title: Former Aequitas CEO and Company Executives Sentenced to Federal Prison for Roles in $300 Million Fraud Conspiracy

component: USAO - Oregon

body_text: PORTLAND, Ore.—Following their conviction at trial, three former executives of Aequitas Management, LLC, and associated companies, were sentenced to federal prison today for their roles in a vast fraud conspiracy wherein the executives raised nearly $300 million from defrauded investors. Robert J. Jesenik, 63, former chief executive officer of Aequitas and resident of Lake Oswego, Oregon, was sentenced to 14 years in prison and ordered to forfeit more than $1.5 million; Andrew N. MacRitchie, 59, formerly of Palm Harbor, Florida, was sentenced to 70 months in prison and ordered to forfeit $689,662; and Brian K. Rice, 56, of Portland, was sentenced to 37 months in prison and ordered to forfeit $116,627. Restitution will be determined at a later date. “When a large investment company led by greedy executives collapses, it can destroy the lives of the victim investors and their families. The victims in this case experienced delayed retirements, lost college savings, physical and mental illness, and many lives were forever changed because of these defendants,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office. “Bob Jesenik and other former Aequitas executives cheated their investors out of millions and went to extraordinary lengths to cover-up the rapidly-declining financial condition of their company. The sentences imposed today reflect the seriousness of these crimes and should serve as warning to other executives or financial professionals contemplating fraud as a viable path to wealth.” “This is one of the largest fraud cases ever investigated by the Portland FBI with hundreds of millions of dollars in losses,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “For years, the defendants deliberately deceived countless investors both internationally and domestically through an elaborate web of lies. Many of those investors were right here in Oregon. These sentences send a strong message that the FBI, our partners, and the United States Attorney's Office will continue to work together to investigate and prosecute those who perpetrate these kinds of fraud schemes for their personal gain.” “A scam is a scam, no matter how sophisticated or professional it appears,” said Adam Jobes, Special Agent in Charge, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “The extensive scale of this scheme was matched only by the efforts taken to unravel the truth. Unjust gain is never secure, and today’s sentencings demonstrate that IRS:CI is committed to holding fraudsters accountable for their actions.” According to court documents, Jesenik, MacRitchie, Rice, and others used Aequitas, formerly headquartered in Lake Oswego, to solicit investments in a variety of notes and funds, many of which were purportedly backed by trade receivables in education, health care, transportation, and other consumer credit areas. At its peak, Aequitas employed nearly 200 people. From June 2014 through February 2016, the former executives solicited investors by misrepresenting Aequitas’ use of investor money, the financial health and strength of the company and its subsidiaries, and the risks associated with its investments and investment strategies. Collectively, the defendants also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use of investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds. In 2005, Jesenik founded the Aequitas group of companies, and, as chief executive officer, controlled the organization’s structure and had ultimate decision-making authority over company activities. As elicited through trial testimony, Jesenik was a micromanager deeply entrenched in the day-to-day workings of Aequitas. He also served as the company’s principal pitchman, frequently telling others that Aequitas would one day rival leading asset management firms. MacRitchie was Aequitas’s executive vice president and chief compliance officer responsible for the development and implementation of risk management and compliance processes and procedures. MacRitchie oversaw the company’s accounting, legal, and auditing functions, and participated in fundraising. He also established Aequitas’s New York office and directed the company’s “Lux Fund,” a Luxembourg-based fund used to solicit international investors. Rice served as Aequitas’s executive vice president and president of wealth management. Among other responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitas’s affiliated RIAs. The company’s largest holdings were from various hospital networks, a consumer debt-consolidator, a motorcycle lender, and Corinthian Colleges, one of the nation’s largest operators of for-profit technical and post-secondary schools. The student loans Aequitas owned from Corinthian Colleges, valued at more than $200 million, were by far the company’s largest single category of receivables. By early 2014, the U.S. Department of Education began scrutinizing Corinthian’s graduation and job-placement rates and, by June of 2014, announced it would defer the payment of federal-aid funds to the schools. Soon after, Corinthian defaulted on its monthly recourse payment to Aequitas, costing the company more than $4 million per month. The collapse of Corinthian Colleges set off a series of events that ultimately led to Aequitas’s own demise. Meanwhile, Jesenik, MacRitchie, Rice, and others committed numerous financial crimes in an effort to conceal Aequitas’ bleak financial picture. In June 2014, they prepared a letter to investors claiming that Corinthian’s woes would not impact Aequitas’s ability to recoup its investment from student borrowers. At the same time, they continued soliciting new non-equity investments in the company, falsely claiming Aequitas used new investment funds to purchase receivables when, in reality, they were using the funds to pay the company’s bills and prior investors. By July 2014, Aequitas was effectively insolvent, and, in March 2016, the company collapsed. On July 13, 2022, a federal grand jury in Portland returned a 31-count superseding indictment charging Jesenik, MacRitchie, and Rice with one count each of conspiracy to commit mail and wire fraud and conspiracy to commit money laundering, and 28 counts of wire fraud. Jesenik was also charged with a single count of making a false statement on a loan application. On May 15, 2023, after a six-week trial, a federal jury found Jesenik, MacRitchie, and Rice guilty of conspiring with one another to commit mail and wire fraud and 28 individual counts of wire fraud. Jesenik was also convicted of making a false statement on a loan application. In 2019, former Aequitas executives and co-conspirators Brian A. Oliver, 58, of Aurora, Oregon, and Olaf Janke, 52, of Portland, pleaded guilty to conspiring to commit mail and wire fraud and money laundering. Janke will be sentenced on October 18, 2023, and, as part of his plea agreement, has agreed to pay full restitution. Following his death on July 7, 2023, Oliver’s guilty plea was vacated and his charges were dismissed. On May 26, 2022, former Aequitas senior executive and chief financial officer Nelson Scott Gillis, 70, of Lake Oswego, pleaded guilty to making a false statement to a bank. He will be sentenced on October 10, 2023, and has also agreed to pay full restitution. This case was investigated by the FBI, IRS-Criminal Investigation, and U.S. Department of Labor Employee Benefits Security Administration. It was prosecuted by Ryan W. Bounds and Christopher L. Cardani, Assistant U.S. Attorneys for the District of Oregon, and Siddharth Dadhich, Special Assistant U.S. Attorney for the District of Oregon. Assistant U.S. Attorney Hannah Horsley assisted the trial team.


title: Omaha Man Sentenced for Distributing Fentanyl

component: Federal Bureau of Investigation (FBI)

body_text: Acting United States Attorney Susan Lehr announced that Jerrell Jackson, 34, of Omaha, Nebraska, was sentenced on September 6, 2023, in federal court in Omaha for distributing fentanyl. United States District Judge Brian C. Buescher sentenced Jackson to 54 months in prison. There is no parole in the federal system. After Jackson’s release from prison, he will begin a three-year term of supervised release. On November 9, 2020, in Omaha, Jackson knowingly sold pills containing fentanyl to a witness cooperating with law enforcement. Jackson sold the cooperator approximately 50 fentanyl pills in exchange for $1,000. The 54-month sentence took into account that at the time Jackson sold the fentanyl, he was on federal supervised release following a conviction for being a felon in possession of a firearm. This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, and the Bellevue Police Department.


title: Sommelier Sentenced for Failing to Register as a Sex Offender

component: USAO - Nebraska

body_text: Acting United States Attorney Susan T. Lehr announced that Mark Bernal, a/k/a “Mark Reyes”, 49, of Omaha, Nebraska, was sentenced today in federal court in Omaha for failing to register as a sex offender pursuant to the Sex Offender Registration and Notification Act. United States District Court Judge Brian C. Buescher sentenced Bernal to imprisonment for 5 months in the Bureau of Prisons. There is no parole in the federal system. After his release from federal prison, Bernal will begin a 2-year term of supervised release. Additionally, Bernal was ordered to pay a fine of $5,000. On January 8, 2009, Bernal was convicted of possession of child pornography (3 counts) in Will County, Illinois. He was sentenced to three years in jail and has since been required to register as a sex offender in any state in which he resides pursuant to the Sexual Offender Registration and Notification Act (SORNA), a federal law. On June 15, 2021, Chicago police attempted to locate Bernal at his residence in Illinois after he was overdue for his annual sex offender registration. The building manager stated that Bernal moved out on April 1, 2021, with his new spouse but did not leave a forwarding address. In the summer of 2022, the U.S. Marshals Service (USMS) learned that Bernal was working as a sommelier in Nebraska using the name Mark Reyes. Bernal used the “Reyes” name in connection with his wine consulting business, which he established upon moving to Nebraska from Chicago. The USMS located a rental address for Bernal and his spouse in Omaha and subsequently observed him at the residence at that address on multiple occasions throughout the month of June 2022. Bernal and his spouse established utilities at the residence on January 5, 2022. Bernal did not register or attempt to register, nor did he update his sex offender registration pursuant to the requirements of SORNA between approximately April 1, 2021, and September 26, 2022, when he was arrested. This case was investigated by the United States Marshals Service.


