title: Indonesian National Extradited from Singapore to Face Charges of Running Ponzi Scheme Targeting Indonesian and Indo-American Community

component: USAO - New York, Eastern

body_text: A 16-count indictment and 16-count superseding indictment were unsealed in federal court in Brooklyn charging Indonesian national Francius Marganda with securities fraud, wire fraud, money laundering and related conspiracy counts for running a Ponzi scheme from May 2019 to May 2021 that targeted hundreds of victim investors residing in more than 12 states including New York and in Indonesia. Marganda was extradited to the Eastern District of New York from Singapore yesterday and will be arraigned on November 13, 2023 before United States Chief Magistrate Judge Lois Bloom. Breon Peace, United States Attorney for the Eastern District of New York; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Ivan J. Arvelo, Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), announced the extradition and charges. “Hundreds of victims entrusted their hard-earned money to a fellow countryman from Indonesia who turned out to be an unscrupulous fraudster. Marganda betrayed their trust by using a classic Ponzi scheme to defraud them out of millions of dollars for his own personal gain,” stated United States Attorney Peace. “This Office is committed to protecting the investing public from predators like Marganda and will work closely with our law enforcement partners to bring these criminals to justice regardless of where in the world they are located.” Mr. Peace thanked the Justice Department’s Office of International Affairs, particularly the DOJ Attachés based in Manila and Bangkok; law enforcement partners at the U.S. Embassy in Singapore, including the FBI’s Legal Attaché, the HSI Attaché, and the U.S. Department of State’s Diplomatic Security Service Overseas Criminal Investigations office; and Singaporean authorities, particularly the Singapore Police Force and Attorney-General's Chambers, for their assistance with Marganda’s arrest and extradition. Mr. Peace also thanked the Securities and Exchange Commission, Fort Worth Regional Office; the United States Attorney’s Office for the Southern District of New York; the Internal Revenue Service Criminal Investigation, New York; the Federal Trade Commission; the New York State Attorney General’s Office; the Commonwealth of Massachusetts Attorney General’s Office; the New York County District Attorney’s Office; the Queens County District Attorney’s Office; the New York City Police Department; the Westford Police Department, Westford, Massachusetts; the Richfield Police Department, Richfield, Minnesota; and the Lexington Police Department, Lexington, South Carolina, for their assistance with the investigation. “Marganda allegedly preyed on his fellow expatriates and countrymen in order to defraud them of their money. The defendant enticed his victims with promises of an extraordinary return on investment, a tried-and-true lure into a Ponzi Scheme. Instead, the victims’ money went to funding the defendant’s extravagant lifestyle. The FBI and our law enforcement partners are dedicated to protecting the public from scams and ensuring that those who perpetuate these types of schemes face the consequences for their actions,” stated FBI Assistant Director-in-Charge Smith. “As alleged, Marganda and his co-conspirators preyed on the Indonesian and Indo-American community, promising rates of return that appeared too good to be true until their Ponzi scheme came crashing down, leaving investors out of their hard-earned savings to the tune of millions of dollars,” stated HSI Special Agent-in-Charge Arvelo. “HSI is proud to work with our partners at home and abroad, leveraging our international footprint to protect innocent victims from predatory schemes and bring the perpetrators to justice.” Marganda owned and operated Air Travel Ticketing Corp., a discount airline tickets company in New York, and operated MH Lux & Beauty Inc., a purported luxury goods company registered in California. As alleged in the indictment, from May 2019 to May 2021, Marganda and his co-conspirators ran a scheme to defraud investors by soliciting investments in two sham programs called Easy Transfer and Global Transfer—which Marganda and his co-conspirators falsely represented were short-term, high-interest loan programs in which investors would earn passive income. Hundreds of investors, many of the defendant’s Air Travel customers, were predominantly from the Indonesian and Indo-American community, and they invested more than $23 million into Easy Transfer and Global Transfer. Many of the victims had limited means and had pooled their resources with relatives and friends to make investments. In fraudulent agreement letters distributed to victim investors, the scheme participants promised high rates of return—often as high as 200% or more—on the investors’ deposits. As the Ponzi scheme continued, Marganda and his co-conspirators directed investors to make cash payments and to deposit funds into their bank accounts and the accounts of other investors. Marganda and his co-conspirators misappropriated the funds for their own benefit, including by buying real estate and luxury goods. Marganda and his co-conspirators also laundered scheme-related money into bank accounts located in the Eastern District of New York and in Indonesia. The Ponzi scheme ultimately collapsed in May 2021, when Marganda and his co-conspirators stopped making payments to investors. The charges in the indictment are allegations, and Marganda is presumed innocent unless and until proven guilty. If convicted, Marganda faces up to 20 years’ imprisonment for each of the wire fraud, securities fraud, wire fraud conspiracy and money laundering conspiracy counts and for four of the money laundering counts; up to 10 years’ imprisonment for two of the money laundering counts; and up to five years’ imprisonment for the securities fraud conspiracy count. The FBI and HSI have established a website and an e-mail hotline for potential victims. If you have information regarding the allegations in the indictment or believe that you may be a victim, please go to www.fbi.gov/Marganda or e-mail HSIMarganda@hsi.dhs.gov In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including wire fraud, such as the fraud that Marganda committed. The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Victor Zapana and Laura Zuckerwise are in charge of the prosecution, with assistance from Paralegal Specialist Kavya Kannan. The Defendant : FRANCIUS MARGANDA Age: 40 Jakarta, Indonesia and formerly of Queens, New York E.D.N.Y. Docket No. 22-CR-481 (DLI)


title: Warga Negara Indonesia Diekstradisi Dari Singapura Untuk Menghadapi Tuntutan Karena Melakukan Skema Ponzi Yang Menargetkan Komunitas Indonesia Dan Indo-Amerika

