22, of Lake Elsinore;
- Kenneth Gilmore III, a.k.a. “Kenny”, 19, of Las Vegas;
- Brendan Markel Hawkins, 19, of Lake Elsinore;
- Calvin Logan Gray, 18, of Murietta; and
- Kendall Eric Johnson, a.k.a. “K3”, 23, of Lake Elsinore
According to an affidavit filed with the complaint, the defendants burglarized or attempted to burglarize nine firearms stores wherein they used stolen vehicles to ram into the storefronts, smashed display cases, and fled with the stolen firearms in other stolen vehicles. As noted in the affidavit, the following firearms stores were involved:
- Chaparral Coin and Gun in Murrieta on October 9, 2023, where 43 firearms were stolen;
- Poway Weapons and Gear in Poway on March 25, 2024, where 78 firearms were stolen;
- Ammo Bros in Ontario on June 12, 2024 (attempted);
- Fallbrook Guns and Ammo in Fallbrook on June 13, 2024 (attempted);
- Firearms Unknown in Oceanside on June 17, 2024, where 33 firearms were stolen;
- Ammo Bros in Riverside on June 18, 2024, where 25 firearms were stolen;
- Camarillo Gun Store in Camarillo on July 1, 2024, where 63 firearms were stolen;
- Smokin Barrel Gun Store in Simi Valley on July 9, 2024 (attempted); and
- Fowler’s Gun Room in Orange on July 13, 2024, where 70 firearms were stolen.
According to the affidavit, the stolen firearms were being sold on the black market and were found in the possession of others in separate criminal investigations.
On July 13, law enforcement executed a federal search warrant at a residence believed to be where Cross, Caine, and Johnson resided. While officers were announcing their presence, they allegedly observed Gilmore and Cross fleeing from the back of the residence, and both were later detained. During their search, officers allegedly found a firearm that had been stolen from Poway Weapons and Gear, a firearm that had been stolen from Chaparral Coin and Gun, two firearms that had been stolen from the Camarillo Gun Store, and at least 45 firearms that had been stolen from Fowler’s Gun Room.
Arraignment is expected in the coming weeks.
A criminal complaint is merely an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants would each face a statutory maximum sentence of five years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ventura County Sheriff’s Office, Riverside County Sheriff’s Department, San Diego County Sheriff’s Department, and the Orange Police Department are investigating this matter.
Assistant United States Attorneys Brittney M. Harris and Kyle W. Kahan of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this matter.
Saint Marys Resident Charged with Conspiring to Traffic Illegal Firearms into CanadaRead the Press Release
ERIE, Pa. - A resident of Saints Marys, Pennsylvania, has been indicted by a federal grand jury in Erie for violating federal firearms laws, United States Attorney Eric G. Olshan announced today.
The three-count Indictment named Gary James Murray, 44, as the sole defendant and was unsealed on July 15, 2024, following his arrest.
According to the Indictment, from October 1, 2022, to April 4, 2024, Murray conspired with individuals in Canada to conceal and ship Glock pistols from the United States to Canada without the required license and contrary to exportation regulations. The firearms Murray allegedly smuggled across the border were prohibited weapons in Canada. Specifically, the Indictment alleges that Murray communicated with multiple buyers in Canada who were interested in purchasing firearms from him and arranging to have them smuggled over the border. Murray, who communicated with the buyers using the encrypted Telegram messaging application, allegedly purchased numerous Glock handguns from local dealers in the Western District of Pennsylvania, disassembled the weapons, and concealed the parts inside household objects such as glue guns, camping kits, and staplers. Murray then allegedly packaged the items and shipped them to British Columbia via the U.S. Postal Service and UPS. As alleged, Murray provided the buyers with instructions on how to reassemble the firearms after they had received the packages in Canada. In exchange for purchasing and smuggling the firearms, Murray allegedly received payments from buyers via Cash App, including more than $20,000 in payments during a two-week period in late January and early February 2024.
“Gary Murray allegedly used his ready access to firearms in the United States to pursue a lucrative cross-border trafficking enterprise,” said U.S. Attorney Olshan. “This prosecution demonstrates once again the resolve of our office and our partners at the ATF to track down and put a stop to illicit firearms sales—including those that span international borders—as well as our commitment to keeping guns out of the hands of people who shouldn’t have them.”
“Stopping firearms trafficking, which puts guns in the hands of violent criminals and other prohibited people, is a top priority at ATF,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Division. “Far from being a victimless crime, trafficking presents a grave threat to public safety. Through enhanced cooperation and coordination with Canadian authorities, including expanded access to the eTrace systems, we disrupted this international firearms trafficking operation, keeping many illegal guns from criminals in the U.S. and Canada.”
Murray is charged with one count each of conspiracy to commit firearms smuggling, unlawful transfer of a firearm to an out-of-state resident, and firearms smuggling. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $750,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Molly W. Anglin is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations conducted the investigation leading to the Indictment, with critical assistance from the Combined Forces Special Enforcement Unit from British Columbia, Canada.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rapid City Woman Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, woman convicted of Possession of a Stolen Firearm. The sentencing took place on July 12, 2024.