title: Man Sentenced for Omaha Guitar Store Robbery

body_text: Acting United States Attorney Susan Lehr announced that Marco A. Lopez, 30, was sentenced today in federal court in Omaha, Nebraska, for robbery and brandishing a firearm during a crime of violence. United States District Court Judge Brian C. Buescher sentenced Lopez to 44 months’ imprisonment on the robbery charge and 91 months’ consecutive on the brandishing a firearm charge, resulting in a sentence of 135 months in the Bureau of Prisons. There is no parole in the federal system. After his release from federal prison, Lopez will begin a 3-year term of supervised release. On July 1, 2022, Omaha Police Department officers responded to a radio call to Ground Floor Guitar in Omaha for an armed robbery. The store owner told officers that two men entered the store separately before Marco Lopez entered the store. After entering the store, Lopez displayed a black handgun and robbed the store owner of cash and property, specifically several guitars and at least one amplifier. Several customers were also robbed by being instructed to “hand over their wallets.” Marco Lopez instructed all the victims to move down into the basement where he locked them and a dog into a bathroom, telling them not to come out or he would “shoot them,” while displaying a handgun. The victims eventually left the bathroom and called 911. On July 2, 2022, Omaha Police were responding to a tip related to a residential break-in, which identified Marco Lopez as a suspect. Marco Lopez and co-defendant Jorge Lopez are cousins. Investigators contacted and interviewed Jorge Lopez, who admitted that both he and Marco Lopez robbed the guitar store, and that Marco Lopez took the cash and guitars with him to Texas after the robbery. Police also searched a truck used in the robbery, finding a wallet belonging to one of the victims and other materials linking the truck to the robbery. Marco Lopez was located and arrested in Texas before being extradited to Nebraska. Co-defendant Jorge Lopez pleaded guilty to robbery and brandishing a firearm during a crime of violence and was sentenced on July 26, 2023, to 114 months’ imprisonment with three years of supervised release. This case was investigated by the Omaha Police Department.


title: Omaha Man Sentenced for Possessing Child Pornography

body_text: Acting United States Attorney Susan Lehr announced that Derric Shy, 41, of Omaha, Nebraska, was sentenced today in federal court in Omaha for distribution and receipt of child pornography. United States District Judge Brian C. Buescher sentenced Shy to 121 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Shy will serve 5 years of supervised release. Homeland Security Investigations (“HSI”) agents in Nebraska began investigating a chat application after receiving a case referral from an HSI agent in Detroit, Michigan, who was conducting undercover chats. The undercover agent observed users upload numerous videos of child pornography to a chat group, ‘#daugh.’ On January 10, 2022, the agent specifically observed user “kikaroo” post three videos of child pornography. HSI Detroit sent a subpoena to the chat application and learned that “kikaroo” was associated with Derric Shy. An IP address associated with the user also resolved to Shy. HSI forwarded the chats, videos, and user information to HSI Nebraska. On April 7, 2022, agents executed a search warrant at Shy’s residence. Agents interviewed Shy, who immediately admitted to knowing why they were there, stating it was because he was looking at stuff on the chat application at issue. Shy claimed the username “kikaroo” and admitted to viewing and sharing child pornography. Shy told agents they would find child pornography on his devices and provided the passcodes. Forensic examinations of Shy’s devices revealed at least nine videos of child pornography on Shy’s cell phone. Shy’s computer also showed artifacts related to the case investigation. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. This case was investigated by Homeland Security Investigations.


title: Fraud Charges Added Against Health Care Staffing Executive in Las Vegas

component: USAO - Nevada

body_text: LAS VEGAS - A federal grand jury in Las Vegas returned a superseding indictment yesterday charging a health care staffing executive with conspiring to fix the wages of Las Vegas nurses — and then fraudulently concealing that conspiracy and the government’s investigation so that he could sell his company for over $10 million. According to the six-count felony indictment, Eduardo Lopez, of Las Vegas, held executive positions at three different home health agencies. For each company, Lopez oversaw recruitment, hiring, retention and assignments of nurses and other health care staff. Count one of the superseding indictment charges Lopez and other unnamed co-conspirators with agreeing to suppress and eliminate competition for the services of nurses between March 2016 and May 2019. Counts two through six of the superseding indictment charge Lopez with wire fraud. According to the indictment, in December 2021, Lopez sold his health care staffing company for over $10 million and falsely represented to the buyer of his company that federal law enforcement was not investigating him or his company. But, according to court documents, Lopez knew that was false. FBI special agents had questioned Lopez, served Lopez with a grand jury subpoena addressed to his company and seized his cell phone pursuant to a search warrant. “Wage fixing hurts workers,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will aggressively investigate and prosecute wage-fixing conspiracies and any fraudulent conduct aimed at keeping the illicit profits of such conspiracies.” “Today’s superseding indictment demonstrates our ongoing commitment to enforce federal antitrust laws and to ensure workers have an opportunity to compete for employment in a fair marketplace,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We will continue to work with the Antitrust Division and our law enforcement partners to protect the right of workers to earn a fair wage, and to root out wrongdoers who commit unlawful anticompetitive conduct.” “The FBI and its partners will not tolerate the illicit practice of fixing wages,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “As today’s indictment shows, we will continue to pursue anyone engaging in fraudulent activity and combat any attempts made to evade the consequences of those actions.” A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. A violation of the wire fraud statute carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Antitrust Division’s San Francisco Office and the FBI’s International Corruption Unit investigated the case, with assistance from the U.S. Attorney’s Office for the District of Nevada. The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html . An indictment i s merely a n allegation . All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Canadian Woman Sentenced to 23 Years in Federal Prison for Her Role in Fentanyl Overdoses across Several States

component: USAO - North Dakota

body_text: FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that Marie Um , 42, from Montreal, Québec Canada, appeared before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, and was sentenced to 23 years in federal prison, $11,048.43 in restitution, and $300 special assessment for the charges of conspiracy to possess with intent to distribute and distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death; conspiracy to import controlled substances and controlled substance analogues resulting in serious bodily injury and death; and international money laundering conspiracy. On April 11, 2023, the trial of Marie Um commenced, in Fargo, North Dakota. Marie Um was part of an organization that was receiving fentanyl and fentanyl analogues from China and importing them into the United States. After 2 weeks of trial and 3 ½ days of deliberation, the jury found Marie Um guilty of conspiracy to distribute and import controlled substances into the United States and money laundering conspiracy. The jury found that 9 overdoses (4 deaths and 5 serious bodily injuries) were reasonably foreseeable to her. The overdoses were in North Dakota, Oregon, North Carolina, and New Jersey. This case is part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and fentanyl analogues and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington, DC, as part of “Operation Deadly Merchant.” The investigation started in North Dakota, on January 3, 2015, with the overdose death in Grand Forks, ND, of Bailey Henke. Operation Denial has led to thirty-one (31) defendants charged in North Dakota and three (3) defendants charged in Oregon. The investigation has resulted in nearly $1 million in cash and property forfeited from members of the organization. In 2021, Um was extradited from Canada to the United States with substantial assistance from the Office of International Affairs, a component of the Department of Justice. On August 31, 2021, the U.S. Department of State offered a reward of up to $5 million for information leading to the arrest and/or conviction of People’s Republic of China (PRC) national Jian Zhang, a fugitive in this transnational investigation. This case was investigated by Homeland Security Investigations; North Dakota Bureau of Criminal Investigation; U.S. Drug Enforcement Administration; U.S. Postal Inspection Service; Internal Revenue Service – CID; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland Oregon Police Bureau – Drugs and Vice Division; Portland HIDTA Interdiction Task Force; Oregon State Police; and Grand Forks Police Department. The prosecutor for this case was Assistant U.S. Attorney Christopher C. Myers, District of North Dakota. ######


title: Federal Grand Jury Indicts Two Nelson County Residents for Cocaine and Fentanyl Trafficking Conspiracy