body_text: Di pengadilan federal di Brooklyn, Dakwaan 16 dakwaan dan 16 dakwaan pengganti telah dibuka segelnyadalam penuntutan warga negara Indonesia bernama Francius Marganda yang melakukan penipuan sekuritas, penipuan kawat, pencucian uang dan tuduhan konspirasi terkait karena melakukan skema Ponzi dari bulan Mei 2019 hingga Mei 2021 yang menargetkan ratusan korban investor yang menetap di lebih dari 12 negara bagian termasuk New York dan di Indonesia. Marganda diekstradisi ke Distrik Timur New York dari Signapore kemarin dan akan diadili pada 13 November 2023 di hadapan Hakim Ketua Amerika Serikat Lois Bloom. Breon Peace, Pengacara Amerika Serikat untuk Distrik Timur New York; James Smith, Asisten Direktur Penanggung Jawab, Federal Bureau of Investigation (Biro Investigasi Federal), Kantor Lapangan New York (FBI); dan Ivan J. Arvelo, Agen Khusus Penanggung Jawab, U.S. Department of Homeland Security (Departemen Keamanan Dalam Negeri AS), Investigasi Keamanan Dalam Negeri (HSI), mengumumkan ekstradisi dan gugatannya. “Ratusan korban menitipkan uang hasil jerih payah mereka kepada rekan senegaranya dari Indonesia yang ternyata adalah penipu yang jahat. Marganda mengkhianati kepercayaan mereka dengan menggunakan skema Ponzi klasik untuk menipu mereka hingga jutaan dolar untuk keuntungan pribadinya,” kata Peace, Pengacara Amerika Serikat. “Kantor ini berkomitmen untuk melindungi masyarakat investor dari pemangsa seperti Marganda dan akan bekerja sama dengan mitra penegak hukum kami untuk membawa para penjahat ini ke keadilan di mana pun mereka berada.” Mr. Peace berterima kasih kepada Office of International Affairs (Kantor Hubungan Internasional) di Departemen Kehakiman, khususnya Atase DOJ yang berbasis di Manila dan Bangkok; mitra penegakan hukum di U.S. Embassy (Kedutaan Besar AS) di Singapura, termasuk Atase Hukum FBI, Atase HSI, dan U.S. Department of State’s Diplomatic Security Service Overseas Criminal Investigations office (Kantor Investigasi Kriminal Luar Negeri Layanan Keamanan Diplomatik di Departemen Luar Negeri AS); dan para pihak berwenang di Singapura, khususnya Kepolisian Singapura dan Attorney-General’s Chambers (Dewan Kejaksaan Agung), atas bantuan mereka dalam penangkapan dan ekstradisi Marganda. Mr. Peace juga berterima kasih kepada Securities and Exchange Commission, Fort Worth Regional Office (Komisi Sekuritas dan Bursa, Kantor Regional di Fort Worth); United States Attorney’s Office for the Southern District of New York (Kantor Kejaksaan Amerika Serikat untuk Distrik Selatan New York); Internal Revenue Service Criminal Investigation (Investigasi Kriminal Dinas Pendapatan Internal), New York; Federal Trade Commission (Komisi Perdagangan Federal); New York State Attorney General’s Office (Kantor Kejaksaan Agung Negara Bagian New York); Commonwealth of Massachusetts Attorney General’s Office (Kantor Kejaksaan Agung Persemakmuran Massachusetts); New York County District Attorney’s Office (Kantor Kejaksaan Wilayah New York); Queens County District Attorney’s Office (Kantor Kejaksaan Wilayah Queens); New York City Police Department (Departemen Kepolisian Kota New York); Westford Police Department (Departemen Kepolisian Westford), di Westford, Massachusetts; Richfield Police Department (Departemen Kepolisian Richfield), di Richfield, Minnesota; dan Lexington Police Department (Departemen Kepolisian Lexington), di Lexington, Carolina Selatan, atas bantuan mereka dalam penyelidikan ini. “Marganda diduga memangsa rekan-rekan ekspatriat dan senegaranya untuk menipu uang mereka. Terdakwa membujuk korbannya dengan janji pengembalian investasi yang luar biasa, sebuah godaan yang terbukti berhasil dalam skema Ponzi. Sebaliknya, uang korban tersebut digunakan untuk membiayai gaya hidup mewah si terdakwa. FBI dan mitra penegak hukum kami berdedikasi untuk melindungi masyarakat dari penipuan dan meyakinkan bahwa bagi mereka yang melanjutkan tipe skema seperti ini akan menghadapi konsekuensi atas perbuatan mereka,” ujar Asisten Direktur Penanggung Jawab dari FBI yang bernama Smith. “Seperti yang dituduhkan, Marganda dan rekan-rekan konspiratornya memangsa komunitas Indonesia dan Indo-Amerika, menjanjikan tingkat pengembalian yang tampaknya terlalu bagus untuk menjadi kenyataan hingga skema Ponzi mereka runtuh, sehingga investor kehilangan tabungan dengan jumlah jutaan dolar yang telah mereka peroleh dengan susah payah,” ujar Agen Khusus HIS Arvelo. “HSI bangga bisa bekerja sama dengan mitra kami di dalam dan luar negeri, dengan memanfaatkan jejak internasional kami untuk melindungi korban yang tidak bersalah dari skema pemangsa dan membawa para pelaku ke keadilan. Marganda memiliki dan mengoperasikan Air Travel Ticketing Corp., sebuah perusahaan tiket pesawat diskon di New York, dan mengoperasikan MH Lux & Beauty Inc., sebuah perusahaan barang mewah yang terdaftar di California. Seperti yang dituduhkan di dalam dakwaan, dari bulan Mei 2019 hingga Mei 2021, Marganda dan rekan-rekan konspiratornya menjalankan skema untuk menipu para investor dengan cara meminta investasi dalam dua program palsu, yaitu Easy Transfer dan Global Transfer —yang mana Marganda dan rekan-rekan konspiratornya menggambarkan secara palsu sebagai program pinjaman jangka pendek dengan bunga tinggi di mana para investor akan memperoleh pendapatan pasif. Ratusan investor, banyak dari mereka adalah pelanggan dari perusahaan Air Travel milik terdakwa, sebagian besar berasal dari komunitas Indonesia dan Indo-Amerika, dan mereka menginvestasikan lebih dari 23 juta dolar ke dalam Easy Transfer dan Global Transfer. Banyak dari korban-korban ini mempunyai keuangan yang terbatas dan mengumpulkan sumber daya mereka dari kerabat dan teman-teman untuk melakukan investasi. Dalam surat-surat berisi perjanjian palsu yang dibagikan kepada korban investor, peserta skema menjanjikan tingkat pengembalian yang tinggi – seringkali setinggi 200% atau lebih – pada simpanan investor. Saat skema Ponzi berlanjut, Marganda dan rekan-rekan konspiratornya mengarahkan para investor untuk melakukan pembayaran tunai dan untuk menyetorkan dana ke dalam rekening bank mereka dan ke rekening investor-investor lain. Marganda dan rekan-rekan konspiratornya menyalahgunakan dana tersebut untuk kepentingan mereka sendiri, termasuk dengan membeli perumahan dan barang-barang mewah. Marganda dan rekan-rekan konspiratornya juga mencuci uang terkait dengan skema tersebut ke dalam rekening bank yang berlokasi di Distrik Timur kota New York dan di Indonesia. Skema Ponzi tersebut akhirnya gagal di bulan Mei 2021, ketika Marganda dan rekan-rekan konspiratornya berhenti melakukan pembayaran kepada para investor. Tuduhan di dalam dakwaan adalah dugaan, dan Marganda dianggap tidak bersalah kecuali dan hingga terbukti bersalah. Jika terbukti bersalah, Marganda akan menghadapi hukuman penjara hingga 20 tahun untuk setiap tuduhan penipuan kawat, penipuan sekuritas, konspirasi penipuan kawat dan konspirasi pencucian uang dan untuk empat tuduhan pencucian uang; hingga 10 tahun penjara untuk dua tuduhan pencucian uang; dan hukuman penjara hingga lima tahun untuk tuduhan konspirasi penipuan sekuritas. FBI dan HSI telah membentuk situs web dan hotline email untuk para calon korban. Jika Anda memiliki informasi mengenai tuduhan-tuduhan dalam dakwaan ini atau yakin bahwa Anda mungkin menjadi korban, silakan kirim email ke HSIMarganda@hsi.dhs.gov atau www.fbi.gov/Marganda . Pada bulan Juli 2022, Mr. Peace terpilih sebagai Ketua sub White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (komite Penipuan Kerah Putih untuk Dewan Pertimbangan Kejaksaan Agung) (AGAC). Sebagai pemimpin sub komite, Mr. Peace memainkan peran penting dalam membuat rekomendasi untuk AGAC untuk memfasilitasi pencegahan, penyelidikan dan penuntutan berbagai kejahatan tanpa kekerasan yang bermotif finansial, termasuk penipuan kawat, seperti penipuan yang telah dilakukan oleh Marganda. Kasus pemerintah ini ditangani oleh Bagian Integritas Publik dari Kantor tersebut. Asisten Pengacara Amerika Serikat bernama Victor Zapana dan Laura Zuckerwise bertanggung jawab atas penuntutan tersebut, dengan bantuan dari Paralegal Spesialis Kavya Kannan. Terdakwa : FRANCIUS MARGANDA Umur: 40 Jakarta, Indonesia dan sebelumnya dari Queens, New York E.D.N.Y. Docket No. 22-CR-481 (DLI)


title: Former Indiana State Representative Agrees to Plead Guilty to Federal Corruption Charge

component: Federal Bureau of Investigation (FBI)

body_text: INDIANAPOLIS—Sean Eberhart, 57, a former member of the Indiana House of Representatives, has agreed to plead guilty to conspiring with others to solicit and receive the promise of future, lucrative employment with a gaming company in exchange for his support of legislation beneficial to the gaming company. The United States Attorney’s Office filed the charges along with Eberhart’s agreement to plead guilty. According to court documents, Eberhart was the elected representative for Indiana House District 57, which included Shelby County and portions of Bartholomew and Hancock counties. Eberhart served on the House Committee on Public Policy, which had jurisdiction over matters concerning casinos and gaming in Indiana. In late 2018 and early 2019, a gaming company called Spectacle Entertainment sought to purchase the state licenses for two casinos that were located on the waterfront of Lake Michigan, and to relocate those casinos to other areas beneficial to Spectacle. Purchases and relocations of casinos in Indiana must be approved through the passage of a bill by both houses of the Indiana legislature, then signed by the Governor. A bill to allow Spectacle’s purchases and relocations was introduced in the Indiana House and considered by the House Committee on Public Policy. In addition to approving the purchases and relocations of the casinos, the bill included provisions for Spectacle to pay a “transfer fee.” According to the federal charges, an owner of Spectacle, identified as Individual A, offered, and Eberhart accepted, the promise of future employment at Spectacle, which included annual compensation of at least $350,000. In exchange, Eberhart allegedly used his position as a member of the Indiana House of Representatives to advocate and ultimately vote for passage of the bill on terms favorable to Spectacle, including to authorize the transfer and relocation of the two casinos, reducing the transfer fee from $100 million to $20 million, and enacting tax incentives that would benefit Spectacle. Additionally, Eberhart allegedly sent text messages regarding his efforts to secure legislation favorable to Spectacle and to “make it right for” Individual A. The charges were announced by Zachary A. Myers, United States Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office. The FBI investigated this case. U.S. Attorney Myers thanked Assistant United States Attorney Brad Shepard, who is prosecuting this case. Charges are merely allegations, and those accused are presumed innocent until they plead guilty or are proven guilty beyond a reasonable doubt in a court of law. ###


