title: Texas Petrochemical Company Pleads Guilty to Clean Air Act Violation and Fined More than $30 Million in Criminal Fines and Civil Penalties Related to Explosions at Its Facility in Port Neches

body_text: The Justice Department and Environmental Protection Agency (EPA) today announced the filing of a felony criminal charge and related civil complaint and consent decree under the Clean Air Act (CAA) against TPC Group LLC, a Texas petrochemical company. TPC Group also entered a plea of guilty today to a one-count information charging the company with a violation of the Clean Air Act before U.S. Magistrate Judge Zack Hawthorn for the Eastern District of Texas. The filings address explosions that caused injuries, evacuations and significant air pollution. The company has agreed to pay over $30 million in criminal fines and civil penalties and spend approximately $80 million to improve its risk management program and improve safety issues at TPC Group’s Port Neches and Houston facilities. According to information provided in court, on Nov. 27, 2019, two explosions at TPC Group’s Port Neches facility prompted evacuations of thousands of residents from the City of Port Neches and surrounding areas, released more than 11 million pounds of extremely hazardous substances and caused more than $130 million in offsite property damage and other impacts to human health and the environment. Four employees and one contractor suffered injuries including concussions, burns, perforated eardrums, tinnitus and cracked teeth. “Port Neches residents will always remember the day before Thanksgiving 2019,” said Acting Associate Attorney General Benjamin C. Mizer. “That day, powerful explosions at the TPC Group’s facility caused evacuations, injuries, air pollution, and more than $130 million in damage. This entirely preventable accident was the result of the company’s failure to take the necessary precautions to control a hazardous chemical even though it was well aware of the serious risks. Today’s criminal plea and settlement send a clear message that safety measures are not optional and that we will hold violators accountable.” “When a disaster happens like at Port Neches, public safety is paramount,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “TPC Group’s knowing failure to comply with the chemical accident prevention provisions of the Clean Air Act at its Port Neches and Houston facilities placed its workers, neighbors and the environment in danger. Community members have expressed concerns about potential explosions happening at TPC Group’s Houston facility, like what happened in 2019 at Port Neches. Importantly, today’s criminal plea and civil settlement includes safety requirements that will help prevent future incidents.” “TPC recklessly risked the lives of thousands of Port Neches residents and illegally released millions of gallons of extremely hazardous substances into the environment,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s criminal and civil settlements hold TPC accountable for endangering the Port Neches community and require the company to invest approximately $80 million to improve safety at TPC Group facilities. These settlements highlight the strong partnership between EPA’s criminal and civil enforcement programs and demonstrate EPA’s emphasis on a more strategic and collaborative approach to enforcement and compliance assurance.” “Protecting our environment and the safety of the citizens of Southeast Texas will always be a priority of our office,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “The community of Port Neches and their neighbors will never forget the horror of being awakened in the middle of the night – hours before Thanksgiving – by the frightening sounds of the TPC plant explosion at their doorsteps. TPC violated the law when it ignored its own safety protocols, which led to a disastrous explosion with catastrophic consequences that directly endangered the lives of TPC workers and the surrounding community. Today’s guilty plea shows that businesses that choose to place profits over safeguards and legal compliance will face serious consequences.” “The people of Port Neches had their lives disrupted because of a major disaster in their neighborhood. TPC must uphold the accident-prevention standards in the Clean Air Act to ensure families and workers are not harmed,” said EPA Regional Administrator Dr. Earthea Nance. “And when companies do not comply with these important safety regulations, EPA and our federal partners will continue to hold them accountable, in this case by requiring TPC to pay $80 million to reduce health risks at its facility and $12.1 million in civil penalties so communities like Port Neches will be protected from harm in the future.” TPC Group’s facility produced the hazardous chemical Butadiene, which is used in the production of tires, latexes and plastics. Butadiene can form a “popcorn polymer,” which can grow at an accelerating rate and cause catastrophic events, including explosions and fires. The company was aware that this polymer was forming in some of its production lines, and the