component: USAO - Kentucky, Western

body_text: Louisville, KY – A federal grand jury in Louisville returned an indictment on July 11, 2023, charging two Nelson County residents with conspiring to traffic in cocaine and fentanyl. One resident was also charged with possessing with the intent to distribute and distributing cocaine and fentanyl. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Brian Jones of the FBI Louisville Field Office, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Sheriff Ramon Pineiroa of the Nelson County Sheriff’s Office made the announcement. According to the indictment, Neal Scott Stone, 47, and Keely Logsdon, 39, both of Bardstown, Kentucky, were charged with conspiring to possess with the intent to distribute and distributing over 400 grams of fentanyl and 500 grams of cocaine between March 7, 2023, and June 24, 2023. Additionally, Stone was charged with possessing with the intent to distribute and distributing over 500 grams of cocaine and over 40 grams of fentanyl on June 24, 2023. Both Stone and Logsdon recently made their initial court appearances before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. Both Stone and Logsdon remain in federal custody pending trial. If convicted, both defendants face a minimum sentence of 10 years and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system. This case is being investigated by the FBI, the DEA, the Nelson County Sheriff’s Office, and the Greater Hardin County Narcotics Task Force, with assistance from the Louisville Metro Police Department, the Kentucky State Police, and the Jefferson County Sheriff’s Office. Assistant U.S. Attorney Frank Dahl is prosecuting the case. This effort is part of an Organized Crime Drug Enforcement Task Force (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 www.justice.gov/OCDETF. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Chatham County man sentenced to more than 10 years in prison for fentanyl and heroin trafficking

component: USAO - Georgia, Southern

body_text: SAVANNAH, GA: A Chatham County man convicted of murder after his indictment on federal drug trafficking charges has been sentenced to federal prison for fentanyl and heroin trafficking. Dyanta Samuels, 25, of Savannah, was sentenced to 149 months in federal prison after previously pleading guilty to Possession with Intent to Distribute Fentanyl and Heroin, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker ordered the sentence to run consecutively with the life sentence Samuels is serving in state prison, and for Samuels to serve three years of supervised release upon completion of his federal prison term. There is no parole in the federal system. “This investigation took an illegal drug merchant off the streets along with numerous firearms that are dangerous tools of the violent drug trade,” said U.S. Attorney Steinberg. “We commend our law enforcement partners for outstanding work in bringing Samuels and his co-defendants to justice.” As described in court documents and testimony, the Savannah Police Department and a U.S. Marshals Task Force were conducting surveillance at a Savannah apartment complex in April 2021 regarding a suspect in a homicide when they observed activity consistent with drug trafficking. Four individuals left the apartment complex in three vehicles, and subsequent traffic stops and searches of those vehicles yielded large amounts of marijuana and fentanyl, along with cash, multiple firearms, and ammunition. In a search of the apartment, investigators found drug trafficking paraphernalia, quantities of heroin and fentanyl, multiple firearms, and hundreds of rounds of ammunition. Samuels’ plea agreement includes the forfeiture of eight firearms, including semi-automatic pistols and assault-style rifles, along with ammunition and multiple high-capacity magazines. Samuels and three co-defendants were indicted in May 2022 by a U.S. District Court grand jury. While under indictment, Samuels was convicted in state court for the 2020 shooting death of Kareem Samuels in Savannah, and is serving a life sentence in Jenkins Correctional Facility. One co-defendant, Shantanese Anderson , 28, of Savannah, is serving a 37-month sentence after pleading guilty to Conspiracy to Possess with Intent to Distribute Marijuana. Two other defendants facing similar charges – Samuels’ girlfriend, Kya Key , 23, of Savannah, and Ismail Maxwell , 26, of Savannah – await sentencing after pleading guilty to similar charges. “Our partnership with the U.S. Attorney’s Office is key to the Savannah Police Department’s ability to prevent those who choose to bring violence and drugs to our neighborhoods from being able to do so,” said Savannah Police Chief Lenny Gunther. “This is yet another example of how much we can accomplish through collaboration.” The case was investigated by the Savannah Police Department and the U.S. Marshals Service, and prosecuted for the United States by Assistant U.S. Attorneys Bradley R. Thompson and Frank M. Pennington II.


title: Administrator of Scam Telegram Channel Charged with Fraud

body_text: BIRMINGHAM, Ala. – A federal grand jury indicted a Birmingham-area man for his role operating a scam Telegram channel dedicated to the sale of stolen and fraudulent checks, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division. An eleven-count indictment filed in U.S. District Court charges Mekhi Diwone Harris , 24, of Birmingham, Alabama with conspiracy, wire fraud, and bank fraud. Harris was arrested on August 9, 2023, pursuant to a complaint issued by the U.S. District Court for the Northern District of Alabama. The indictment alleges that between October 2022 and August 2023, Harris participated in a scheme to sell stolen or otherwise fraudulent checks on a Telegram channel called “Work Related Slips.” According to court documents, thousands of stolen or fraudulent checks have been posted to the “Work Related Slips” channel since October of last year. The victims include individuals, municipalities, utilities, churches, nursing homes, schools, non-profit groups, and businesses across the country — including hundreds in the Northern District of Alabama. The total value of the checks posted to the "Work Related Slips" channel is more than $15 million. The maximum penalty for conspiracy to commit bank fraud or conspiracy to commit wire fraud affecting a financial institution is 30 years in prison. The maximum penalty for wire fraud is 20 years in prison. The maximum penalty for bank fraud is 30 years in prison. The FBI investigated the case, which is being prosecuted by Assistant U.S. Attorney Edward J. Canter. The U.S. Attorney’s Office for the Southern District of Alabama, the U.S. Postal Service Office of Inspector General, and the U.S. Postal Inspection service all provided significant assistance during the course of the investigation. An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.


title: Defendant Charged in Connection with Federal Escapee is Sentenced

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – An Indictment from earlier this year in the Western District of Missouri Federal Court charging individuals with escaping confinement and other individuals with assisting them, resulted in an incarceration sentence of 16 months for one of those charged, consecutive to a pending State of Missouri case. Trevor Scott Sparks, 33, Kansas City, MO, and Sergio Perez Martinez, 43, Panorama City, CA, were charged in a two-count Indictment with escape from confinement and aiding or assisting each other in escape from confinement. Another individual, John Douglas Baxter, 57, of Blue Springs, MO, was also charged in the Indictment with a single count of aiding or assisting in the escape. As of the drafting of this release, Perez Martinez remains at large, although Sparks was re-arrested December 30 th , 2022. Baxter, who has been in custody pending resolution of his charges since Sparks was captured, was sentenced today for his role in assisting that escape. The Court sentenced him to 16 months in custody, consecutive to any sentence he may receive in a pending state case that resulted from Missouri moving to revoke his parole from a prior state felony conviction. After arrests on federal felony warrants, and because of jury trial convictions and guilty pleas to various felony charges contained within several Western District of Missouri (WDMO) Federal Grand Jury indictments and various orders of WDMO Federal District Court Judge D. Greg Kays, Trevor Scott Sparks and Sergio Perez Martinez were confined in the Cass County, Missouri, Jail on multiple federal felonies. Federal, state, and local law enforcement began investigating the escape of Sparks and Martinez from the Cass County Jail on or about December 5, 2022. On December 6, 2022, the United States Marshals Service was notified by Cass County, Missouri, that Sparks escaped from confinement and was seen leaving the facility at 10:22 p.m. on December 5, 2022. It was later determined that Sparks and Martinez, another inmate in the Cass County facility, escaped through subterfuge and damage to the facility from the Cass County Jail and fled east outside the jail into the surrounding rural community. From there, a co-defendant picked them up in his vehicle and transported them to his apartment in Kansas City, Missouri, where they obtained clothes and food. They were then transported into the Northeast area of the Kansas City metropolitan area. Sparks and his mother, Co-Defendant Dawn Branstietter, were subsequently arrested in this same general area on December 30, 2022. Branstietter’s husband, Defendant Baxter, was also later arrested on the same aiding escape charges. Branstietter and Baxter provided food, clothing, and housing to Sparks while Sparks was a fugitive. Branstietter is scheduled for sentencing Thursday. This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Robert Smith. It is being investigated by the United States Marshal Service, the Federal Bureau of Investigations, the Kansas City Police Department, and the Cass County Sheriff’s Department with other law enforcement agencies also assisting


title: Las Vegas Man Sentenced To 27 Months’ Imprisonment For Wire Fraud Related To Telemedicine Scheme