title: Southwest Georgia Man Sentenced to Prison for Illegally Possessing a Gun

component: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

body_text: ALBANY, Ga. – A Southwest Georgia resident with a lengthy criminal history was sentenced to serve 15 years in prison for illegally possessing a firearm. Tomario Ricardo Hicks, 42, of Albany, was sentenced to serve 180 months in prison to be followed by five years of supervised release by U.S. District Judge Leslie Abrams Gardner on Nov. 9. Hicks previously pleaded guilty to possession of a firearm by a convicted felon on Jan. 26. The defendant is not eligible for parole. “Repeat offenders who continuously disregard the community’s safety and are caught illegally possessing guns will face federal consequences for their crimes,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement partners from every level, we will focus our collective resources to reduce crime and make our neighborhoods as safe as possible.” “One of ATF’s top priorities is to deny criminals access to firearms and protect the rights of law-abiding citizens. The offender illegally had a firearm that subsequently could have been used against our citizens and our communities; ATF takes this very seriously,” said ATF Assistant Special Agent in Charge Beau Kolodka. According to court documents, Hicks was pulled over for speeding in Albany on Jan. 28, 2022. Hicks threw a quantity of methamphetamine out of his car during the traffic stop and admitted he was carrying a firearm, even though he was a prohibited person. The .380 caliber pistol was located on the driver side floorboard, along with a digital scale in the center console and a box of baggies in the backseat. Hicks has a lengthy criminal history, to include many prior felony convictions for possession with intent to distribute controlled substances in Dougherty County, Georgia, Superior Court. This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Georgia State Patrol (GSP) and the Albany Dougherty Drug Unit (ADDU). Assistant U.S. Attorney Matthew Redavid prosecuted the case for the government.


title: Lutcher Man Pleads Guilty to  Possession of a Machine Gun

body_text: NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on November 2, 2023, TYKI CLAYTON , age 21, of Lutcher, Louisiana, pleaded guilty to possession of a machine gun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). CLAYTON faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment and a mandatory $100 special assessment fee. According to public records, on March 28, 2022, CLAYTON was the passenger in a vehicle driving in Lutcher, LA. When CLAYTON ’s vehicle did not come to a full stop at an intersection, a St. James Parish deputy initiated a lawful traffic stop. The deputy approached the vehicle and found CLAYTON in the front passenger seat reaching between his legs into a backpack. The driver stated that she did not have her license. After receiving CLAYTON’s driver’s license information, the deputy learned that CLAYTON had an outstanding arrest warrant. After searching the vehicle, the deputy recovered a Glock firearm from the backpack located between CLAYTON ’s legs. CLAYTON admitted knowing that the firearm was equipped with an auto-sear making it a fully automatic machinegun. 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 track violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. James Parish Sheriff’s Office. United States Attorney Mike Trummel of the Violent Crime Unit handled the prosecution.


title: Couple Charged for Operating Multimillion-Dollar Pyramid Scheme

component: Criminal Division

body_text: A federal grand jury in the Eastern District of Texas returned an indictment yesterday charging a Texas couple for operating an illegal pyramid scheme that defrauded thousands of participants of more than $10 million. According to court documents, LaShonda Moore, 35, and Marlon Moore, 37, co-founded and ran an illegal pyramid scheme called Blessings in No Time (BINT). BINT was allegedly a chain-referral pyramid scheme that targeted the African American community during the COVID-19 pandemic with false and misleading promises that participants could expect 800% guaranteed returns and guaranteed refunds if participants were unsatisfied with the program. The Moores allegedly organized BINT’s payment scheme with “playing boards” that had eight Fire positions, four Wind positions, two Earth positions, and one Water position. As alleged, players in the Fire position advanced on the board by paying at least $1400 to the person in the Water position and recruiting two new Fire-level participants, at which point the cycle would repeat. In other words, eight new participants had to be recruited into the scheme for a single earlier participant to receive a return on their initial investment. The Moores allegedly placed themselves and their family members in the Water position on multiple playing boards to receive the payments from participants in the Fire position and collected a substantial sum from participants’ monthly user fees, which were required for participation in BINT. The Moores are charged with conspiracy to commit wire fraud, wire fraud, and money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each wire fraud count and 10 years in prison for each money laundering count. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Damien M. Diggs for the Eastern District of Texas, Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group, Acting Special Agent in Charge Christina Foley of the U.S. Secret Service Dallas Field Office, and Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office made the announcement. USPIS, U.S. Secret Service, and IRS-CI are investigating the case. Trial Attorney Theodore M. Kneller and Assistant Chief William Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nathaniel Kummerfeld for the Eastern District of Texas are prosecuting the case. The department received assistance from the Federal Trade Commission and the Texas Attorney General’s Office. If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov . To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Registered Sex Offender Charged with Receipt of Obscene, Child Sexual Abuse Material

component: USAO - Wisconsin, Eastern

body_text: Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 8, 2023, a federal grand jury returned an indictment charging Anthony J. Michalek (age: 38) of Langlade County, Wisconsin, with receipt of a visual depiction of a minor engaged in sexually explicit conduct that is obscene in violation of Title 18, United States Code, Section 1466A, and commission of a felony sex offense by an individual required to register as a sexual offender, in violation of Title 18, United States Code, Section 2260A. According to the indictment, Michalek knowingly received obscene visual depictions of the sexual abuse of children. He faces a mandatory five years’ imprisonment and up to 20 years’ imprisonment if convicted of that conduct. Additionally, Michalek faces a mandatory minimum sentence of ten years’ imprisonment, to be served consecutively, if convicted of committing a felony sex offense as an individual required to register as a sexual offender. This case was investigated by the Langlade County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble. An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . # # # For Additional Information Contact: Public Information Officer Kenneth.Gales@usdoj.gov 414-297-1700 Follow us on Twitter


title: Correctional Center Lieutenant Admits to Federal Charge for Depriving Inmate of Civil Rights

component: USAO - Illinois, Southern

body_text: EAST ST. LOUIS, Ill. – A Pinckneyville Correctional Center acting lieutenant appeared in federal court Wednesday to admit he failed to intervene while his subordinates beat a restrained inmate. Mark C. Maxwell, 52, of Pinckneyville, Illinois, faces up to 10 years in federal prison after pleading guilty to one count of deprivation of civil rights under color of law. He was charged for standing by while two other correctional officers punched and kicked an inmate who was handcuffed and shackled in leg irons. The victim suffered a fractured orbital socket, a partially collapsed lung, and needed 25 stitches to close lacerations to his face. Under federal law, officers have a duty to intervene if a fellow officer uses excessive force. Cord A. Williams, 35, of Vergennes, Illinois, and Christian L. Pyles, 25, of Christopher, Illinois, were also charged in the same indictment as Maxwell and have each pleaded guilty to violation of civil rights under color of law, conspiracy to obstruct justice, and obstruction of justice. The charges arose from an incident in which an inmate was beaten while fully restrained in handcuffs and leg irons on April 24, 2022. According to court documents, the beating occurred to punish the inmate, because the inmate had previously punched a different correctional officer. Maxwell’s sentencing is scheduled for Feb. 21, 2023. The Illinois State Police is leading the investigation, and Assistant U.S. Attorney Steven D. Weinhoeft is prosecuting the case.


title: Mexican National Pleads Guilty to Firearm Trafficking and Illegal Re-entry Charges

body_text: EL PASO, Texas – A Mexican national pleaded guilty in a federal court in El Paso to conspiring to traffick firearms while residing in the United States illegally following prior deportation. According to court documents, on Jan. 25, Erick Arenas Pascual, 22, of Ciudad Juarez, Chihuahua, Mexico, drove a co-defendant to a Federal Firearms Licensee (FFL) in El Paso, where the co-defendant purchased a handgun. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested the two defendants as they left the FFL and discovered a second recently purchased handgun with 100 rounds of ammunition in Pascual’s vehicle. An investigation revealed that Pascual planned to and had previously delivered firearms to individuals who would smuggle firearms into Mexico. It was further determined, through Department of Homeland Security records, that Pascual was a non-U.S. citizen and had been previously removed through El Paso in August 2020. Pascual pleaded guilty to one count of conspiracy to traffick firearms and one count of illegal re-entry. He faces up to 15 years in prison for the conspiracy charge and up to two years in prison for the illegal re-entry charge. 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 and Special Agent in Charge Jeffrey C. Boshek II for the ATF Dallas Field Division made the announcement. The ATF is investigating the case. Assistant U.S. Attorneys Juan Albino and Nallely Barbosa are prosecuting the case. ###


title: New Paltz Business Owner Sentenced for Filing False Tax Returns

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Susan Salanitri, age 60, of New Paltz, New York, was sentenced today to 2 years of probation, and to pay $307,665 in restitution, for filing false tax returns. United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division, made the announcement. Salanitri, the owner of two restaurants in New Paltz, previously pled guilty to five counts of filing false tax returns. She admitted that during each of the tax years 2015 through 2019, she deliberately under-reported her restaurants’ revenues on her individual tax return filed with the IRS, resulting in a total underpayment of taxes in the amount of $307,665. IRS-CI investigated this case, and Assistant U.S. Attorney Michael Barnett prosecuted this case.