risks it posed, but failed to take necessary measures to prevent the explosion. An initial explosion occurred at the facility’s South Unit. A secondary explosion followed, and a series of fires erupted at the facility which blew contaminants into the air. As a result of the explosions, mandatory evacuations were ordered for residents within a four-mile radius of the facility, voluntary orders to shelter in place were issued for residents in the surrounding area and local schools were closed for multiple days to allow buildings to be cleaned, repaired and inspected. The company has agreed to pay $18 million in criminal fines. The plea agreement also includes a one-year term of probation and publishing of a public apology. The $12.1 million in civil penalty payments will be made through bankruptcy proceedings. TPC Group will also spend approximately $80 million to improve its risk management program and improve safety issues at both facilities. TPC Group has been criminally charged and pleaded guilty to knowingly failing to implement its own written operating procedures, including monthly flushing of production lines, that would have prevented the explosion. Clean Air Act regulations require planning to prevent accidental releases of hazardous chemicals and makes implementation of those plans mandatory. The civil complaint includes 27 claims and counts – some of which included numerous violations – against TPC Group for violations of the CAA at its Port Neches facility, including numerous violations that led to the 2019 explosions. The Port Neches facility is now used for storage purposes only. The civil complaint also includes 26 claims and counts against TPC Group for CAA violations at the company’s Houston facility, including failing to promptly take corrective actions for hundreds of pieces of process equipment and failing to address similar conditions that led to the Port Neches explosions. Under the proposed civil consent decree, TPC Group is required to update safety information for equipment at its Port Neches and Houston facilities to ensure that they are designed, maintained, inspected and operated in a safe manner. TPC Group must overhaul its process hazard analysis program to ensure prompt completion of all corrective actions and remedial measures to mitigate hazards at the facilities. TPC Group will also update operating procedures and training for its workers and contractors. TPC Group has agreed to audit and revise their emergency shutdown procedures and implement key performance indicators. The company will now provide incident investigations to EPA and release incident report information to the public on a publicly available website. The consent decree requires TPC Group to conduct an audit of the relief system design at the Houston facility to ensure the system can handle all appropriate scenarios. TPC Group will also install and continually use air monitors at the fence line of each facility and in the neighboring communities. Data from the air monitors will be available on TPC Group’s website. TPC Group agreed to conduct an inherently safer technology review to identify safer technology alternatives that minimize or eliminate the potential for accidental chemical releases. TPC Group is required to host community meetings to inform the community about risks associated with its facilities, share evacuation routes and share information about how to properly shelter in place. Under section 112(r) of the CAA, facilities like TPC Group’s in Port Neches and Houston must identify hazards, design and maintain a safe facility, minimize the consequences of accidental releases that do occur and comply with regulatory prevention measures. Failing to comply with these requirements increases the risk of accidents and threatens surrounding communities that are commonly overburdened with pollution. EPA investigated this matter and received extensive cooperation from the Occupational Safety and Health Administration (OSHA). On the date of the explosion, a Unified Command was established that included Jefferson County Judge Jeff Branick, the Jefferson County Office of Emergency Management, the EPA, the Texas Commission on Environmental Quality and TPC Group. If you know of an unsafe industrial situation or an environmental violation, report it here: echo.epa.gov/report-environmental-violations . Attorneys from the Justice Department’s Environment and Natural Resources Division (ENRD), Environmental Enforcement Section are handling the civil case. Attorneys from ENRD’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of Texas are jointly prosecuting the criminal case. Additional information about the explosion can be found on the Justice Department’s website: www.justice.gov/enrd/case/tpc-group-llc-investigation-port-neches-explosion . The proposed consent decree was lodged in the U.S. District Court for the Eastern District of Texas and is subject to a 30-day public comment period and final court approval. The consent decree and information on how to submit a public comment are also available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees .