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Sergey Duman, age 46, of Las Vegas, Nevada, was sentenced yesterday by U.S. District Court Judge Sylvia H. Rambo to 27 months’ imprisonment for wire fraud. The Court also ordered a 3-year term of supervised release to follow the term of imprisonment and over $4.8 million in restitution. According to United States Attorney Gerard M. Karam, Duman previously admitted that he participated in a scheme to defraud private health insurance companies, the United States, and the Commonwealth of Pennsylvania. Duman purchased Cedar Care Pharmacy in Allentown, Pennsylvania, in January 2020. For the next six months, the pharmacy effectively acted as a shell pharmacy for a telemedicine-fraud scheme. During that time, an entity purporting to be a telemedicine company regularly submitted prescriptions to the pharmacy that had been written without the knowledge of the listed patient. The pharmacy then fraudulently submitted private insurance and Medicaid claims for the prescriptions even though the pharmacy never provided the prescribed medications to patients. The case was investigated by the Federal Bureau of Investigation and the Pennsylvania Office of Attorney General. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case. # # #


title: Straw Purchasers Charged With Buying 100+ Guns Trafficked to Mexico

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

body_text: A group of straw purchasers who allegedly bought more than 100 firearms later trafficked to Mexico has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Seven individuals were charged via criminal complaint with conspiracy to make false statements to licensed firearm dealers in connection with the acquisition of firearms. Defendants Mario Lara, 28, Oralia Carrizales, 41, Geovanny Garcia, 31, and Darryl Fox, 29, were arrested last week; defendants Gavino Trujillo, 28, and Guadalupe Corona, 29, were arrested Tuesday morning. One defendant remains at large. “In June, I met with Deputy Attorney General Lisa Monaco and five border state U.S. Attorneys to discuss Operation Southbound, the Justice Department’s signature initiative to disrupt the flow of guns across the U.S. / Mexico border. This case represents our district’s commitment to hold accountable anyone involved in smuggling guns into Mexico,” said U.S. Attorney Leigha Simonton. “All too often, guns trafficked across our southern border fall into the hands of cartel bosses and other bad actors who threaten law enforcement and the people they serve. We will not rest until we dismantle those trafficking networks.” “There is no doubt that the arrest of these seven individuals will lead to a safer Mexico. Their behavior was adding to the bloodshed and carnage that have plagued our neighbors for so long. We have all seen the movies and evening newscasts on the violence. This is how it starts.” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II. “The people involved in the trafficking of weapons live amongst you and me. If you suspect someone of illegally running guns, please contact ATF.” According to court documents, the defendants allegedly purchased guns from federally licensed firearms dealers on behalf of Jose Carlos Rivas-Chiarez, 29, who disassembled the firearms, concealed them inside plastic and towels, and smuggled them to Mexico, either concealed inside tires or through the mail. Mr. Rivas and his girlfriend, Ana Francisco-Sotelo, 28, were previously charged and pleaded guilty in October 2022 to making false statements during the purchase of a firearm. Mr. Rivas also pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. Mr. Rivas and Ms. Domingo were sentenced this spring to a combined 32 years in federal prison. According to court documents, a search of Mr. Rivas’ residence turned up more than 150 empty firearm boxes. Records showed that many of the missing firearms – including FN SCAR rifles, AR-15 style rifles, Glock pistols, and a stolen silencer – had been purchased by the defendants. In an interview following the search of his home, Mr. Rivas admitted to law enforcement that, as a Mexican citizen unlawfully present in the U.S., “I’m not legal, to be honest, to be buying a gun.” He further admitted that he directed multiple people to purchase firearms on his behalf. Confronted with text messages between him and at least one of the defendants discussing the pricing and delivery of “toys,” Mr. Rivas admitted that “toys” was a code word for firearms. Surveillance video recovered from one of the stores revealed that on at least one occasion, Mr. Rivas accompanied a straw purchaser to the gun store to inspect the firearm before the purchase. A complaint is merely an allegation of criminal conduct, not evidence. Mario Lara, Gavino Trujillo, Oralia Carrizales, Geovanny Garcia, Darryl Fox, and Guadalupe Corona are presumed innocent until proven guilty in a court of law. If convicted, they face up to 10 years in federal prison. The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division conducted the investigation with the assistance of Homeland Security Investigation’s Dallas Field Office and the Arlington Police Department. Assistant U.S. Attorney Levi Thomas is prosecuting the case.


title: Previously Convicted Charles County Felon Sentenced to More Than 11 Years in Federal Prison on Firearms and Drug Charges

component: USAO - Maryland

body_text: Greenbelt , Maryland – U.S. District Judge Deborah K. Chasanow sentenced Sean Donnelle Hawkins, age 48, of Marbury, Maryland, yesterday to 138 months in federal prison, followed by five years of supervised release, on charges related to his distribution of cocaine, crack cocaine, and firearms in Charles County, Maryland. During the investigation, Hawkins sold eight firearms to a law enforcement source, including four privately made semi-automatic firearms, known as “ghost guns.” Hawkins must also forfeit and abandon the firearms, ammunition and magazines seized during the investigation. The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Baltimore Field Division; and Charles County Sheriff Troy Berry. As detailed in his guilty plea, Hawkins admitted that on 10 separate occasions from October 2021 to May 2022, he sold cocaine, crack cocaine and/or firearms to law enforcement sources. Between February 18, 2022 and May 24, 2022, Hawkins sold a law enforcement source a total of eight firearms, including four privately made firearms, often referred to as “ghost guns,” and 468 rounds of ammunition. One of the privately made firearms was a semi-automatic pistol and came with a high-capacity magazine capable of receiving 33 rounds of 9mm ammunition and was loaded with 31 rounds of ammunition. Hawkins knew that he had a previous felony conviction and was prohibited from possessing firearms or ammunition. Hawkins also had reason to believe that the law enforcement source to whom he sold the guns could not lawfully possess firearms and intended to use or dispose of the firearms unlawfully. A search warrant was executed at Hawkins’ residence on August 3, 2022, and law enforcement recovered a loaded .38 special caliber revolver; a 9mm semi-automatic pistol; two empty firearm magazines; marijuana; a mixture of powder and crack cocaine; 20 green tablets of a mixture of cocaine and oxycodone; white tablets that were found to be of a mixture of cocaine and oxycodone; and one green tablet of oxycodone from a cooler in the house and two shotguns and more than 1,000 rounds of assorted caliber ammunition, as well as $1,264 in cash from other areas in the residence, which Hawkins intended to use to commit or facilitate the distribution of controlled substances. Hawkins possessed the firearms, ammunition, and magazines recovered in the cooler in furtherance of his drug trafficking. 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. United States Attorney Erek L. Barron commended the ATF and the Charles County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Bijon A. Mostoufi and Timothy F. Hagan, who prosecuted the case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach . # # #


title: Florida Man Pleads Guilty to Orchestrating $1.15 Million Tax Fraud Scheme

component: Tax Division

body_text: A Florida man pleaded guilty today to conspiring to defraud the United States, filing a false tax return and to aiding and assisting the preparation of a false tax return. According to court documents and statements made in court, Rafael Ramos, of Orlando, recruited clients and prepared tax returns on their behalf that falsely claimed banks and other financial institutions had withheld large amounts of taxes from the clients’ income, thereby entitling them to refunds from the IRS. To further the scheme, Ramos and his co-conspirators filed false documents with the IRS, purporting to have been issued by the banks, to support the false withholding information reported on the returns. When the IRS initiated proceedings to collect the fraudulently-issued refunds, Ramos held meetings with his clients and attempted to obstruct the IRS’s efforts by providing them with frivolous correspondence to send to the IRS, instructing clients to falsely inform the IRS that they self-prepared their returns and telling clients to move funds out of their bank accounts to avoid IRS levies. In total, Ramos’s scheme caused a tax loss to the IRS of over $1.15 million. Ramos is scheduled to be sentenced Nov. 30 and faces a maximum penalty of five years in prison for conspiracy and three years in prison for each false return count. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorneys Jeffrey McLellan, Ezra Spiro and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Terry Livanos for the Middle District of Florida are prosecuting the case.


component: USAO - Florida, Middle

body_text: Orlando, FL – A Florida man pleaded guilty today to conspiring to defraud the United States, filing a false tax return and to aiding and assisting the preparation of a false tax return. According to court documents and statements made in court, Rafael Ramos, of Orlando, recruited clients and prepared tax returns on their behalf that falsely claimed banks and other financial institutions had withheld large amounts of taxes from the clients’ income, thereby entitling them to refunds from the IRS. To further the scheme, Ramos and his co-conspirators filed false documents with the IRS, purporting to have been issued by the banks, to support the false withholding information reported on the returns. When the IRS initiated proceedings to collect the fraudulently-issued refunds, Ramos held meetings with his clients and attempted to obstruct the IRS’s efforts by providing them with frivolous correspondence to send to the IRS, instructing clients to falsely inform the IRS that they self-prepared their returns and telling clients to move funds out of their bank accounts to avoid IRS levies. In total, Ramos’s scheme caused a tax loss to the IRS of over $1.15 million. Ramos is scheduled to be sentenced Nov. 30 and faces a maximum penalty of five years in prison for conspiracy and three years in prison for each false return count. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorneys Jeffrey McLellan, Ezra Spiro and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Terry Livanos for the Middle District of Florida are prosecuting the case.