Danielle Coats, age, 23, was sentenced to two years and six months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $7,169.97 in restitution.
Coats was indicted for Possession of a Stolen Firearm, Tampering, and Accessory After the Fact by a federal grand jury in February of 2024. She pleaded guilty on April 26, 2024.
Between August of 2023 and September of 2023, at Rapid City, Coats was found to be in possession of a Beretta 12-gauge shotgun, a Benelli 12-gauge shotgun, a USA Military Surplus .30 caliber rifle, and a Stoeger 12-gauge shotgun, knowing the firearms had previously been stolen by another person from various licensed firearms dealers in Rapid City. After coming into possession of the firearms and learning that law enforcement was aware of who had stolen them and that the firearms were likely at Coats’ residence, Coats involved others in removing the firearms from her residence to another family member’s home. Subsequently, Coats directed others to again move or dispose of the firearms to prevent law enforcement from recovering them.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Coats was immediately remanded to the custody of the U.S. Marshals Service.
Quincy Man Pleads Guilty to Role in International Money Laundering ConspiracyRead the Press Release
BOSTON – A Quincy man pleaded guilty today to his involvement in a sophisticated international money laundering and drug trafficking organization.
Licheng Huang, 41, pleaded guilty to conspiracy to commit money laundering. U.S. District Judge Angel Kelley scheduled sentencing for Oct. 31, 2024.
In May 2023, Huang was among 12 individuals from Massachusetts, Rhode Island, New York and California charged in a superseding indictment for their alleged involvement in a sophisticated international money laundering and drug trafficking organization led by Jin Hua Zhang. The investigation revealed that, for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than one year, Zhang and his organization laundered at least $25 million worth of drug proceeds and funds from other illegal businesses through undercover agents.
Law enforcement became aware of Zhang and his organization through Huang. In recorded conversations, Huang told undercover agents that his “boss,” Zhang, had large amounts of drug proceeds to launder. Huang and Zhang moved to convert the funds into cryptocurrency, which could be more easily transmitted to China or elsewhere without being detected by law enforcement. On two occasions in August 2021, Huang worked with other co-conspirators to deliver over $60,000 in cash to the undercover agents. Those funds were converted to Tether, a type of cryptocurrency, and transferred to Zhang, who would take his fee. Law enforcement eventually traced funds from the Zhang organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations, and seized cash and cryptocurrency in accounts tied to Zhang at the conclusion of the investigation.
Zhang pleaded guilty in September 2023 and is scheduled to be sentenced on Sept. 4, 2024.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. 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 United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of the Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Princeton Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Dailen Isaiah Defoe, 21, of Princeton, was sentenced today to nine years in prison, to be followed by three years of supervised release, for distribution of fentanyl.
According to court documents and statements made in court, on December 8, 2022, law enforcement officers executed a search warrant at a Bluefield residence where Defoe and co-defendant Malachi Damonte Cooper were staying. Officers found 734 grams of methamphetamine, approximately 130 grams of fentanyl, digital scales, a money counter, a Micro Draco 7.62mm semi-automatic pistol, a Glock 9mm pistol loaded with a 30-round magazine, and over $23,000. Defoe and Cooper admitted that they possessed the controlled substances and intended to distribute them.
Defoe further admitted to selling a quantity of fentanyl to a confidential informant in Princeton on August 19, 2021. Defoe also admitted to selling additional quantities of fentanyl to the confidential informant in Princeton on August 23 and August 31, 2021.
On August 31, 2022, law enforcement officers executed a search warrant at a residence where Defoe was staying in Princeton. Officers found approximately 375 grams of methamphetamine, 774 grams of fentanyl, 13 grams of heroin, three semi-automatic handguns, two drum magazines, various other firearm magazines and ammunition, and several thousand dollars. Defoe admitted that he possessed the controlled substances and intended to distribute them.
Cooper, 22, of Princeton, was sentenced on March 4, 2024, to eight years in prison, to be followed by four years of supervised release, after pleading guilty to possession with intent to distribute 40 grams or more of fentanyl and 50 grams or more of methamphetamine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Southern Regional Drug and Violent Crime Task Force. The task force consists of members of the West Virginia State Police, the Bluefield Police Department, the Princeton Police Department, the Mercer County Sheriff’s Department, the McDowell County Sheriff’s Department, and the Wyoming County Sheriff’s Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Andrew D. Isabell 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. 1:23-cr-119.
###
PRM Prison Gang Member Sentenced to 19 Years in Prison for Drug TraffickingRead the Press Release
DEL RIO, Texas – A member of the Partido Revolucionario Mexicano (PRM) prison gang and a drug dealer for the gang were sentenced in a federal court in Del Rio for drug trafficking charges.
According to court documents, Clinton Ritchie, 34, of Eagle Pass, worked with other indicted co-conspirators to distribute narcotics in Eagle Pass from March 2019 to June 2021.