title: Three Lexington County Men Sentenced in Methamphetamine Drug Conspiracy

component: USAO - South Carolina

body_text: COLUMBIA, S.C. —Kenneth Eddy Frye, 58, Christopher David Jeffcoat, 42, and Jerry Lynn Cordell, 41, were sentenced today for their involvement in a methamphetamine drug conspiracy that occurred in Lexington County. Evidence presented to the Court during their guilty plea hearing revealed that Frye, Jeffcoat, and Cordell were involved in distributing methamphetamine in Lexington County. The Lexington County Sheriff’s Department NET team along with the Bureau of Alcohol, Tobacco, Firearms and Explosives began an investigation of the men. Using an undercover agent, they made methamphetamine purchases from the men on seven different occasions buying amounts of methamphetamine ranging from 50 grams up to over 200 grams at a time. These purchases happened Jeffcoat’s home in Gaston, S.C. and a local nightclub in Lexington County. At sentencing, each defendant admitted that his use of methamphetamine lead to his involvement in the conspiracy. United States District Judge Sherri A. Lydon sentenced Frye to a total of 37 months, Jeffcoat to a total of 100 months, and Cordell to a total of 65 months imprisonment with each having four years of court-ordered supervision following release from prison. There is no parole in the federal system. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lexington County Sheriff’s Department NET team. Assistant U.S. Attorney William K. Witherspoon prosecuted the case. ###


title: Recidivist Gang Member Receives 13 Years in Federal Prison for Drug Trafficking and Possession of a Sawed-Off Rifle

body_text: NEW BERN, N.C. – Kawshie Chapman, 49, of Wilmington, was sentenced to 160 months in prison for drug and firearm offenses after selling drugs and guns, including a sawed-off .22 caliber semi-automatic rifle with a 110-round magazine that was unregistered, to an undercover agent. Chapman is a member of the United Blood Nation, commonly referred to as the “Bloods” street gang. “This conviction and sentencing takes an armed drug dealer with gang ties off the streets,” said U.S. Attorney Michael Easley. “We will continue to work with our law enforcement partners to investigate and prosecute the individuals contributing to the violence in our communities.” “ATF has always made the pursuit and capture of violent gang members a priority,” said Acting Special Agent in Charge Brian Mein. “These individuals have a major impact on public safety, often responsible for bringing in many of the illegal firearms recovered by ATF and our law enforcement partners.” According to court documents and other information presented in court, on May 13, 2021, Chapman and co-defendant Rhonesa Greene-McNeil sold an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent 476 grams of a mixture and substance containing methamphetamine. A few days later, Chapman contacted the undercover agent and asked if he was interested in purchasing two firearms. On the day of the sale, Chapman sent Greene-McNeil to handle the transaction. Greene-McNeil arrived and sold the ATF agent a sawed-off .22 caliber semi-automatic rifle with a 110-round magazine that was loaded with 62 rounds and a second magazine that appeared to hold 30 rounds, as well as a 9mm handgun. Chapman has prior convictions for Trafficking in Cocaine (1998 and 1999), Manufacturing, Dispensing, or Distributing or Possessing with the Intent to Distribute Heroin or Cocaine (2015), Bail Jumping (2017), and Possession with Intent to Sell or Deliver a Schedule II Controlled Substance (2020). Chapman had been released from prison in July 2020. Chapman pleaded guilty to three offenses on March 15, 2023: conspiracy to distribute and possess with the intent to distribute 50 grams or more of a mixture and substance containing methamphetamine; possession with the intent to distribute 50 grams or more of a mixture and substance containing methamphetamine; and possession of an unregistered sawed-off rifle. Greene-McNeil received a sentence of 120 months in prison for her role in these offenses. (Case Number 7:22-CR-0025-FL-1) This is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms, the New Hanover and Brunswick County Sheriffs’ Offices, and the Wilmington Police Department investigated the case and Assistant U.S. Attorneys Timothy Severo and Gabe Diaz prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-0025-FL-4.


title: Armed Drug Trafficker Sentenced To Nine Years For Possessing Firearm And Distribution Quantities Of Fentanyl

component: USAO - Florida, Middle

body_text: Tampa, Florida – Senior U.S. District Judge Susan Bucklew has sentenced Eugene Washington, Jr. (36, Bradenton) to nine years in federal prison for possession of a firearm by a convicted felon and possession with the intent to distribute 40 grams or more of fentanyl. Washington had pleaded guilty on June 7, 2023. According to the plea agreement, on the morning of August 12, 2022, officers from the Bradenton Police Department (BPD) responded to a call for service from a concerned citizen regarding an unresponsive individual sitting in the driver’s seat of his vehicle around the 700 block of 9 th Street East in Bradenton. The car was stopped in traffic, facing the traffic light in the median lane. Once at the scene, the BPD officers asked Washington to exit the vehicle. As Washington exited the car, the officers noticed a silver and black Smith and Wesson SD40 .40 caliber pistol on the driver’s seat. Washington turned back into the car and appeared to reach for the firearm. The firearm was loaded with 11 rounds of ammunition. Also recovered from inside the vehicle was a backpack, located on the passenger floorboard, that backpack contained a variety of controlled substances, including: 44.07 grams of fentanyl, 35.06 grams of methamphetamine, 93.86 grams of cocaine base, 13.91 grams of cocaine, 36.28 grams of hydrocodone, 9.99 grams of oxycodone, 433.37 grams of dimethylpentylone (a substituted cathinone), and 21.35 grams of cannabis. Washington later admitted that he had previously been convicted of distributing heroin and had served a federal prison sentence for that offense. As a convicted felon, Washington is prohibited from possessing a firearm or ammunition under federal law. This case was investigated by the Bradenton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Diego F. Novaes. 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.


title: Bronx Man Charged With Stealing Hundreds Of Thousands Of Dollars’ Worth Of Construction Utility Vehicles From NYCHA Housing Developments

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of a Complaint charging MAXIMO NUNEZ with theft of government property and conspiracy to commit theft of government property in connection with a years-long scheme in which he and others stole valuable construction utility vehicles (“Utility Vehicles”) from New York City Housing Authority (“NYCHA”) developments. NUNEZ was arrested this morning and will be presented before U.S. Magistrate Judge Sarah Netburn later today. U.S. Attorney Damian Williams said: “As alleged, the defendant and others carried out a brazen scheme for years, stealing hundreds of thousands of dollars in valuable construction equipment that NYCHA needed to maintain the many public housing developments that thousands of New Yorkers call home. Thanks to the persistent efforts of the New York City Department of Investigation and the Special Agents and career prosecutors of my Office, this man now stands charged with this bold scheme.” DOI Commissioner Jocelyn E. Strauber said: “As charged, Nunez and other co-conspirators stole at least 16 utility vehicles worth over several hundred thousand dollars from NYCHA. These vehicles are used to maintain NYCHA facilities for residents. NYCHA referred this matter to DOI and cooperated in this investigation, which involved the placement of GPS tracking devices on certain NYCHA utility vehicles and allowed law enforcement to recover one of the allegedly stolen vehicles. I thank the U.S. Attorney’s Office for the Southern District of New York for their partnership in this investigation and their commitment to hold accountable those who steal valuable government property.” According to the allegations contained in the Complaint: [1] From in or about January 2021 through in or about September 2022, on at least 13 different occasions, NUNEZ and three other co-conspirators (“CC-1,” “CC-2,” and “CC-3”) stole at least 16 Utility Vehicles from over a dozen NYCHA developments throughout New York City. Utility Vehicles are pieces of heavy equipment that NYCHA uses to complete regular construction and maintenance tasks. NUNEZ and others stole the Utility Vehicles in the middle of the night when NYCHA employees were not present. They often used large trucks to carry out their scheme so that they could steal more than one Utility Vehicle at a time. Photographs taken from surveillance video of two of the thefts are below: Utility Vehicles often retail for anywhere from $25,000 to $65,000 each. NUNEZ and others made hundreds of thousands of dollars by selling the Utility Vehicles to individuals who did not know that they were stolen. * * * NUNEZ, 28, of the Bronx, New York, is charged with one count of conspiracy to commit theft of government property, which carries a maximum potential sentence of five years in prison, and one count of theft of government property, which carries a maximum potential sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of DOI and the Special Agents and Investigative Analysts of the U.S. Attorney’s Office. This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jackie Delligatti is in charge of the prosecution. The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.