title: Missouri Man Found Guilty of Producing Child Pornography

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – U.S. District Judge John A. Ross on Tuesday found a man from Audrain County, Missouri guilty of one count of producing child pornography and two counts of receiving child pornography. William Dahl, 39, faces at least 15 years in prison when he is sentenced in December. Judge Ross’ findings of fact and conclusions of law says evidence and testimony at a bench trial in May showed that Dahl photographed himself having sex with a 14-year-old girl and then emailing images to others. Dahl also received a video of a 16-year-old and a pornographic image of a 7-year-old. Dahl met the first victim when she was 13 and he was nearly 23. Dahl took pictures of the girl in a Moberly cemetery in 2007 and sent images of his genitals to her, Judge Ross’ order says. He also sent images of her to others. A second victim met Dahl when he was 36 and she was 16. He bought her a cell phone, alcohol and vaping pods and they exchanged nude pictures, the order says. The third victim is a 7-year-old girl. Dahl’s co-defendant, Jennifer Huddleston, now 35, pleaded guilty in May to one count of production of child pornography and one count of possession of child pornography. She admitted taking photographs of herself sexually abusing the sleeping girl and sending them to Dahl. She also admitted possessing child sexual abuse material downloaded from the internet. Huddleston and Dahl were in an on-and-off relationship since 2008. The investigation began in January of 2021, when the 16-year-old victim and her family reported the inappropriate relationship between the teen and Dahl. The girl said she met Dahl through the local Civil Air Patrol. A subsequent investigation by the Missouri State Technical Assistance Team uncovered more victims. Dahl also has pending charges in Audrain County Circuit Court. Huddleston is scheduled to be sentenced October 3. The cases were investigated by the Missouri State Technical Assistance Team and Donya Jackson, an investigator with the U.S. Attorney’s office at the time. Assistant U.S. Attorneys Colleen Lang and Amy Sestric are prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Three Peoria Men Sentenced for Paycheck Protection Program Fraud

component: Department of Justice

body_text: PEORIA, Ill. – Three Peoria, Illinois, men were sentenced on September 5, 2023, by U.S. District Judge James E. Shadid for making false statements related to the federal Paycheck Protection Program (PPP). Two of the three were also held responsible for fraudulently obtaining unemployment insurance benefits from multiple states. The PPP provided federal funds to small businesses that were directly affected by the COVID-19 pandemic to pay up to eight weeks of payroll costs, rent, utilities and mortgage interest. The program was implemented by the Small Business Administration and administered by third-party lenders. The PPP was enacted via the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, an economic bill that passed in March 2020 in response to the economic fallout caused by the pandemic. The three men were indicted in October 2022. Kendall A. Mack, 26, pleaded guilty in May 2023 to one count of making a false statement in April 2021 to obtain a PPP loan. From April to September 2021, Mack fraudulently obtained PPP funds to which he was not entitled by submitting a fraudulent PPP application, as well as a fraudulent PPP loan forgiveness application. He was held responsible for losses to the Small Business Administration and Capital Plus Financial, LLC, in the amount of $39,239.08. Mack was sentenced to three years’ probation and imprisonment for a period of time served. Judge Shadid also ordered Mack to pay restitution in the amount of $39,239.08. Rasheem McCree, 38, pleaded guilty in April 2023 to one count of making a false statement in March 2021 by submitting a false application for PPP funds. He also admitted to fraudulently obtaining unemployment benefits from five states, including the Nevada Department of Employment, Training and Rehabilitation; the Arizona Department of Economic Security; the Pennsylvania Department of Labor and Industry; the New York State Department of Labor; and the Illinois Department of Employment Security. McCree was sentenced to 27 months’ imprisonment, to be followed by three years of supervised release. Judge Shadid also ordered McCree to pay $89,981.34 in restitution to the SBA and the states. Adrian Lamont Morris, 27, pleaded guilty in April 2023 to one count of making a false statement in March 2021 by submitting a false application for PPP funds. In addition to the PPP loan, Morris filed for unemployment benefits from Illinois, Louisiana, and Pennsylvania, for a loss to the SBA and those states of $60,642. Morris was sentenced to 24 months’ imprisonment, to be followed by three years of supervised release. Judge Shadid also ordered Morris to pay $60,642 restitution. On their applications, each of the defendants claimed to be the sole proprietor of a barber shop. However, none of them had a registered barber shop, employees, a payroll, or business-related expenses. None were licensed barbers. In sentencing McCree and Morris, Judge Shadid noted their significant criminal histories. McCree and Morris were ordered to report to the Bureau of Prisons on November 14, 2023. The statutory penalties for false statements under 18 U.S.C. §1001(a)(3) are up to five years’ imprisonment, a possible $250,000 fine, and up to a three-year term of supervised release. The Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation, Springfield Field Office, investigated the case. Criminal Chief Darilynn J. Knauss represented the government in the prosecution.


title: Laguna Man Pleads Guilty to Assault

component: USAO - New Mexico

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Andres Nathaniel Harjo pled guilty to assault. Harjo, 25, of Laguna and an enrolled member of Laguna Pueblo, will remain in custody pending sentencing, which has not been scheduled. According to court documents, on February 15, 2020, Harjo assaulted the victim, Jane Doe, at their shared residence and only stopped when his actions were interrupted by a third individual. At sentencing, Harjo faces up to 10 years in prison. The Bureau of Indian Affairs investigated this case with assistance from the Pueblo of Laguna Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case. # # # 23-206


title: Justice Department and Department of the Navy Announce Voluntary Elective Option for More Efficient Resolution of Camp Lejeune Justice Act Claims

component: Civil Division

body_text: The Justice Department and the Department of the Navy (DON) today announced the finalization and publication of a voluntary process, called the “Elective Option,” to help veterans and others more quickly resolve qualifying claims under the Camp Lejeune Justice Act (CLJA) of 2022. This option supplements other processes currently available under the CLJA, which remain in place. The CLJA is a provision of the Honoring our Promise to Address Comprehensive Toxics Act, which was signed into law on Aug. 10, 2022. The CLJA allows those who file claims and lawsuits to potentially recover for injuries caused by exposure to contaminated water at the Marine Corps Base Camp Lejeune from mid-1953 through 1987. Established jointly by the Justice Department and DON, the new Elective Option provides a framework for the DON to resolve certain CLJA claims quickly, equitably and transparently. In order to be eligible for the Elective Option, a claimant must first submit an administrative claim to the DON. To date, more than 93,000 CLJA claims have been filed with the DON. The Elective Option allows the DON to focus its review on a few key aspects of a CLJA claim, such as the type of injury alleged and the amount of time a claimant worked or resided at Camp Lejeune. Narrowing the scope of the review enables faster validation and, ultimately, extension of settlement offers. The Elective Option provides similar settlement offers to claimants with similar exposures and injuries with similar evidence of causation. “The Elective Option is a critical step in bringing relief to qualifying claimants impacted by the contaminated water at Camp Lejeune, who will now have an avenue for receiving quick and early resolution of claims under the Camp Lejeune Justice Act,” said Associate Attorney General Vanita Gupta. “We are grateful for the continued partnership of the Department of the Navy and federal agencies in developing and administering this framework.” “The Elective Option presented today should be of great interest to eligible Americans who seek a streamlined process to resolve their claims,” said Under Secretary of the Navy Erik Raven. “We recognize this takes a whole-of-government response, and along with DOD and DOJ, we are linked with Veterans Affairs and other federal agencies to support a fair and streamlined process. We are committed to ensuring that every valid Camp Lejeune claim is resolved fairly and as expeditiously as possible.” Within the framework, the DON can make settlement offers to qualifying claimants with diseases that the Agency for Toxic Substances and Disease Registry (ATSDR) has determined are linked to the chemicals found in the water at Camp Lejeune. Award amounts are tiered, largely based on the ATSDR’s classification of the strength of the evidence linking the contamination with a particular disease and the amount of time the individual spent at Camp Lejeune. Tier 1 Diagnoses: Claimants with diseases for which the ATSDR has substantiated evidence of causation – kidney cancer, liver cancer, non-Hodgkin’s lymphoma, leukemia and bladder cancer – would receive settlement offers of $450,000, $300,000 or $150,000, depending on whether the claimant was exposed to Camp Lejeune water for over five years, between one and five years or between 30 and 364 days, respectively. Tier 2 Diagnoses: Claimants with diseases to which the ATSDR has linked possible evidence of causation – multiple myeloma, Parkinson’s disease, kidney disease (end stage renal disease), systemic sclerosis/systemic scleroderma – would receive settlement offers of $400,000, $250,000, or $100,000, depending on whether the claimant was exposed to Camp Lejeune water for over five years, between one and five years or between 30 and 364 days, respectively. Claims involving death would receive an additional $100,000. The Elective Option supplements other mechanisms for resolving claims currently available through the normal administrative claims or litigation processes. Claimants not eligible for the Elective Option may await finalization of their administrative claim or pursue litigation and engage in any broader settlement discussions occurring through court proceedings in the Eastern District of North Carolina. The Justice Department will screen already-filed lawsuits and will extend settlement offers in qualifying cases that are similar to awards under the Elective Option. Those interested in learning more about the Elective Option should visit www.navy.mil/clja. Individuals who think they qualify for relief under the CLJA can follow the instructions available on that site to submit a claim and provide requisite supporting documentation. There is no requirement to retain a lawyer to file a claim or subsequently pursue an expedited resolution. Claims that have already been filed with DON do not need to be refiled. Payments under the Elective Option are not offset by the Department of Veterans Affairs (VA) disability benefits or VA medical care, and they do not impact ongoing treatment and support provided by the VA. More information is available at www.navy.mil/clja. View the Public Elective Option Guidance here.