title: Man Sentenced for Sex Trafficking Conspiracy

body_text: A Texas man was sentenced today to 22 years and six months in prison for conspiracy to commit sex trafficking by force, fraud, or coercion. According to court documents, in 2021 and 2022, Gregory Massey, 30, and his girlfriend and co-defendant Patricia Hart, 25, forced two adult victims to engage in commercial sex in different locations. Massey and Hart advertised the victims for commercial sex on websites, kept the money the victims made from commercial sex transactions, required the victims to earn a minimum dollar amount from commercial sex every day, and restricted the victims’ access to food. Massey also tracked the geolocation data on the victims’ phones so that they could not leave his control and used physical violence, including punching and strangling one victim while another watched, and threats of physical violence to force the victims to comply with his demands. Massey pleaded guilty in January. He agreed to pay $128,800 in restitution to the victims. As a result of his plea, Massey must also participate in the sex offender registration and notification program. Hart also pleaded guilty in November 2023 to conspiracy to commit sex trafficking. She is scheduled to be sentenced on June 25. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Deputy Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI); and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New Orleans Field Division made the announcement. HSI, ATF, and the Louisiana State Police investigated the case. Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana prosecuted the case.


title: Federal Court Permanently Shuts Down Connecticut Tax Preparer and Businesses

component: Tax Division

body_text: The U.S. District Court for the District of Connecticut issued a permanent injunction today against a Connecticut tax return preparer, Juan Carlos Frias, and his businesses, USA Tax LLC, Multi Latin Services LLC and Connecticut Tax and Services Inc., permanently barring them from preparing federal tax returns for others. According to Justice Department’s complaint, from 2017 through 2021, Frias and his companies prepared over 10,000 tax returns for customers. The complaint alleges that, during those years, Frias and his companies displayed a pattern of filing tax returns that understated customers’ liabilities and inflated their refunds by falsifying business expenses, reporting false filing statuses and qualifying children or dependents, claiming false education and residential energy credits and fabricating erroneous itemized deductions, including medical and dental expenses, charitable deductions and impairment-related work expenses. According to the IRS, anyone who is paid to prepare or assists in preparing federal tax returns is legally required to have a valid Personal Tax Identification Number (PTIN) and paid preparers must sign and include their PTIN on the return. Not signing the return, commonly known as “ghost preparation” is often a red flag that a preparer is attempting to avoid detection by the IRS. The United States alleges that Frias acted as a ghost preparer. According to the court’s order, Frias and his businesses consented to entry of the injunction, which permits the United States is permitted to conduct post-judgment discovery to monitor compliance with the injunction. The order requires that they (1) send notice of the injunction to each person for whom Frias and his companies prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2018, to the present and (2) post a paper copy of the injunction at all physical locations where they conducted business and an electronic copy of the injunction on any business website, social media site or social media profile they maintain and create over the next five years. Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details. Frias Permanent Injunction Order.pdf


title: West Chester Man Pleads Guilty to Abusive Sexual Contact on an Aircraft

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Edward Decker, 46, of West Chester, PA, pleaded guilty today before U.S. District Judge Nitza I. Quinones Alejandro to one count of abusive sexual contact on an aircraft. According to court documents, Decker, on or about July 29, 2022, while on board an American Airlines flight from San Diego, California to Philadelphia, intentionally touched the thigh and breast of a minor while she was sleeping. The victim woke up from her sleep on this overnight flight to find Decker, who was seated in her row, with his hands and face under her clothes and on her body. “The facts of this case are incredibly disturbing — a parent’s nightmare, really,” said U.S. Attorney Romero. “Not only should people feel safe putting their kids on a plane to get from Point A to Point B, everyone should feel free to close their eyes mid-flight without fearing a seatmate’s intentions. We and the FBI will continue to crack down on these crimes aboard aircraft, to support and ensure justice for the victims.” "This guilty plea demonstrates that those who commit sexual assault aboard aircrafts will be held responsible," said Wayne A. Jacobs, special agent in charge of FBI Philadelphia. "While our office will continue to aggressively pursue offenders, we encourage everyone to be aware of their surroundings while in flight and to report incidents of abusive sexual contact to their flight crew and the FBI.” Sentencing is set for September 23, 2024, at 11:00 a.m. and the defendant faces a maximum possible sentence of three years’ imprisonment. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Josh A. Davison.