Chief Judge Alia Moses sentenced Ritchie to 235 months in prison for conspiracy to possess with intent to distribute a controlled substance. Co-defendant Carlos Daniel Rodriguez-Urrabazo, 41, of Eagle Pass, was also sentenced to 84 months in prison for conspiracy to possess with intent to distribute cocaine.
“The significant sentencing of these criminals reflects the united commitment of law enforcement to stop the importation of drugs from Mexico and the subsequent distribution of illicit substances throughout our communities,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Our successful prosecution is a testament to the hard work of the partnerships across federal, state and local levels.”
“DEA will continue to work with our law enforcement to stop prison gang violence and drug trafficking from bleeding into our communities and devastating lives,” said Special Agent in Charge Daniel C. Comeaux of the DEA Houston Division.
“Our Texas communities deserve to live without the constant threat of drug violence,” said Special Agent in Charge Aaron Tapp of the FBI's San Antonio Field Office. “I want to thank our partners at Border Patrol, the Drug Enforcement Administration, Maverick County Sheriff’s Office, Eagle Pass Police Department, Texas Department of Public Safety, and Homeland Security Investigations for their continued assistance in keeping our communities safe.”
“These individuals represented a significant threat to the residents of Eagle Pass,” said Special Agent in Charge Craig Larrabee for HSI San Antonio. “Not only did they work for a vicious criminal enterprise, but Clinton Ritchie displayed a willingness to commit violence in furtherance of that enterprise. HSI and our partners stand united in ensuring that those who engage in violence and intimidation will face the full force of the law, sending a clear message that these acts will never be tolerated.”
The DEA, FBI, HSI, Border Patrol, Maverick County Sheriff’s Office, Eagle Pass Police Department and Texas Department of Public Safety investigated the case.
Assistant U.S. Attorney Izaak Bruce and Holly Pavlinski prosecuted the case.
This operation 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.
###
Omaha Man Sentenced for Distributing Fentanyl Resulting in DeathRead the Press Release
United States Attorney Susan Lehr announced that Patrick Hoshor, 27, of Omaha, Nebraska, was sentenced on July 16, 2024, in federal court in Omaha for distribution of fentanyl. United States District Judge Brian C. Buescher sentenced Hoshor to 168 months’ imprisonment. There is no parole in the federal system. After Hoshor’s release from prison, he will begin a 3-year term of supervised release.
On April 1, 2023, an individual died from an overdose in an Omaha residence. Officers were able to get into the victim’s phone. There were messages about him getting “30’s” from Hoshor on March 31, 2023, at a MegaSaver in Omaha. Officers went to that location and were able to get store video. Officers saw two people meet and one of them arriving in a car belonging to Hoshor. On April 5, 2023, officers used the victim’s phone and set up another meet with Hoshor. Hoshor, not knowing the victim died, showed up and was arrested. He was interviewed and admitted to selling M30s to the victim. Lab analysis revealed the M30 pill contained fentanyl.
This case was investigated by the Drug Enforcement Administration and the Omaha Police Department.
Ohio Man Sentenced for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – A Hamilton, Ohio, man, Charles Sparks, 60, was sentenced on Tuesday, by U.S. District Judge Robert Wier, to 200 months for possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, on April 4, 2023, law enforcement conducted a traffic stop on a vehicle driven by Sparks and recovered approximately 12 ounces of methamphetamine, digital scales, and a loaded firearm. In pleading guilty, Sparks admitted to transporting the methamphetamine to sell it and to possessing the firearm in furtherance of his drug trafficking activities.
Under federal law, Sparks must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Sheriff John Root, Laurel County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the ATF, KSP, and Laurel County Sheriff’s Office. Assistant U.S. Attorney Pearce Nesbitt prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
— END —
Niagara Falls man pleads guilty to meth chargeRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Asaad Rivers, 36, of Niagara Falls, NY, pleaded guilty to distribution of methamphetamine before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Jeffrey E. Intravatola, who is handling the case, stated that on March 7 and March 12, 2024, investigators conducted controlled purchases of methamphetamine from Rivers in Niagara Falls. On March 26, 2024, law enforcement executed a search warrant at Rivers residence, during which they seized a .22 caliber rifle and .22 caliber ammunition, and approximately 12 ounces of suspected methamphetamine and eight grams of suspected crack cocaine.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Niagara County Drug Task Force, under the direction of Sheriff Michael Filicetti, and CBP Air and Marine Operations, under the direction of Brian Manaher, Director of Marine Operations.
Sentencing will be scheduled at a later date.
# # # #
Multiple defendants prosecuted on federal firearms, drug chargesRead the Press Release
SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include felony charges for illegal firearms possession and drug distribution, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
“As illegally possessed firearms proliferate in our community, our office continues to hold accountable those who threaten the safety of our neighborhoods” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “We commend the efforts of our local, state, and federal law enforcement partners in investigating these criminal activities.”