title: Man Charged with March 2023 Armed Robbery

component: USAO - Massachusetts

body_text: BOSTON – A local man has been charged in federal court in Boston in connection with the March 20, 2023 armed robbery of the JP Wireless store in Jamaica Plain, Mass. Royal Benjamin, 63, was charged with one count of Hobbs Act robbery. Benjamin currently is in state custody on related charges and will appear in federal court in Boston at a later date. According to charging documents, on the evening of March 20, 2023, a Black male approximately six feet in height, wearing a black ski mask, grey hooded sweatshirt, light blue jeans and black-and-white sneakers entered the JP Wireless Store in Jamaica Plain brandishing a black revolver. The suspect allegedly removed the cash register drawer with his bare hands, but dropped the drawer on the floor before fleeing the scene. It is alleged that Benjamin was identified as a positive match for fingerprints retrieved from the cash register drawer. The charge of Hobbs Act robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Massachusetts Bay Transit Authority Police Department; the Suffolk County District Attorney’s Office; and the Boston and Cambridge Police Departments. Assistant U.S. Attorney Meghan C. Cleary of the Major Crimes Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Farmington Man Charged with Arson

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Ulrick Bruce Canyon appeared in federal court on a complaint charging him with arson of a dwelling within the maritime and territorial jurisdiction of the United States. Canyon, 40, of Farmington and an enrolled member of the Navajo Nation, will remain in custody pending a preliminary and detention hearing scheduled for September 5, 2023. According to the criminal complaint, on August 28, 2023, officers from the Navajo Nation Police Department responded to a call reporting that a residence located on Indian Service Route 5081 was on fire. As a Navajo Nation Criminal Investigator was responding to the scene, he observed Canyon pushing a wheel barrel full of clothes down the same road used to access the burning residence. When the Criminal Investigator questioned Canyon, he admitted to spraying lighter fluid around the inside of the residence and igniting the lighter fluid with a match. Canyon grabbed his own clothes, threw them into a wheel barrel, and left the residence after throwing two 20-pound propane bottles into the fire. The Criminal Investigator interviewed the homes residents, John and Jane Doe, who advised that Canyon resided at the home with them. According to John and Jane Doe, Canyon’s behavior over the last several days had become erratic and violent due to drinking and drug use. The Does further stated that they had left the residence out of fear and had been staying at a hotel in Farmington when they received the call that their house was on fire. A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted on the current charge, Canyon faces up to life in prison. The Farmington Resident Agency of the FBI Albuquerque Field Office with assistance from the Navajo Nation Police Department and the Navajo Department of Criminal Investigations investigated this case. Assistant U.S. Attorney Matthew J. McGinley is prosecuting the case. # # # 23-207


title: Church Rock Man Pleads Guilty to Sexual Abuse

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Lathem Eskeets pleaded guilty to one count each of sexual abuse of a minor and abusive sexual contact. Eskeets, 30, of Church Rock, will remain in custody pending sentencing, which has not been scheduled. According to court documents, between August 2012 and August 2013, Eskeets engaged in a sexual act with a minor victim who was older than 12 at the time, but younger than 16. During the same time period, Eskeets made sexual contact with a minor victim who was younger than 12 at the time. Upon his release from prison, Eskeets must register as a sex offender. The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Zachary Clark Jones is prosecuting the case. # # # 23-208


title: Bosque Farms Man Sentenced to 38 Months in Jail for Firearms Offense

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Joe Alex Abeita III was sentenced to 38 months in prison. Abeita, 33, of Bosque Farms, pled guilty to being a felon in possession of a firearm and ammunition on March 21, 2023. According to court documents, on March 3, 2022, tribal police officers attempted to arrest Abeita for an outstanding federal arrest warrant for being a felon in possession of a firearm. Officers initiated the arrest outside the Isleta Tribal Court building after he met with his probation officer. Abeita initially complied before changing his mind and attempting to flee. When officers apprehended him, Abeita continued to resist and moved his hand near his front waistband, which led officers to believe he was reaching for a weapon. When they had successfully secured him, officers asked Abeita if he had any weapons on his person and he admitted that he had a firearm on his leg. Officers determined that the firearm was loaded with a round chambered. This was the second time Abeita possessed a firearm within a span of six months. Abeita was previously convicted of use of a firearm during and in relation to a crime of violence in 2012. As a previously convicted felon, Abeita cannot legally possess firearms or ammunition. Upon his release from prison, Abeita will be subject to 3 years of supervised release. The FBI Albuquerque Field Office investigated this case with assistance from the Isleta Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case. # # # 23-209


title: Clovis Man Sentenced to 2 Years Probation for Misdemeanor Wildlife Trafficking Charge

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Victoria Owens, Special Agent in Charge of the United States Fish and Wildlife Service, Region 2, announced today that Jared Piepkorn, 47, of Clovis, New Mexico pleaded guilty and was sentenced to two years’ probation for Sale of Wildlife Taken in Violation of State Law, a violation of the Lacey Act. The United States charged Piepkorn with one misdemeanor violation of the Lacey Act occurring in January 2021 after he agreed to also plead guilty in State District Court to several wildlife related charges occurring in January 2022. The United States alleged he engaged in the sale of wildlife by acting as an unregistered guide or outfitter in 2021 and guiding an out of state hunter who killed an Oryx on the White Sands Missile Range without a proper permit. In addition to serving two years’ probation, Piepkorn was fined $2,000 and will be required to complete 50 hours of community Service. The fine will be used to further wildlife conservation efforts. The United States Fish and Wildlife Service investigated this case jointly with the New Mexico Department of Game and Fish. Assistant United States Attorney Letitia Carroll Simms prosecuted the case. # # # 23-210


title: Bronx Man Sentenced to Prison for Assisting Cousin’s Drug Trafficking Enterprise

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that JUAN MARTINEZ, JR., 22, of the Bronx, New York, was sentenced yesterday by U.S. District Judge Kari A. Dooley in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for a narcotics offense. According to court documents and statements made in court, in September 2020, law enforcement received court-authorization to install a GPS tracking device on a Volvo XC90 belonging to Martinez’s cousin, Joseph Matos, which investigators had learned contained a “trap” that was used to conceal and transport narcotics. Matos lived in both Bridgeport and at a residence on Martha Place in the Bronx, New York. Investigators tracked the Volvo for several months as it traveled between southern Connecticut and New York, on the west coast of the U.S., and to Tijuana, Mexico. In March 2021, the Volvo was brought back to Connecticut via a car carrier from California. On March 22, 2021, investigators surveilled Matos as he traveled from his Bronx residence to a location in Trumbull where he picked up the vehicle. They stopped the vehicle and arrested Matos after a search revealed approximately two kilograms of cocaine hidden in the trap. Martinez, who assisted Matos’s drug operation, was arrested that same day at the Martha Place residence. A search of the residence revealed more than 500 grams of cocaine, approximately 50 pounds of marijuana, narcotics packing materials, more than $143,000 in cash, eight firearms, silencers, high-capacity magazines, and ammunition. At the time of his arrest, Martinez was in the process of packing the contraband to remove it after learning that Matos had been stopped by police in Connecticut. On April 4, 2023, Martinez pleaded guilty to being an accessory after the fact to Matos’ possession with intent to distribute narcotics. Matos pleaded guilty and, on July 26, 2023, he was sentenced to 48 months of imprisonment. This investigation was conducted by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, which includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Danbury, Milford, Norwalk, Stamford, and Stratford Police Departments. The case was prosecuted by Assistant U.S. Attorney Karen L. Peck.