title: Maryland Man Charged with Leading Multi-State Sex Trafficking Network

component: USAO - Virginia, Western

body_text: CHARLOTTESVILLE, Va. – The FBI’s I-81 Human Trafficking Task Force has charged a Maryland man with using drug dependency to force at least five adult victims into commercial sex work, United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, announced today. William Oneil Murray III, 35, was indicted yesterday on three counts of sex trafficking through force, fraud, and coercion, one count of transporting individuals for the purpose of prostitution, and one count of using a facility of interstate commerce to facilitate prostitution. “Human trafficking is a form of modern-day slavery, and those who perpetrate it must be held accountable,” United States Attorney Christopher R. Kavanaugh said today. “Exploiting victims’ drug dependency and addiction is the most common form of human trafficking we are seeing here in Virginia, and I am grateful to the I-81 Human Trafficking Task Force and the Virginia State Police for bringing this case to justice and providing some relief to these victims.” “We are proud of the work the I-81 Human Trafficking Task Force is accomplishing via these multi-state partnerships. This case demonstrates how victims’ vulnerabilities are used against them and highlights the dedication of the men and women who work to bring justice for them,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division. “ If you are a victim of human trafficking or you have information about a potential trafficking situation, call the National Human Trafficking Resource Center at 1-888-373-7888, where resources are available.” “This case highlights the importance of having trained law enforcement at the federal, state, and local levels working together to combat human trafficking in the Commonwealth and abroad,” said Colonel Gary T. Settle, Virginia State Police Superintendent. “This investigation demonstrates the zero tolerance Virginia law enforcement, the FBI and the U.S. Attorney’s Office have for those who prey on vulnerabilities and exploit other human beings for personal profit or gain.” According to court documents, from as early as 2016 through July 2022, Murray engaged in a multi-state sex trafficking operation involving at least five adult female victims. Murray controlled his victims’ narcotics use, not allowing them to obtain drugs from anyone but himself, therefore taking complete control of each victim’s drug dependency. In order to further control his victims and force them into commercial sex work, Murray withheld drugs from them, making them “dope sick,” a term one victim described as being like the flu but five times worse, based on withdrawal symptoms from heroin and other opiates. Murry maintained strict control over his victims’ activities. Victims were not allowed to go anywhere without Murray’s permission and were punished if they did so. Court documents also claim Murray took all of his victims’ cell phones. Occasionally, Murray allowed his victims to use one of his phones to communicate with commercial sex customers but would regularly get print outs of call and text logs to ensure the victims were not texting or calling anyone but customers. The alleged criminal behavior occurred in Virginia, Maryland, Pennsylvania, North Carolina, West Virginia, New York, New Jersey, and Florida. The Federal Bureau of Investigation’s I-81 Human Trafficking Task Force (I-81 HTTF) and the Virginia State Police are investigating the case. The I-81 HTTF is a collaborative effort of law enforcement and community partners focused on identifying instances of human trafficking along the I-81 corridor in the northern Shenandoah Valley of Virginia, West Virginia, and Maryland; prosecuting those responsible; and providing assistance to the victims impacted by these crimes. The I-81 HTTF includes law enforcement from the counties of Frederick, Clarke, and Shenandoah as well as the cities and towns of Front Royal, Hagerstown, and Frederick, Maryland, and Lord Fairfax Community College. Assistant U.S. Attorneys Melanie Smith and Sally Sullivan are prosecuting the case for the United States. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Buffalo man going to prison for more than 20 years for selling heroin and fentanyl that resulted in two deaths

component: USAO - New York, Western

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Isaiah Spain a/k/a Q, 39, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 10 grams or more of butyryl fentanyl, heroin, fentanyl, and furanyl fentanyl, was sentenced to serve 250 months in prison by U.S. District Judge Richard J. Arcara. Assistant U.S. Attorney Meghan E. Leydecker, who handled the case, stated that in August 2018, The West Seneca Police Department, New York State Police and DEA began investigating Spain’s drug trafficking activities. The investigation determined that Spain conspired with others to sell heroin, fentanyl, butyryl fentanyl and furanyl fentanyl, sales of which were subsequently linked with numerous drug overdoses, including two fatalities. On November 4, 2017, Amherst Police responded to a 911 call in Williamsville, NY, where they located an unresponsive individual, identified as S.D., who was pronounced dead at the scene of an apparent drug overdose. The substances used by S.D. were purchased from Spain by another individual and sold to S.D. On August 24, 2018, West Seneca Police responded to a residence for a reported drug overdose. Upon arrival, an individual identified as S.C. was pronounced dead at the scene from an apparent drug overdose. The substances used by S.D. were purchased from Spain. Between October 2018, and January 2019, investigators conducted a combined total of 13 controlled buys of suspected controlled substances from Spain. Following each controlled buy, the suspected controlled substance was analyzed and confirmed to contain butyryl fentanyl. The sentencing is the result of an investigation by the West Seneca Police Department, under the direction of Chief Edward Baker, the New York State Police, under the direction of Major Eugene Staniszewski, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division. # # # #


title: Prior Felon Found Guilty Of Drug Trafficking And Firearms Offenses

body_text: PENSACOLA, FLORIDA – Willie Frank Gordon, 41, of Pensacola, Florida, was found guilty by a federal jury of possession with intent to distribute methamphetamine and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. The guilty verdict was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. On March 15, 2022, Gordon was arrested during a traffic stop for driving without a license. During an inventory search of the vehicle, law enforcement located a black backpack containing approximately 200 grams of methamphetamine, cocaine, and fentanyl, and associated drug paraphernalia, along with a loaded, chambered pistol. Law enforcement also located a firearm holster in the glove box of the vehicle, three cell phones, and over $2,000 on Gordon’s person. Gordon denied knowledge of the controlled substances and the firearm, but ultimately admitted to his possession of the items during a custodial interview with investigators. Law enforcement also located surveillance footage of Gordon approximately 30 minutes prior to the traffic stop where he was observed carrying the black backpack to a vehicle before driving away. Prior to committing this offense, Gordon had been convicted in six state felony cases and one federal felony case, which included a prior drug trafficking conviction and firearms convictions. Trial testimony revealed that Gordon had previously shot people, and that law enforcement had information he was connected to fentanyl overdoses in Okaloosa County. At the time of his current offense, Gordon was on federal supervised release for his federal conviction of being a felon in possession of firearms and ammunition. Sentencing is currently set for February 14, 2024, at 9:00 a.m., at the United States Courthouse in Pensacola before United States District Judge M. Casey Rodgers. Gordon faces a mandatory minimum of 15 years in federal prison, with a maximum of life imprisonment. This conviction was the result of an investigation conducted by the Escambia County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Callahan prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: Luzerne County Woman Sentenced To 10 Months Imprisonment For Preparing And Submitting Numerous False Economic Injury Disaster Loan (EIDL) Applications In Covid-19 Fraud Scheme

component: USAO - Pennsylvania, Middle

body_text: SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Angela Castillo, age 39, of Freeland, PA, was sentenced on November 8, 2023, by United States District Judge Robert D. Mariani, to 10 months imprisonment, to be followed by a 3-year term of supervised release, with 5 months of electronic monitoring, in connection a wire fraud scheme involving the preparation and submission of numerous false Economic Injury Disaster Loan (EIDL) applications. According to United States Attorney Gerard M. Karam, between June 2020 and September 2020, on behalf of other individuals and in exchange for payment, Castillo prepared and submitted to the United States Small Business Association (SBA) at least 40 false EIDL applications containing material misrepresentations. Castillo’s conduct resulted in the SBA paying out approximately $163,000.00 in COVID-19 relief funds to individuals, none of whom actually owned a qualifying small business and who therefore were not entitled to receive such funds under the program. At her sentencing, Castillo was ordered to pay $163,000.00 in restitution to the SBA. The case was investigated by the Internal Revenue Service – Criminal Investigations. Assistant U.S. Attorney Jeffery St John prosecuted the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. # # #


title: Rochester brothers sentenced in separate cases stemming from the murder of RPD investigator