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
Those indicted during the July term of the U.S. District Court Grand Jury include:
- Cordell Cobb, 23, of Midville, Ga., charged with 10 counts of Interference with Commerce by Robbery, and eight counts of Use of a Firearm During a Crime of Violence. The indictment alleges Cobb robbed convenience stores, a restaurant, and a Dollar General between January to June, 2023, in Bulloch, Burke, Emanuel, Chatham, Ware, Glascock, and Jenkins counties.
- Corinthian Lamar Colonel, 26, of Savannah, charged with Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession of a Firearm by a Convicted Felon; and Possession of Marijuana with Intent to Distribute;
- Tommy Lee Porter, 55, of Augusta, charged with Possession of a Firearm by a Convicted Felon; Possession of Heroin with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of Methamphetamine;
- Stanley Hall, 22, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Ronald Milton, 72, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Maleak J. Parrish, 24, of Savannah, charged with Possession of a Firearm by a Convicted Felon; and,
- Darrell DeMarcus Golden, 31, of Lakeland, Ga., charged with Possession of a Firearm by a Convicted Felon.
Also previously indicted:
- Rashawn Byrd, 35, of Savannah, charged with Possession of a Firearm by a Convicted Felon, Possession with Intent to Distribute Methamphetamine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and,
- Willie Dunbar, 45, of Villa Rica, Ga., charged with Possession of a Machine Gun.
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- Matthew Lacey, 26, of Savannah, was sentenced to 188 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers arrested Lacey on warrants from an April 2023 domestic violence incident and found him in possession of a handgun. Lacey has multiple prior convictions for violent felonies, including assault and illegal gun possession.
- Kenneth Oliver Riley, 60, of Savannah, was sentenced to 57 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found a revolver in Riley’s pocket while investigating a shooting.
- Joe Welcome, 34, of Reidsville, Ga., was sentenced to 51 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Welcome was a passenger in a stolen vehicle stopped by Savannah police officers who determined Welcome was in possession of a pistol.
- Christopher D. Lovett, 44, of Waynesboro, Ga., was sentenced to 46 months in prison and fined$1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. During an investigation by the Drug Enforcement Administration and the Burke County Sheriff’s Office, investigators found a pistol in Lovett’s possession.
- Brian Wesley Dean, 45, of Bloomingdale, Ga., was sentenced to 30 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Pooler police officers found a pistol in Dean’s possession during a traffic stop.
- Daiyuonte Reed, 31, of Oak Bluffs, Mass., was sentenced to three years’ probation and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found a pistol in Reed’s possession while investigating a disturbance at a Savannah restaurant.
- Perez Staples, 40, of Glennville, Ga., awaits sentenced after pleading guilty to Possession of a Firearm by a Convicted Felon. Long County sheriff’s deputies found a pistol in Staples’ vehicle during a traffic stop.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Minnesota Executives Sentenced to Prison for Orchestrating Multimillion Dollar Fraud SchemesRead the Press Release
MINNEAPOLIS – Two medical services company executives have been sentenced to prison and ordered to pay restitution to their victims for orchestrating a massive fraud scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, Khemwattie Singh, 53, was the chief executive officer of Global Medical Services, LLC and Minnesota International Medicine. Neeraj Chepuri, 55, was the chief medical officer of Global Medical Services. Global Medical Services was a Minnesota-based company that purported to provide accessible healthcare solutions and services worldwide. Minnesota International Medicine was an assumed name for a Minnesota-based medical concierge company that was acquired by Global Medical Services in June 2018.
Between June and October 2018, Singh, Chepuri, and others devised a fraud scheme by entering into factoring contracts with a Florida-based investment company to purchase the accounts receivable of Global Medical Services and Minnesota International Medicine for more than $2.6 million. Factoring is a form of short-term financing in which a business sells its accounts receivable to a third-party at a discount.
According to court documents, Singh and Chepuri defrauded the investment company by failing to pay over the receivables as they were collected and falsely represented that no funds had been received. Instead, Singh and Chepuri pocketed the money and wired more than $5 million overseas.
In addition, Singh was responsible for complying with all federal tax laws pertaining to Global Medical Services, LLC and Minnesota International Medicine as the chief executive officer, including the requirement that the business would withhold federal income taxes and Social Security and Medicare (“FICA”) taxes from employees’ pay and report and pay over the withheld amounts to the Internal Revenue Service. Beginning in approximately 2018, Singh willfully failed to file quarterly payroll tax returns or pay over the withheld amounts and the employer’s contribution to FICA.
On December 29, 2023, Singh pleaded guilty to one count of wire fraud and one count of willful failure to account for and pay over payroll taxes for withholding federal taxes from employee payroll. She was sentenced yesterday in U.S. District Court by Chief Judge Patrick J. Schiltz to 27 months for the factoring fraud scheme and 12 months for the tax fraud, to be served concurrently. She was also ordered to pay $3,957,364.62 in restitution to her victims.