title: Shiprock Man Sentenced to 3 Years in Prison for Involuntary Manslaughter

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Keanu Marcel Upshaw was sentenced to 37 months in prison. Upshaw, 22, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty to involuntary manslaughter on April 6, 2023. According to court documents, on Sept. 16, 2021, following a night of drinking, Upshaw lost control of the vehicle he was driving as he was attempting to take another drink of alcohol, causing it to crash and ejecting both Upshaw and his passenger from the vehicle. Upshaw’s passenger died from their injuries as a result of the crash. A blood draw taken about two hours after the accident showed that Upshaw’s blood alcohol concentration was .18, which is more than twice the legal limit in New Mexico. Accident reconstruction showed that Upshaw was going somewhere between 69 mph to 80 mph in a 55 mph zone when he lost control of the vehicle. Upon his release from prison, Upshaw will be subject to 3 years of supervised release. The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Navajo Department of Criminal Investigations investigated this case. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case. # # # 23-211


title: Burke County man sentenced to more than 16 years in prison for coercing a child into producing child pornography

body_text: AUGUSTA, GA: A Burke County man has been sentenced to federal prison after admitting he coerced a child to produce sexually explicit images. Keyshawn Omar Cooper , 21, of Waynesboro, Ga., was sentenced to 200 months in prison after previously pleading guilty to Production of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Cooper to pay $3,000 in restitution, and to serve 15 years of supervised release and register as a sex offender after completion of his prison term. There is no parole in the federal system. “This predatory crime represents a nightmare scenario for parents whose children connect with others to play games over the internet,” said U.S. Attorney Steinberg. “Thanks to the vigilance of one of those parents and diligent law enforcement partners, Keyshawn Cooper is no longer a danger to children.” As described in court, in May 9, 2021, Cooper communicated via an internet application with an 11-year-old child in Missouri, and persuaded the victim to engage in sexually explicit conduct for the purpose of creating visual depictions that the victim then sent to Cooper. The child’s mother discovered the activity and reported it to police in Cape Girardeau, Mo., who enlisted the assistance of the FBI in identifying and locating Cooper. The investigation determined that the child and Cooper met online while playing the “Grand Theft Auto” video game, and Cooper pretended to be a young girl to persuade the child to send sexually explicit photos. Agents found those images, along with other sexually explicit images of children, saved on a phone seized from Cooper. “The internet is a very important and useful resource, but unfortunately can also be used for illegal activity as criminals like Cooper seek to prey on the most vulnerable of our population,” said Brian Ozden, Assistant Special Agent in Charge of FBI Atlanta. “Let this be a reminder to parents and caregivers, people can pretend to be anyone online, and you need to remain vigilant with monitoring your child’s online gaming activity and educating them about the risks of communicating with strangers.” The case was investigated by the Cape Girardeau, Mo., Police Department and the FBI, and prosecuted for the United States by First Assistant U.S. Attorney Tara M. Lyons. Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/ .


title: Fruitland Man Sentenced to 8 Years in Prison for Sexual Abuse

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Derek Lorin Blackhorse was sentenced to 97 months in prison. Blackhorse, 34, of Fruitland and an enrolled member of the Navajo Nation, pleaded guilty to attempted sexual abuse on April 27, 2023. According to court documents, on May 28, 2021, while intoxicated, Blackhorse attempted to engage in sexual intercourse with the victim, Jane Doe, while she was sleeping in her bed at her home. Upon his release from prison, Blackhorse must register as a sex offender and will be subject to 20 years on supervised release. The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ . # # # 23-212


title: Blackfoot Man Sentenced to 24 Years in Federal Prison Following Convictions for Distribution and Possession of Child Pornography

component: Criminal - Child Exploitation and Obscenity Section

body_text: POCATELLO – Joseph Hornof, 41, of Blackfoot, was sentenced to 24 years in federal prison for two counts of distribution of child pornography and one count of possession of child pornography, U.S. Attorney Josh Hurwit announced today. Hornof was convicted of all three charges by a federal jury sitting in Pocatello after a three-day trial in January 2023. Hornof faced a 15-year mandatory minimum sentence due to a prior sex offense against a child from 2009 in Bannock County. According to testimony and evidence presented at trial, Hornof, used the Kik messenger application to communicate with an undercover officer in North Carolina. Hornof shared videos and images of child pornography with the officer. Hornof then directed the officer to join a social media group called “pedophilia” that Hornof administered. In that group, Hornof distributed 24 videos of child pornography to other members of the group. Law enforcement later served a search warrant at Hornof’s residence in Blackfoot. After seizing his laptop and cellphone, officers discovered additional images of child pornography on the devices. U.S. Chief District Judge David C. Nye also sentenced Hornof to 15 years of supervised release, which will commence upon completion of his prison sentence. Hornof was ordered to pay $8,000 in restitution to the victims in the images that he possessed and distributed. “While it is comforting to know that this defendant has been removed from our community, our work to protect Idaho’s children continues,” said U.S. Attorney Hurwit. “Along with our law enforcement partners, we will spare no effort in tracking down and holding accountable anyone who peddles child pornography in Idaho.” “There is constant work involved in keeping children safe from predators whether online or in person, and this 24 year sentence helps to do just that,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI highly values our partnerships with the ICAC taskforce as well as the law enforcement agencies involved in making this arrest, as investigations of this type are only successful with our collective expertise.” U.S. Attorney Hurwit commended the cooperative efforts of the Idaho Falls Police Department, Idaho ICAC Task Force, Boone North Carolina Police Department, and Homeland Security Investigations (HSI), which led to the charges. Assistant U.S. Attorneys Erin Blackadar and John Shirts prosecuted this case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . ###


title: Louisiana Man Pleads Guilty to Dogfighting Conspiracy

component: Energy and Natural Resources Division

body_text: David Guidry III, of Independence, Louisiana, was sentenced today to 12 months and one day in prison followed by three years supervised release, with the special condition that Guidry complete 30 hours of community service, for possession of animals in an animal fighting venture. U.S. District Judge Jane Triche Milazzo for the Eastern District of Louisiana imposed the sentence. According to court documents, federal law enforcement – through an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation – initially discovered Guidry’s involvement in the dogfighting ring through court-authorized wiretaps investigating narcotics trafficking in the Eastern and Middle Districts of Louisiana by other individuals. In the summer of 2017, law enforcement discovered Guidry hosted at least two dogfights at his residence in Independence, at which narcotics traffickers and fellow dogfighters fought dogs and gambled on the fights. In October 2017, federal law enforcement executed a search warrant on Guidry’s residence and found a dogfighting pit surrounded by discarded beverage containers, seven pitbulls restrained using heave chains, a device to pry open the jaws of a dog involved in a dogfight and veterinary equipment. Federal law enforcement seized the dogs and transported them to a facility in North Carolina for medical care and rehabilitation. To date, six other defendants have been convicted for their participation in the interstate dogfighting ring. Five of the defendants have already been sentenced for their dogfighting convictions: Eric “EZ” Williams, of Baton Rouge, Louisiana: 60 months in prison; Corey Brown, of Baton Rouge, Louisiana: 50 months in prison; Clay Turner, of Loranger, Louisiana: 36 months in prison; Dangelo Dontae Cornish, of Greensburg, Louisiana: 16 months in prison; and Aquintas Kantrell Singleton, of Baton Rouge, Louisiana: 12 months and one day months in prison. Antonio Damon Atkins, of Baton Rouge, Louisiana, pleaded guilty to dogfighting charges in July and is awaiting sentencing. Assistant Attorney General Todd Kim of the Justice Department's Environment and Natural Resources Division (ENRD) and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement. The FBI and U.S. Department of Agriculture investigated the case. Trial Attorney Matthew D. Evans of ENRD's Environmental Crimes Section and Assistant U.S. Attorney Brittany Reed for the Eastern District of Louisiana are prosecuting the case.