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that James Fulton, 41, and his brother, Preston Fulton, 39, both of Rochester, NY, were sentenced by U.S. District Judge David G. Larimer in separate cases stemming from the investigation into the murder of Rochester Police Department Investigator Anthony Mazurkewicz and the assault of Investigator Sino Seng. James Fulton, who was convicted of the Attempted Hobbs Act robbery of an alleged local drug dealer, was sentenced to serve 105 months in prison. Preston Fulton, a prior felon, was sentenced to serve 18 months in prison for being a felon in possession of a loaded firearm. Assistant U.S. Attorney Douglas E. Gregory, who handled the cases, stated that Investigators Anthony Mazurkewicz and Sino Seng were shot in the line of duty on July 21, 2022. Mazurkewicz died as a result of his injuries. In the aftermath of the shootings, an investigation began into several associates of Kelvin Vickers, the man recently convicted of killing Investigator Mazurkewicz and injuring Investigator Seng. On September 20, 2022, investigators conducted a vehicle stop of James Fulton as he drove away from a Gothic Street residence. During a search of the vehicle, they recovered two firearms and ammunition, as well as items commonly utilized in a robbery, including a roll of duct tape, new/unused zip ties, a pry bar, zip ties fashioned into flex cuff style leg and hand restraints, and a black ski mask. At the time of his plea, James Fulton admitted that he intended to rob an alleged drug dealer. On October 1, 2022, Preston Fulton was given a firearm to hide for co-defendant Brandon Washington. After receiving the firearm, Fulton was followed by investigators to a Ferncliffe Drive residence, where he was observed carrying firearm into the residence. A search warrant was executed the following day at the residence and investigators recovered a loaded .45 caliber semi-automatic handgun, along with numerous rounds of additional ammunition. Charges remain pending against co-defendant Brandon Washington. The sentencings are the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division. # # # #


title: Foreign National Charged with International Drug Trafficking

body_text: An indictment was unsealed in the District of Columbia today charging a foreign national with international fentanyl, heroin, methamphetamine, cocaine, and marijuana trafficking. According to court documents, between January 2017 and April 2021, Juan Carlos Morgan Huerta, aka Cacayo, conspired to import large quantities of fentanyl, heroin, methamphetamine, cocaine, and marijuana from Mexico into the United States. Morgan Huerta is charged with conspiracy to manufacture and distribute 400 grams or more of fentanyl, one kilogram or more of heroin, 500 grams or more of methamphetamine, five kilograms or more of cocaine, and over 1,000 kilograms of marijuana for importation into the United States. If convicted, Morgan Huerta faces a mandatory minimum of 10 years in prison and a statutory maximum penalty of life in prison. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Drug Enforcement Administration (DEA) Administrator Anne Milgram, and Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI) made the announcement. The Organized Crime Drug Enforcement Task Forces (OCDETF) supported the case. The FBI Tucson Field Office, OCDETF Strike Force, DEA Nogales Field Division, and HSI Tucson Field Office are investigating this case. Trial Attorneys Kirk Handrich and Lernik Begian of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs and Criminal Division’s Office of Enforcement Operations provided significant assistance. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Susquehanna County Man Sentenced To Six Years’ Imprisonment For Methamphetamine Trafficking

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Clifford Johnson, age 59, of Franklin Township, Pennsylvania, was sentenced on November 8, 2023, by U.S. District Court Judge Robert D. Mariani, to six years’ imprisonment on the charges of distribution of methamphetamine and conspiracy to distribute methamphetamine. According to United States Attorney Gerard M. Karam, Johnson previously pleaded guilty and admitted to distributing and conspiring with others to distribute between 500 and 1500 grams of high-quality crystal methamphetamine in the Susquehanna County area between August 2019 and April 2020. Investigators made three separate purchases of crystal methamphetamine from Johnson and then obtained a search warrant for Johnson’s residence in Susquehanna County where an additional amount of crystal methamphetamine was seized. The charges against the defendant resulted from an investigation conducted by the Pennsylvania State Police and the Drug Enforcement Administration (DEA). Assistant United States Attorney Robert J. O’Hara prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. # # #


title: New Orleans Man Pleads Guilty to Violating Federal Gun Control Act

body_text: NEW ORLEANS, LOUISIANA – AARON HENDERSON , age 26, a resident of New Orleans, pleaded guilty on November 1, 2023 before United States District Judge Sarah S. Vance, to possession a firearm after being convicted of a felony, announced U.S. Attorney Duane A. Evans. HENDERSON , a convicted felon who was prohibited from possessing firearms, came to the attention of law enforcement after the New Orleans Police Child Abuse Unit received a video depicting him in a room with a three-year-old boy, while armed with a Draco 7.62 mm rifle, and rapping song lyrics. HENDERSON encouraged the three-year-old to pick up a handgun located on a bed. As a result, the child picked up the gun and waived it around. HENDERSON faces up to fifteen years in prison and up to three years of supervised release, and up to a $250,000 fine. He also faces a mandatory special assessment fee of $100. Sentencing is set for February 21, 2024 at 10:30 a.m. before Judge Vance. 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 Federal Bureau of Investigation and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney David Haller of the Violent Crime Unit.


title: Twenty-Nine-Year-Old Pascua Yaqui Man Sentenced to 120 Months in Prison for Molesting Fellow Tribal Member 10 Years Earlier

component: USAO - Arizona

body_text: TUCSON, Ariz. – Orlando Miguel Valenzuela, 29, of Tucson, was sentenced on Monday by United States District Judge Cindy K. Jorgenson to 10 years in prison, followed by lifetime supervised release. Valenzuela pleaded guilty to Abusive Sexual Contact on January 23, 2023. In August 2019, the victim reported several instances of sexual abuse committed by Valenzuela that had occurred between 2013-2014, when the victim was under 12 years old and Valenzuela was over 18 years old. Valenzuela was located by law enforcement and indicted in April 2022. When Valenzuela is released from prison, he will be required to register as a sex offender for the rest of his life. The Federal Bureau of Investigation and the Pascua Yaqui Police Department conducted the investigation in this case. Assistant U.S. Attorney, Micah Schmit, District of Arizona, Tucson, handled the prosecution. CASE NUMBER: 22-CR-0682-TUC-CKJ RELEASE NUMBER: 2023-173_Valenzuela # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: “Head Of Legal And Compliance” For Multibillion-Dollar Cryptocurrency Pyramid Scheme “OneCoin” Pleads Guilty

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that IRINA DILKINSKA pled guilty today in Manhattan federal court to wire fraud and money laundering charges in connection with her participation in the massive OneCoin fraud scheme. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. As a result of misrepresentations made about OneCoin, victims invested over $4 billion worldwide in the fraudulent cryptocurrency. Today, U.S. District Judge Edgardo Ramos accepted DILKINSKA’s guilty plea. U.S. Attorney Damian Williams said: “As OneCoin’s so-called ‘Head of Legal and Compliance’ Irina Dilkinska accomplished the exact opposite goal of her position. As she has now admitted, Dilkinska facilitated the laundering of millions of dollars of illicit profits OneCoin accrued through its multi-level-marketing scheme. The dedicated prosecutors of this Office and our law enforcement partners will continue to pursue this important case until every defendant is brought to justice.” According to the allegations in the Superseding Information and other filings and statements made in court: In 2014, RUJA IGNATOVA, a/k/a “the Cryptoqueen,” and KARL SEBASTIAN GREENWOOD co-founded OneCoin, [1] a company based in Sofia, Bulgaria, that marketed a purported cryptocurrency by the same name, which was in fact a fraudulent pyramid scheme. OneCoin operated as a MLM network through which members received commissions for recruiting others to purchase cryptocurrency packages. This MLM structure influenced rapid growth of the OneCoin member network. Indeed, according to OneCoin’s promotional materials, over three million people invested in fraudulent cryptocurrency packages. OneCoin records show that between the fourth quarter of 2014 and the fourth quarter of 2016 alone, OneCoin generated €4.037 billion in sales revenue and earned “profits” of €2.735 billion. DILKINSKA was the purported Head of Legal and Compliance for OneCoin. But rather than ensuring that OneCoin complied with the law, DILKINSKA assisted in running its day-to-day operations and laundered money for OneCoin, including arranging for the transfer of $110 million in fraudulently obtained OneCoin proceeds to a Cayman Islands entity. On October 12, 2017, IGNATOVA was charged with OneCoin-related fraud and money laundering charges in the U.S. District Court for the Southern District of New York and a federal warrant was issued for her arrest. On October 25, 2017, IGNATOVA traveled on a commercial flight from Sofia, Bulgaria, to Athens, Greece; she has not been seen publicly since. IGNATOVA was added to the Federal Bureau of Investigation’s (“FBI”) Top Ten Most Wanted List in June 2022. The FBI is offering a $100,000 reward for information leading to IGNATOVA’s arrest. * * * DILKINSKA, 42, a citizen of Bulgaria, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of five years in prison, and one count of conspiracy to commit money laundering, which also carries a maximum potential sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge. Sentencing before Judge Ramos is scheduled for February 14, 2024, at 10:00 a.m. Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation and the FBI, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office. If you have any information about IGNATOVA’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov . The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Folly, Juliana N. Murray, and Kevin Mead are in charge of the prosecution. [1] OneCoin has operated using several corporate entities and d/b/a names, including “OneCoin Ltd.,” “OnePayments Ltd.,” “OneNetwork Services Ltd.,” “OneAcademy,” and “OneLife.” These entities and d/b/a names are referred to collectively here as “OneCoin.”