Chepuri pleaded guilty to one count of wire fraud on December 29, 2023. He was sentenced today by Chief Judge Schiltz to 21 months in prison, one year of supervised release, and ordered to pay full restitution in the amount of $3,265,363.14.
This case is the result of an investigation conducted by the FBI, the Minnesota Commerce Fraud Bureau, and the IRS - Criminal Investigation.
Assistant U.S. Attorneys Chelsea A. Walcker and Robert M. Lewis prosecuted the case.
Middletown Man Admits Trafficking MethRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that JASON FABEL, 46, of Middletown, pleaded guilty yesterday before U.S. District Judge Omar A. Williams in Hartford to possession with intent to distribute five grams or more of methamphetamine.
According to court documents and statements made in court, on March 16, 2022, Fabel was arrested after the Drug Enforcement Administration conducted a court-authorized search of his Middletown residence and seized approximately 100 grams of methamphetamine, a quantity of ketamine, narcotics paraphernalia, and a loaded 9mm handgun.
On April 27, 2023, while Fabel was released on bond and awaiting trial, he was arrested for violating conditions of his pretrial release. At the time of his arrest, he possessed approximately 24 grams of methamphetamine, six grams of ketamine, and 10 grams of MDMA (“ecstasy”).
At sentencing, which is not scheduled, Fabel faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. He has been detained since April 27, 2023.
This case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
Mexican National Indicted After Officers Seize 54 Kilos of Meth, FentanylRead the Press Release
KANSAS CITY, Mo. – A Mexican national residing in Kansas City, Mo., was indicted by a federal grand jury today after law enforcement officers seized more than 54 kilograms of methamphetamine and a large amount of fentanyl from his residence.
Jose Feliciano Cordova Rodriguez, 36, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Rodriguez on June 24, 2024, and includes additional charges.
Today’s indictment alleges that Cordova Rodriguez participated in a conspiracy to distribute methamphetamine from Jan. 1 to June 22, 2024. The indictment also charges Cordova Rodriguez with one count of possessing methamphetamine with the intent to distribute and one count of possessing fentanyl with the intent to distribute.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers searched Cordova Rodriguez’s residence on June 22, 2024, after surveillance indicated he was involved in a large drug shipment. Officers found five brown boxes that each contained 10 bundles with a total of 54.6 kilograms of methamphetamine. Officers also found a heat-sealed bag in a hole in the wall in the basement that contained 431.1 grams of fentanyl. Officers also found $12,800 in cash in the basement.
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 Jeffrey Q. McCarther. It was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Manager of Marijuana Cultivation Site in Shasta Trinity National Forest Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Custodio Ibarra Nunez, 42, of Merced, was sentenced today to 10 years in prison and ordered to pay $17,930 in restitution to the United States, for conspiracy to cultivate marijuana, marijuana cultivation, and depredation of public lands in the Shasta-Trinity National Forest, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between May 23 and July 8, 2019, Nunez was a manager in a conspiracy to cultivate over 4,000 marijuana plants south of Rays Peak on public lands in the Shasta-Trinity National Forest with three other co-conspirators: Francisco Madrigal Magana, Mario Alberto Lopez Pena, and an uncharged 17-year-old. Agents arrested Magana and Lopez at the site. Magana and Pena were later convicted and sentenced to 18 months and 24 months in prison, respectively, for conspiracy to manufacture marijuana and depredation of public lands and resources.
Nunez was not present at the illegal cultivation site during the law enforcement raid. Subsequent investigation led to his identification, and revealed that he continued to engage in illegal marijuana cultivation with the uncharged minor in Merced. A search of his residence resulted in the discovery of additional marijuana plants, marijuana cultivation tools and supplies, vacuum sealing devices, and packaging material, including evidence of USPS tracking receipts for shipments across the county. Nunez was indicted and arrested in February 2020, and has remained in custody since.
This case was the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, the Bureau of Land Management, the Trinity County District Attorney’s Office the Merced Area Gang and Narcotics Team, the Merced County Sheriff’s Office, the Atwater Police Department, and the Redding Police Department. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
Man Charged in Federal Court with Committing Two Carjackings in ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted a man on carjacking and firearm charges for allegedly violently stealing two vehicles in Chicago earlier this year.
VIRGIL GIBSON, 22, of Chicago, stole a Chevrolet Malibu on April 7, 2024, and a Kia K5 on April 8, 2024, according to an indictment returned in U.S. District Court in Chicago. Gibson brandished a firearm in each of the carjackings and forcibly took the vehicles from the drivers, the indictment states. Gibson also confined the driver in the second carjacking against his will and forced him to wire money to Gibson, the indictment states.
The indictment charges Gibson with two counts of carjacking, three counts of brandishing a firearm during a crime of violence, one count of robbery, and one count of kidnapping. The charges in the indictment carry a maximum sentence of life in federal prison.