title: Justice Department Files Sexual Harassment Lawsuit Against Ohio Landlord

component: Civil Rights Division

body_text: The Justice Department announced today that it has filed a lawsuit against Joseph Pedaline, an owner and manager of residential rental properties, in Youngstown, Ohio, for engaging in sexual harassment in violation of the Fair Housing Act. The lawsuit, filed in the U.S. District Court for the Northern District of Ohio, alleges that Joseph Pedaline sexually harassed female tenants at properties that he owned or managed in Youngstown since at least 2009. According to the complaint, Pedaline subjected tenants to repeated and unwelcome sexual comments, touched them without their consent, entered their homes without permission and offered to overlook late rent payments, waive rent or perform repairs in exchange for sexual contact. The lawsuit also alleges that Pedaline initiated evictions or threatened to evict tenants who refused his sexual advances. “No tenant should have to endure sexual propositions, sexual comments or unwelcome physical contact from their landlord,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Sexual harassment in housing is wrong, immoral and illegal. The Justice Department will continue to hold landlords accountable when they violate federal civil rights laws.” “Too often tenants with limited housing options are preyed upon by landlords, maintenance staff and others who have control over where they live,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “This lawsuit sends a message that the U.S. Attorney’s Office will not tolerate the exploitation of our vulnerable community members.” The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, a civil penalty to vindicate the public interest and a court order barring future discrimination. The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Joseph Pedaline or YLP LLC, or who have other information that may be relevant to this case, may contact the Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, press 2 for sexual harassment and then press 01 for United States v. Joseph Pedaline to leave a message. Individuals may also send an email to Youngstown.Community@usdoj.gov or submit a report online . Reports also may be made by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online . The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The department’s initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 36 lawsuits alleging sexual harassment in housing and recovered over $10.8 million for victims of such harassment. Pedaline Complaint


title: Essex County Man Admits Conspiring to Commit Mortgage Fraud

component: USAO - New Jersey

body_text: NEWARK, N.J. – An Essex County man today admitted that he conspired with others to commit mortgage fraud, U.S. Attorney Philip R. Sellinger announced. Cabral Simpson, 46, of Orange, New Jersey, pleaded guilty by before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiring to commit wire fraud. According to documents filed in the case and statements made in court: Simpson, a real estate investor, and his conspirators engaged in mortgage fraud by creating fake bank statements and fake employee verification records for buyers of properties and transferring money into the buyers’ bank accounts for payment of the deposit for a property. Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers. They also induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in losses. The charge of conspiracy to commit wire fraud to which Simpson pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Simpson or twice the gross loss suffered by the victims. Sentencing is scheduled for Jan. 10, 2024, U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Christina D. Scaringi in Newark, with the investigation leading to today’s guilty plea. The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark. simpson.indictment.pdf


title: Lisbon, ND, Man Sentenced to 40 Years in Federal Prison for Sexually Exploiting a Minor and Distribution of Child Pornography

component: USAO - North Dakota

body_text: FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that Craig Gregor , age 29 of Lisbon, ND, appeared before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, and was sentenced to 40 years in federal prison, followed by lifetime supervised release for the charges of Sexual Exploitation of minors, distribution of materials containing child pornography, and possession of materials containing child pornography. Investigation revealed that Gregor repeatedly filmed himself sexually abusing a 6-year-old child and later shared the videos with others using the internet. During a search of the Gregor’s electronic devices, law enforcement found thousands of images and videos of child pornography. “Homeland Security Investigations (HSI) St. Paul special agents work tirelessly to combat child predators like Gregor,” said Jamie Holt, HSI St. Paul Special Agent in Charge. “We will continue to fight against the exploitation of children and support victims by providing critical resources and services. Well done to the special agents and law enforcement community partners for bringing Gregor to justice for his reprehensible crimes.” “This four-decade sentence is more than justified considering the defendant’s breathtakingly abhorrent crimes,” Schneider said. “Keeping children safe is a priority of the highest order for the United Sates Attorney’s Office. I congratulate our federal and state law enforcement partners for their successful efforts to ensure this individual faced justice.” This case was investigated by Homeland Security Investigations and North Dakota Bureau of Criminal Investigation, and prosecuted by Assistant U.S. Attorney Richard Lee, District of North Dakota. ######


title: Former Massachusetts Resident Sentenced to Federal Prison for Methamphetamine Trafficking in Rhode Island

body_text: PROVIDENCE, RI – A former Pepperell, MA, man arrested during an FBI Safe Streets Task Force investigation that resulted in the seizure of more than 461 grams of pure crystal methamphetamine was sentenced today to four years in federal prison, announced United States Attorney Zachary A. Cunha. Peter Walkovich, 38, was arrested in May 2022, shortly after he drove away from a Cranston, RI, residence that was under surveillance by members of the task force. Law enforcement discovered 461.23 grams of 100% pure methamphetamine and various other packaging materials stashed inside three backpacks located inside the vehicle. Walkovich, who was indicted by a federal grand jury, pleaded guilty on March 7, 2023, to a charge of conspiracy to distribute and possess with intent to distribute methamphetamine, and to a charge of possession with intent to distribute methamphetamine. He was sentenced today by U.S. District Court Judge Mary S. McElroy to forty-eight months of incarceration in federal prison to be followed by three years of federal supervised release. The case was prosecuted by Assistant United States Attorneys Paul F. Daly, Jr., and Peter I. Roklan. United States Attorney Cunha thanks the Cranston and Central Falls Police Departments and the DEA for their assistance in the investigation of this matter. ###


title: La Oficina de Envigado Member Sentenced to Five Years in Prison for Role in Drug Trafficking Conspiracy Tied to Medellín Cartel

body_text: BOSTON – A Colombian man was sentenced today in federal court in Boston for his role in a drug trafficking conspiracy connected to organized crime in the Republic of Colombia. Mario Zapata Velez, 41, of Medellín, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and three years of supervised release. In April 2023, Zapata pleaded guilty to one count of money laundering conspiracy, one count of extortion conspiracy, two counts of interstate and foreign travel or transportation in aid of racketeering, one count of use of extortionate means to collect and attempt to collect an extension of credit and one count of conspiracy to possess with intent to distribute cocaine. Zapata Velez was indicted by a federal grand jury in May 2020 along with co-conspirators Fabio de Jesus Yepes Sanchez, Miguel Colindres and Juan Pablo Ariasgil. Zapata Velez and Yepes Sanchez were members of La Oficina de Envigado (La Oficina), a criminal organization based in Medellín, Colombia. La Oficina originated in the 1980s when its members provided enforcement and collection services for the Medellín Cartel, including deceased Medellín Cartel leader Pablo Escobar. Today, La Oficina is involved in international narcotics trafficking, drug debt collection, money laundering, extortion and murder for hire. Zapata Velez and Yepes Sanchez conspired to use threats to extort approximately $750,000 in drug debt from two cocaine traffickers based in Massachusetts. Zapata Velez and Yepes Sanchez also conspired with Colindres and Pablo Ariasgil to obtain five kilograms of cocaine from the Massachusetts traffickers, sell those kilograms, and then repatriate the drug proceeds to Colombia, in partial satisfaction of the outstanding drug debt. In May 2022, Ariasgil was sentenced to four years in prison and four years of supervised release after previously pleading guilty to his role in the cocaine conspiracy. On April 24, 2023, Colindres was sentenced to 51 months in prison and three years of supervised release after previously pleading guilty to his role in the cocaine conspiracy. On June 27, 2023, Yepes Sanchez pleaded guilty to his role in the cocaine conspiracy, and is scheduled to be sentenced on Oct. 5, 2023. Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Criminal Division’s Office of International Affairs of the Justice Department; the Internal Revenue Service’s Criminal Investigations in Boston; and the Government of Colombia. Assistant U.S. Attorneys Lauren A. Graber and Jared C. Dolan of the Criminal Division 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.


title: L.A. Man Pleads Guilty to Robbery Charge and Admits to Crime Spree in Which He Robbed 8 Businesses and Carjacked One Victim

component: USAO - California, Central

body_text: LOS ANGELES – A Los Angeles man pleaded guilty today to a federal criminal charge and admitted in court to committing a carjacking and eight armed robberies of gas stations and convenience stores in Los Angeles County in April. Namir Malik Ali Greene, 23, pleaded guilty to one count of Hobbs Act robbery. According to his plea agreement, on the morning of April 4, Greene robbed a gas station in Marina del Rey. Greene made a purchase and remained inside of the store until all other customers left the business. After all the customers inside of the business left, Greene placed a brown paper bag on the counter and told the clerk, “Put everything in there.” Greene pointed what appeared to be a black semi-automatic handgun, but what in fact was a BB gun, at the clerk while demanding the money. In fear, the clerk emptied the cash register and placed $700 into the brown paper bag. Greene then fled the store. In his plea agreement, Greene admitted to committing seven additional armed robberies from April 4 to April 8 of gas stations and convenience stores in Long Beach, Whittier, South Los Angeles, Pomona, and Culver City. Greene further admitted to the April 15 carjacking the owner of a 2010 Honda Accord while armed with a BB gun. He has been in federal custody since April 18. United States District Judge Sherilyn Peace Garnett scheduled a November 29 sentencing hearing, at which time Greene will face a statutory maximum sentence of 20 years in federal prison. The Bureau of Alcohol, Tobacco, Firearms and Explosives’ Orange County Violent Crime Task Force (OCVCTF) investigated this matter, with assistance from the Los Angeles Police Department’s Robbery Homicide Division and the Ontario Police Department. The OCVCTF is comprised of federal and local law enforcement agencies, including, but not limited to, the ATF, the Brea Police Department, the Santa Ana Police Department, the Orange County District Attorney’s Office, and the Fullerton Police Department. Assistant United States Attorneys Jeffrey M. Chemerinsky and Jena A. MacCabe of the Violent and Organized Crime Section are prosecuting this case.