title: Three Miami residents charged with COVID-19 pandemic relief fraud

component: USAO - Florida, Southern

body_text: MIAMI – On Nov. 1, a Miami federal grand jury charged three Miami residents for their alleged role in a COVID-19 relief fraud scheme. Heidi Cid, 54, Lazaro Verdecia Hernandez, 36, and Yadier Rodriguez Arteaga, 38 all of Miami, Florida, have been charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering and money laundering, in connection with a scheme to obtain fraudulent loans under the Paycheck Protection Program (PPP). According to the allegations in the indictment and statements made in court, Cid, Verdecia Hernandez, and Rodriguez Arteaga allegedly submitted fraudulent PPP loan applications to SBA-approved PPP lenders. In support of the fraudulent loan applications, the defendants allegedly submitted several false and fraudulent documents misrepresenting the number of the companies’ employees to make the businesses appear eligible for pandemic relief. According to the allegations, SBA-approved lenders disbursed over $14.5 million to bank accounts controlled by co-conspirators, who allegedly would then withdraw the money and give Cid, Verdecia Hernandez, and Rodriguez Arteaga a portion of the proceeds. Cid, Verdecia Hernandez, and Rodriguez Arteaga made their initial appearance in federal magistrate court in Miami. If convicted, they face up to 20 years in prison on the conspiracy and fraud counts, and two years on the money laundering counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Rafael Barros for the United States Secret Service (USSS), and SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, announced the charges. USSS Miami and SBA OIG investigated the case. Assistant U.S. Attorney Thomas Haggerty is prosecuting it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture. The following defendants have pleaded guilty for their involvement in this COVID-19 relief fraud scheme (sentencing information is noted where available): Roberto Lopez, Kenia Carrillo, Lester Hedman Safont, Oreste Ruiz Linares, Honolio Navarro Caballero, Barbara Alvarez, and Alfredo Contrera, all of Miami, Florida (22-cr-20368). Assistant U.S. Attorney Thomas Haggerty is prosecuting this case. Jorge Trueba Lopez, of Miami, Florida (21-cr-20382). Assistant U.S. Attorney Thomas Haggerty is prosecuting this case. Nancy Saavedra Torres, of Miami, Florida (21-cr-20225). Assistant U.S. Attorney Thomas Haggerty is prosecuting this case. Felix Martinez and Yailin Perez, both of Miami, Florida (21-cr-20276). Yoliesse Sarmiento Carrion of Miami, Florida (22-cr-20530). Assistant U.S. Attorney Thomas Haggerty is prosecuting this case. Osiel Rodriguez Furgel, of Miami, Florida (21-cr-20251). Assistant U.S. Attorney Thomas Haggerty is prosecuting this case. Leonardo Gonzalez Lopez, of Miami, Florida (23-cr-20113). His sentencing hearing is scheduled on Nov. 28, at 9:30 a.m. in Miami. Assistant U.S. Attorney Thomas Haggerty is prosecuting this case. Giraldo Caraballo, of Miami, Florida (21-cr-20264). Assistant U.S. Attorney Eli Rubin is prosecuting this case. Nancy Bahos Serna, of Miami, Florida (23-cr-20310) has made her initial appearance in federal court. Assistant U.S. Attorney Daniel Bernstein is prosecuting this case. Javier Pico, of Miami, Florida, and Erisbel Gonzalez Gomez, of Palm Beach County, Florida (22-cr-20368) have been charged for their alleged involvement in the scheme but remain fugitives. An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law. In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov , under case number 23-cr-20421. ###


title: Braymer Man Sentenced to 30 Years for Meth Trafficking

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Braymer, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute substantial quantities of methamphetamine. Jason M. Potter, 41, was sentenced by U.S. District Judge Roseann Ketchmark on Wednesday, Nov. 8, to 30 years in federal prison without parole. Potter was found guilty at trial on Feb. 16, 2023, of one count of conspiracy to distribute methamphetamine and one count of possessing methamphetamine with the intent to distribute. Potter and co-defendant Daniel Dryden, 52, of Clinton, Mo., participated in a conspiracy to distribute methamphetamine from May 11 to July 15, 2020. Dryden was sentenced on June 29, 2023, to three years in federal prison without parole. Lee’s Summit, Mo., police officers saw Potter’s black 2009 Nissan Maxima parked in the parking lot of America’s Best Value Inn on July 15, 2020. When Potter and Dryden came out of the hotel, Potter placed a black computer case and a blue cloth shopping bag in the rear passenger seat of the Maxima. Potter went back into the hotel while Dryden drove the Maxima to the front of the business, near the lobby doors. Potter came out of the hotel and got into the front passenger seat of the Maxima. Dryden drove out of the parking lot onto Blue Parkway. Officers stopped the Maxima and arrested Potter, who had an outstanding parole warrant. Potter was in possession of 4.8 grams of methamphetamine and $3,610 in cash at the time of his arrest. Officers searched the Maxima and found the computer bag, which contained several baggies with a total of 648.6 grams of methamphetamine, drug paraphernalia, and a money bag with more than $3,000 in cash. According to court documents, Potter stayed at America’s Best Value Inn in Lee’s Summit, Mo. He was a friend of the motel’s manager, stayed in different rooms in the motel, and used it as his “main hub” for methamphetamine distribution. This case was prosecuted by Assistant U.S. Attorneys Maureen A. Brackett and Stephanie C. Bradshaw. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee’s Summit, Mo., Police Department, and the Springfield, Mo., Police Department.


title: Honduran National Pleads Guilty to Illegal Re-Entry

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that on November 7, 2023 HUGO BRIAN FUENTAS-EGUIGURENS (“ FUENTAS-EGUIGURENS ”), age 27, plead guilty on November 7, 2023 to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a). According to court documents, FUENTAS-EGUIGURENS reentered the United States after being previously deported on April 26, 2019. On March 31, 2023, FUENTES-EGUIGURENS was arrested by the Jefferson Parish Sheriff’s Office on March 31, 2023 and found to be unlawfully present in the United States by United States Immigration and Customs Enforcement. It was also discovered that FUENTES-EGUIGURENS had previous convictions for simple escape, burglary and resisting arrest by using a false identification. FUENTAS-EGUIGURENS faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee. U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.


title: Two Men Charged With Orchestrating $7 Million Investment Fraud Scheme

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that DERRICK HODGE and ISAAC BRIGGS III have been charged with running an investment fraud scheme through which they defrauded investors of approximately $7 million and misappropriated over $1.5 million of investor funds for personal use. HODGE and BRIGGS III were arrested today. BRIGGS III will be presented today in the U.S. District Court for the Southern District of New York, and HODGE will be presented today in the U.S. District Court for the Eastern District of Louisiana. U.S. Attorney Damian Williams said: “As alleged, Derrick Hodge and Isaac Briggs III solicited millions of dollars of victim investments based on false promises of outsized returns. Instead of using those funds to generate profits for investors, as promised, Hodge and Briggs III allegedly took those investments for themselves, using investor funds to pay for personal travel, entertainment, and luxury fashion purchases. As we’ve shown time and time again, this Office will be tireless in prosecuting those who misappropriate investor funds to line their own pockets.” FBI Assistant Director in Charge James Smith said: “For more than three years, Hodge and Briggs allegedly misled and deceived their victims out of more than seven million in investment funds, which they used in part for their own personal expenses. Investment fraud schemes not only can ruin a victim’s life savings, but also erode the public’s faith in our financial institutions. The FBI will continue to ensure that unscrupulous actors attempting to swindle investors are brought to justice.” As alleged in the Complaint: [1] From at least October 2020 through at least in or about November 2023, DERRICK HODGE and ISAAC BRIGGS III operated an investment fraud scheme that defrauded at least seven victims of at least $7 million. HODGE and BRIGGS III operated this fraudulent scheme through their operation of the Heritage Integrity Investment Trust (“HIIT”). HODGE and BRIGGS III falsely represented that victim funds would be invested in HIIT’s private placement trading program that would provide a return of five times the initial investment. HODGE and BRIGGS III did not invest victim funds in any trading program. Instead, HODGE and BRIGGS III transferred their victims’ investments through intermediary accounts to their personal accounts and used them to make payments for personal expenses such as food, travel, entertainment, and luxury goods. * * * HODGE, 52, of Avondale, Louisiana, and BRIGGS III, 52, of Somerset, New Jersey, are each charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison. BRIGGS III is also charged with one count of aggravated identity theft, which carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other prison term. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. Mr. Williams praised the outstanding investigative work of the FBI. This case is being supervised by the Office’s General Crimes Unit. Assistant U.S. Attorney William C. Kinder is in charge of the prosecution. The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Convicted Felon Sentenced for Trafficking Over 6 Kilograms of Cocaine