Gibson is currently in law enforcement custody. Arraignment in federal court is set for Aug. 12, 2024, at 10:00 a.m., before U.S. District Judge Virginia M. Kendall.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Kirsten Moran.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Gibson indictmentLenox Man Pleads Guilty to Sending Obscene Material to Undercover Law Enforcement Posing as MinorRead the Press Release
BOSTON – A Lenox man pleaded guilty today to attempting to transfer obscene material to a minor over social media.
Paul J. Bruzzi, 37, pleaded guilty to one count of attempt to transfer obscene material to a minor. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 24, 2024.
In September 2022, Bruzzi used social media to engage in conversations with an individual whom he believed to be a 14-year-old girl. In reality, the individual was undercover law enforcement posing as the minor. During these conversations, Bruzzi attempted to coerce the minor into sending him photos and sent her nine photographs and videos of himself displaying his genitalia.
The charge of attempt to transfer obscene matter to a minor provides for a sentence of at least 10 years in prison, at least five years 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 United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Salisbury and Winchester Police Departments. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 https://www.justice.gov/psc.
Lead Defendant in Long Running Drug Trafficking Conspiracy Extradited to the United States from MexicoRead the Press Release
Rodrigo Paez-Quintero, a Mexican national, has been extradited from Mexico to the United States to face charges related to drug trafficking. Paez-Quintero’s surrender to U.S authorities after an extradition proceeding in Mexico demonstrates the ongoing cooperation between the United States and Mexico to combat the influx of dangerous drugs, including fentanyl, into the United States.
Paez-Quintero made his initial court appearance today in the U.S. District Court for the District of Arizona in Tucson.
“Our fight against international drug traffickers who spread poison into our communities requires all hands on deck,” said Deputy Attorney General Lisa Monaco. “This extradition is yet another example of our partnership with Mexican law enforcement to dismantle deadly cartels and bring drug kingpins to justice.”
“This indictment alleges coordinated conduct to traffic fentanyl and other illicit drugs into Phoenix,” said U.S. Attorney Gary Restaino for District of Arizona. “Many thanks to our federal, foreign and sovereign tribal partners for their teamwork and dedication.”
Paez-Quintero is charged in an indictment unsealed today with conspiracy to possess with intent to distribute heroin, methamphetamine, and fentanyl and multiple counts of possession with intent to distribute heroin, methamphetamine, and fentanyl. Each count carries a maximum penalty of life in prison and a maximum fine of $10 million. In the year prior to March 2019, the indictment alleges Paez-Quintero’s involvement in at least nine drug trafficking events from the Lukeville Port of Entry, through Ajo and up to Phoenix. According to numerous open sources, Paez-Quintero is the nephew of jailed Mexican drug kingpin Rafael Caro-Quintero.
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 Drug Enforcement Administration (DEA) Tucson, Homeland Security Investigations (HSI) Sells, and the FBI Phoenix Field Office investigated this case, with substantial assistance from the Tohono O’odham Nation Police Department. The U.S. Marshals Service assisted with the extradition efforts. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Paez-Quintero.
The U.S. Attorney’s Office for the District of Arizona 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.
Lead Defendant in Long Running Drug Trafficking Conspiracy Extradited to the United States from MexicoRead the Press Release
Justice Department Recognizes Mexican Government for Significant Assistance
TUCSON, Ariz. – Rodrigo Paez-Quintero, a Mexican national, has been extradited from Mexico to the United States to face charges related to drug trafficking. Paez-Quintero’s surrender to U.S authorities after an extradition proceeding in Mexico demonstrates the ongoing cooperation between the United States and Mexico to combat the influx of dangerous drugs, including fentanyl, into the United States.
Paez-Quintero made his initial court appearance today in the U.S. District Court for the District of Arizona in Tucson.
“Our fight against international drug traffickers who spread poison into our communities requires all hands on deck,” said Deputy Attorney General Lisa Monaco. “This extradition is yet another example of our partnership with Mexican law enforcement to dismantle deadly cartels and bring drug kingpins to justice.”
“This indictment alleges coordinated conduct to traffic fentanyl and other illicit drugs into Phoenix,” said United States Attorney Gary Restaino. “Many thanks to our federal, foreign and sovereign tribal partners for their teamwork and dedication.”
Paez-Quintero is charged in an indictment with Conspiracy to Possess with Intent to Distribute Heroin, Methamphetamine, and Fentanyl and multiple counts of Possession with Intent to Distribute Heroin, Methamphetamine, and Fentanyl. Each count carries a maximum sentence of life in prison and a maximum fine of $10,000,000. In the year prior to March 2019, the indictment alleges defendant’s involvement in at least nine drug trafficking events from the Lukeville Port of Entry, through Ajo and up to Phoenix. According to numerous open sources, Paez-Quintero is the nephew of jailed Mexican drug kingpin Rafael Caro-Quintero.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
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 Drug Enforcement Administration – Tucson, Homeland Security Investigations – Sells, and the Federal Bureau of Investigation – Tucson conducted the investigation in this case, with substantial assistance from the Tohono O’odham Nation Police Department. The United States Marshals Service assisted with the extradition efforts. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Paez-Quintero. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-19-2042-TUC-JAS
RELEASE NUMBER: 2024-094_Paez-Quintero# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Lake County Man Arrested for Firearms TraffickingRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the arrest of Jose G. Medina (48, Leesburg) on a criminal complaint charging him with one count of knowingly making a materially false statement in connection with the acquisition of a firearm, and one count of causing a Federal Firearm Licensee (FFL) to maintain false information in its official records. If convicted, Medina faces a maximum of 15 years’ imprisonment—10 years on the materially false statement offense and 5 years on the record-keeping offense.