component: Drug Enforcement Administration (DEA)

body_text: RICHMOND, Va. – A Mexican citizen was sentenced today to 13 years in prison for possessing with the intent to distribute over six kilograms of cocaine in Chesterfield County. According to court documents, on April 17, 2023, Francisco Celedon, 47, met with a law enforcement confidential informant to deliver 6.053 kilograms of cocaine. Celedon was a drug courier for a Mexican drug trafficking organization. At the time of the offense, Celedon was on federal supervised release for a prior federal drug trafficking crime in the Middle District of Alabama. Celedon was sentenced to 10 years in prison for the possession with the intent to distribute charge and 3 years in prison for violations of his federal supervised release stemming from his prior conviction. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Colonel Jeffrey S. Katz, Chesterfield County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert and Shea Gibbons and Special Assistant U.S. Attorney Ellen Hubbard prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-69.


title: Federal Grand Jury Charges Former Army Private with  Four Additional Felony Child Exploitation Charges

component: USAO - California, Central

body_text: LOS ANGELES – A former Army private based at Fort Irwin in San Bernardino County is scheduled to be arraigned today on federal charges alleging, in part, that he knowingly produced child sexual abuse material (CSAM) featuring a 14-year-old girl. Parker William White, 23, of Johnsonville, New York, who first was indicted on March 10 with one count of possession of child pornography, was charged in a superseding indictment with four additional felony child exploitation charges. White is now charged with five felonies: one count of production of child pornography, three counts of receipt of child pornography, and one count of possession of child pornography. White was arrested on February 24 pursuant to a criminal complaint that alleges White used Instagram and other social media platforms to find minor “girlfriends” as young as 13. White would groom these minor girls by telling them that he would treat them like “queens,” according to the complaint’s affidavit. A March 14, 2024 trial date previously has been scheduled in this matter. White is currently in federal custody and has been ordered jailed without bond. The superseding indictment returned on Tuesday alleges that in November 2021, White knowingly induced a 14-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The visual depiction was produced using materials that had been mailed, shipped, and transported in and affecting interstate commerce. The indictment further alleges that on three occasions in November 2021 and January 2022, White knowingly received child sexual abuse material that had been transported through interstate commerce, including by computer. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted of all charges, White would face a mandatory minimum of 15 years in federal prison and a statutory maximum sentence of 30 years in federal prison for the production of child pornography count, a mandatory minimum of five years in federal prison and up to 20 years’ imprisonment for each receipt of child pornography count, and a statutory maximum sentence of 10 years in federal prison for the child pornography possession count. Homeland Security Investigations and the United States Army Criminal Investigation Division investigated this case. Assistant United States Attorney Lyndsi Allsop of the Violent and Organized Crime Section is prosecuting this case.


title: Trafficker sentenced to prison for smuggling $1.5M worth of cocaine in produce boxes

component: USAO - Texas, Southern

body_text: McALLEN, Texas – A 50-year-old Mexican national has been ordered to federal prison for possession with intent to distribute 88.5 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani. Faustino Perez Luna pleaded guilty May 23. U.S. District Judge Randy Crane has now ordered Luna to serve 70 months in federal prison. In handing down the sentence, the court noted it was a serious offense and involved a lot of narcotics. On Nov. 13, 2022, Perez Luna was driving a tractor trailer loaded with cocaine. The drugs were the priority load of a known drug trafficking organization. Luna approached the Falfurrias checkpoint and claimed to be headed to Atlanta to drop a load of produce. However, a K-9 soon alerted to the presence of narcotics within the vehicle. Authorities referred him to secondary inspection where they discovered the cocaine concealed between produce boxes on the tractor trailer. The drugs weighed approximately 88.5 kilograms with an estimated street value of $1.5 million. From March 2022 to Nov. 13, 2022, law enforcement arrested several others in connection with this drug trafficking organization. It operated in the lower Rio Grande Valley transporting either narcotics, guns or money. The investigation led to the discovery of the priority load – the 88.5 kilograms Luna had transported. It was intended for Atlanta, Georgia. Luna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Eric D. Flores prosecuted the case.


title: Justice Department Files Lawsuit and Proposed Consent Decree to Prohibit Koch Foods from Imposing Unfair and Anticompetitive Termination Penalties in Contracts with Chicken Growers

component: Antitrust Division

body_text: The Justice Department filed a civil lawsuit under the Sherman Act and Packers and Stockyards Act today against Koch Foods Incorporated (Koch), the fifth largest poultry processor in the United States. The complaint alleges that Koch anticompetitively and unfairly required chicken farmers, or growers, to pay Koch a termination penalty to switch from working for Koch to a rival chicken processor. At the same time, the department filed a proposed consent decree that would prohibit Koch from penalizing growers for switching processors and require Koch to return certain expenses, fees and penalties it unlawfully imposed on growers who tried to work for other chicken processors. “Antitrust and competition laws protect growers’ right to benefit from competition for their products, their services and their labor,” said Deputy Assistant Attorney General Michael Kades of the Justice Department’s Antitrust Division. “This enforcement action marks another important step in the division’s renewed partnership with the Department of Agriculture to promote free and fair competition and reinvigorate enforcement of the Packers and Stockyards Act.” “The Packers and Stockyards Act stands for fairness, and that’s what this enforcement action today delivers,” said Senior Advisor for Fair and Competitive Markets Andy Green of the Department of Agriculture (USDA). “This action to protect growers’ right to compete signals the joint commitment of the USDA and Justice Department to open competitive markets.” The complaint alleges that Koch, which operates processing facilities in Alabama, Georgia, Mississippi and Tennessee, deterred farmers from switching to other processors by requiring them to repay a substantial share of their income as a penalty if they terminated their contract. As alleged in the complaint, Koch’s termination penalty, which varies across chicken growers, amounted to more than half of most growers’ total annual take-home income and sometimes more than one year’s entire take-home earnings. Koch used the threat of the termination penalty to discourage growers from switching to Koch’s competitors and sued or threatened to sue more than a dozen family farmers who tried to switch to a Koch competitor. Accordingly, the termination penalty operated as an anticompetitive, de facto noncompete clause, in violation of the Sherman Act. The penalty provision is also an unfair practice or device in violation of the Packers and Stockyards Act, a landmark statute passed in 1921 that protects livestock and poultry producers. At the same time, the Antitrust Division filed a proposed consent decree to address its competition concerns. If approved by the court, the proposed consent decree would require Koch to: Inform all current growers with contracts containing a termination penalty provision that Koch will not enforce the provision; Reimburse growers for all termination penalty payments and out-of-pocket legal expenses incurred as a result of Koch enforcing the termination penalty; Refrain from including a termination penalty obligation in any grower contracts and from taking any steps to collect any termination penalty payments for the next seven years; Refrain from retaliating against, intimidating or harassing any grower who is involved in any dispute over a termination penalty or who cooperated with the Justice Department or USDA in their investigations of Koch’s termination penalty practices; and Meet certain reporting and compliance obligations including an annual certification for the next seven years that Koch is complying with the proposed final judgment. Today’s lawsuit and proposed consent decree are the second recent Packers and Stockyards Act enforcement action referred to the Justice Department by the USDA. In June, the U.S. District Court for the District of Maryland entered a consent decree to resolve an action alleging that the “tournament system” used by processor Wayne-Sanderson Farms to compensate chicken farmers violated the Packers and Stockyards Act. As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Civil Conduct Task Force, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Northern District of Illinois may enter the final judgment upon finding it is in the public interest. Anyone with information about anticompetitive conduct in agricultural industries or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or antitrust.complaints@usdoj.gov . Information about anticompetitive practices in livestock and poultry markets can also be submitted to the USDA’s and Justice Department’s Agricultural Markets Enforcement Partnership at www.farmerfairness.gov . View the complaint here. View the memo here.