According to the complaint, between January 1, 2023, and December 31, 2023, Medina purchased multiple firearms in the Middle District of Florida for other individuals. Some of these firearms were intercepted by the United States Custom and Border Protection (CBP) as other individuals attempted to transport them across the United States’ border into Mexico.
On May 27, 2023, an individual was encountered by CBP as he attempted to make entry into Mexico at the Eagle Pass (Texas) Port of Entry. He was attempting to bring 10 handguns, 9 rifles, 7 shotguns, 20 magazines, and large amounts of assorted ammunition into Mexico. The individual stated that he was traveling from Orlando, Florida, to San Diego de la Union, Guanajuato, Mexico—an area where Mexican cartels are fighting for control of the territory. Medina had purchased one of these recovered firearms only nine days prior.
On November 17, 2023, CBP officers stopped another individual at the Eagle Pass (Texas) Port of Entry who also was attempting to bring five firearms to Mexico. Medina had purchased two of these firearms less than two weeks before their recovery by CBP.
A record check by the Bureau of Alcohol, Tobacco, firearms, and Explosives (ATF) showed that between January 1, 2023, and December 31, 2023, Medina had purchased 82 firearms for a total of $42,085.61—an amount that exceeded his reported annual income. The investigation also revealed that another firearm purchased by a person associated with Medina had recently been recovered and electronically traced by Mexican law enforcement using ATF’s e-Trace system.
A criminal complaint is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Drug Enforcement Administration, the Eustis Police Department, and the Lake County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Kansas man sentenced for drug traffickingRead the Press Release
TOPEKA, KAN. – A Kansas man was sentenced to 300 months (25 years) in prison for charges related to drug trafficking and illegal firearms.
According to court documents, Christian Michael Woodruff, 33, of Topeka pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm by a convicted felon.
In February 2023, the Drug Enforcement Administration (DEA) received information that Woodruff was selling meth from his home in Topeka. Following an investigation, law enforcement executed a search warrant at Woodruff’s residence while he was there. Agents found 1,190.1 grams of meth that lab tests later revealed to be 98 percent pure as well as multiple guns, ammunition, and a silencer.
“This case is another example of the connection between drug trafficking and illegal possession of firearms. ATF will continue to prioritize keeping repeat violent offenders off our streets because it is a critical component of keeping our communities safe,” stated Gordon N. Mallory, Acting, Special Agent in Charge, ATF Kansas City. “It is illegal for convicted felons to possess guns, and we will vigorously investigate repeat offenders who continue to arm themselves. I’m grateful for the work our agents and partners put into this case. I hope with this sentence today the community will be a little bit safer.”
The Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Shawnee County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Gregory Hough prosecuted the case.
###
Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jason Todd Painter, 40, of Clendenin, pleaded guilty today to conspiracy to distribute a quantity of methamphetamine.
According to court documents and statements made in court, from March 15, 2023 through June 24, 2023, Painter received 11 packages containing methamphetamine sent by a co-conspirator from New York to Painter’s residence in Clendenin. Painter kept some of the methamphetamine for himself and held the rest for the co-conspirator to pick up. The co-conspirator occasionally directed Painter to deliver methamphetamine to other individuals in the Kanawha County area.
On July 15, 2023, the co-conspirator shipped a package through the United States Postal Service from New York to Painter in Clendenin. Law enforcement intercepted the package and discovered that it contained approximately 4.2 kilograms of methamphetamine.
Painter is scheduled to be sentenced on October 16, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT), the U.S. Postal Inspection Service, and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney JC MacCallum is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-182.
###
Justice Department Secures Agreement with Bell County to Ensure Polling Place Access to Voters with DisabilitiesRead the Press Release
AUSTIN, Texas – U.S. Attorney Jaime Esparza for the Western District of Texas announced today that the United States has reached a settlement agreement with Bell County to ensure that the county provides accessible polling places to voters with disabilities. The agreement resolves the United States’ investigation into Bell County’s compliance with Title II of the Americans with Disabilities Act (“ADA”), which prohibits discrimination on the basis of disability by a state or local government in any of its programs or services.
The United States surveyed 13 of the county’s polling places used during the 2023 Uniform Election. The United States observed that polling places contained architectural or equipment barriers that rendered the facilities inaccessible to votes with disabilities, such as a lack of van accessible parking, excessively sloped ramps, excessively sloped portions of parking spaces and protruding objects. In addition, the United States observed a lack of knee and toe clearance to accommodate wheelchairs at the accessible voting machines.
“The right to vote is a foundation of our democracy and must not be diminished or restricted,” said U.S. Attorney Esparza. “Under this agreement, eligible voters with disabilities in Bell County will be able to exercise their fundamental right to vote and participate in our democracy. Our office will continue working to ensure that all eligible Americans have access to the ballot, and we commend Bell County for their cooperation throughout the investigation and in this resolution.”
Under the settlement agreement the county will engage the technical assistance of an accessibility expert and use an evaluation form for each current and prospective polling place based on ADA architectural standards. The agreement requires the county to either relocate voting to new, accessible facilities, or to use temporary measures such as portable ramps, traffic cones, signs, wedges, and door stops to ensure accessibility on Election Day. In addition, Bell County will train its poll workers and other elections staff on the requirements of the ADA and how to use temporary measures to ensure each polling place is accessible during elections.
For more information about the ADA, please visit www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://www.justice.gov/crt/how-file-complaint.
Assistant U.S. Attorneys Liane Noble, Matthew Mueller and Robert Green represented the government in this investigation and resolution.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
###
Jury Convicts Eau Claire Man of Wire FraudRead the Press Release
MADISON, WIS. – An Eau Claire, Wisconsin, man has been convicted of wire fraud and attempting to commit wire fraud. Robert Carter, 45, was convicted following a two-day trial in federal court in Madison. The jury reached a verdict today after just over an hour of deliberation. The guilty verdict is announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin.
The government presented evidence at trial that from April 22, 2020 to January 25, 2021, Carter made false statements and provided false documents to companies that leased and sold semitrucks in an attempt to fraudulently obtain property, specifically, semi-trucks, to use in his business, Carter Transportation Group. In support of his lease applications, Carter submitted false financial statements for his businesses and submitted a false wire transfer receipt. Carter also falsely claimed that he had a multi-million-dollar trust.
U.S. District Judge William M. Conley scheduled sentencing for October 17, 2024. Carter faces a maximum penalty of 20 years in federal prison on the each of the two fraud counts.
The case was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation with assistance provided by the Office of the U.S. Trustee for the Western District of Wisconsin. The prosecution is being handled by Assistant U.S. Attorneys Chad Elgersma and Megan Stelljes.
Jury Convicts Columbia Man of Fentanyl TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Columbia, Mo., man was found guilty in federal court today of possessing fentanyl that he intended to distribute in Springfield, Mo.
Michael E. Hunt, Jr., 43, was found guilty of one count of possessing fentanyl with the intent to distribute.
Law enforcement officers learned that Hunt was planning to transport fentanyl from Columbia to Springfield. Hunt was driving a black Jeep Renegade southbound on Highway 5 on June 12, 2022, when a Laclede County, Mo., sheriff’s deputy conducted a traffic stop for a moving violation. A police service dog alerted to the presence of drugs in the Jeep, at which time Hunt locked the vehicle and refused to give officers the keys.
After the Jeep was unlocked by a local tow company, officers searched the vehicle and found a black gym bag on the front passenger seat that contained approximately 300 grams of fentanyl, which is consistent with distribution and not merely personal use.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about an hour before returning a guilty verdict to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, July 15.
Under federal statutes, Hunt is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Anthony Brown and J.D. Hatcher. It was investigated by the Drug Enforcement Administration, the Laclede County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
Jersey City Man Sentenced to 94 Months in Prison for Unlawful Possession of Firearm and Ammunition Used to Commit ShootingRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 94 months in prison for illegally possessing a firearm and ammunition in connection with an incident in which he shot another individual in the middle of a crowded street in Jersey City, U.S. Attorney Philip R. Sellinger announced.
Christian Freire, 29, of Jersey City, previously pleaded guilty before U.S. District Judge William J. Martini to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Martini imposed the sentence today in federal court in Newark.
According to documents filed in this case and statements made in court:
A little after midnight on Aug. 29, 2020, Freire was walking with a group of individuals toward Martin Luther King Drive in Jersey City when he observed two men approaching and – as caught on a surveillance camera from a nearby residence – fired multiple rounds at the men in the middle of the street. This sent a large group of bystanders running from the area.
When Jersey City Police Department officers arrived on the scene, Freire attempted to hide, but then fled as officers approached him. Officers observed Freire tossing a handgun towards a church lawn as he was fleeing. After apprehending Freire, a previously convicted felon, the officers ultimately recovered the black Taurus PT111 G2 9mm handgun with an obliterated serial number that Freire threw.
A victim of the shooting was transported to Jersey City Medical Center with a gunshot wound to the leg.
In addition to the prison term, Judge Martini sentenced Freire to three years of supervised release.
U.S. Attorney Sellinger credited the Jersey City Police Department, under the direction of Director James Shea, for the investigation. He also thanked the FBI, under the direction of Special Agent in Charge James E. Dennehy.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration’s New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Jersey City Police Department, the Hudson County Prosecutor’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Joseph Stern of the General Crimes Unit in Newark.