title: Magellan Diagnostics Agrees to Plead Guilty and Pay $42 Million to Resolve Criminal Charges

component: USAO - Massachusetts

body_text: BOSTON – Magellan Diagnostics, Inc., a medical device company headquartered in Billerica, Mass., has agreed to resolve criminal charges relating to its concealment of a device malfunction that produced inaccurately low lead test results for potentially tens of thousands of children and other patients. As part of the criminal resolution, Magellan will plead guilty to violations of the federal Food, Drug and Cosmetics Act and pay a $21.8 million fine, $10.9 million in forfeiture and a minimum of $9.3 million to compensate patient victims. Today’s resolution also includes a deferred prosecution agreement to resolve felony conspiracy fraud charges against the company. Magellan’s devices – LeadCare Ultra, LeadCare II and LeadCare Plus – detected lead levels and lead poisoning in the blood of children and adults using either venous (i.e., blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Plus and LeadCare Ultra were predominantly used to test venous samples. Magellan has admitted that it misled its customers and the FDA about a serious malfunction that affected Magellan’s LeadCare devices when they were used to test venous blood samples. By hiding the malfunction and later deceiving customers and the FDA about when the company discovered the malfunction, the nature, extent and frequency of the malfunction, and the risks associated with the malfunction, Magellan caused an estimated tens of thousands of children and other patients to receive inaccurately low lead test results. Magellan first learned that a malfunction in its LeadCare Ultra device could cause inaccurate lead test results – specifically, lead test results that were falsely low – during the FDA clearance process in June 2013. Magellan, however, released LeadCare Ultra to the market in December 2013 without informing customers or the FDA of the malfunction. Several months after the release, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. In response, Magellan told its customers that it had only recently identified the malfunction and had not observed the malfunction in its clinical trials prior to product release. Magellan, in fact, had known about the malfunction for over a year, including before the product release. Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device, which was by far Magellan’s highest-revenue product. Magellan, however, did not notify its customers and the FDA about the LeadCare II malfunction until November 2016. In 2017, the FDA contacted Magellan and asked when the company first discovered the malfunction. Magellan’s representative falsely told the FDA that Magellan first discovered the problem after receiving customer complaints in late 2014 and shortly before Magellan notified the FDA in 2015 – even though Magellan had discovered the malfunction in 2013. Magellan then sent a false timeline to the FDA, which omitted the company’s internal 2013 studies about the malfunction. The FDA ultimately found that the LeadCare Devices could not accurately test venous samples, leading to a recall of all LeadCare Devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II and LeadCare Plus for venous blood samples because of the malfunction. According to the Centers for Disease Control and Prevention, there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead. As part of today’s criminal resolution, Magellan has agreed to compensate all patients who were demonstrably harmed for the pecuniary damages they suffered as a result of the malfunction in Magellan’s blood lead testing devices. If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013–2017, please complete the questionnaire located on the FBI’s website at www.fbi.gov/MagellanCaseInquiry . Information about the status of the case is located on the U.S. Attorney’s Office website: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/magellan-diagnostics-inc . Acting U.S. Attorney Joshua S. Levy; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Roberto Coviello, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Jamie Herbert, Kelly Lawrence, Elysa Wan and Leslie Wright of the Criminal Division are prosecuting the case.


title: Former teacher pleads guilty to possession of child pornography

component: USAO - New York, Western

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Anthony V. Giambrone, 40, of Kenmore, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession of child pornography involving prepubescent minors, which carries a maximum penalty of 20 years in prison. Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in April 2020, Giambrone, a former teacher with Erie One BOCES working at Maryvale Intermediate School, possessed images of child pornography on two separate laptop computers. Giambrone possessed approximately 1,052 images and 381 videos of child pornography, some of which included prepubescent minors. The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger. Sentencing is scheduled for August 27, 2024, at 12:00 p.m. before Judge Arcara. # # # #


title: Lafayette Parish Couple Charged With Drug Trafficking

component: Drug Enforcement Administration (DEA)

body_text: NEW ORLEANS, LOUISIANA – TERRY REED , age 54, and CHASSIDY MENARD , age 38, a couple from Lafayette Parish, were charged on May 9, 2024, in a four-count indictment by a federal grand Jury. REED was charged with possession with intent to distribute fifty grams or more of methamphetamine, a Schedule II controlled substance, its salts, isomers, and salts of its isomers, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A); felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1); and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c). MENARD was charged with simple possession of heroin, in violation of 21 U.S.C. § 844(a), announced U.S. Attorney Duane A. Evans. If convicted of the drug count, REED faces a mandatory minimum term of imprisonment of 10 years, up to life imprisonment, a fine of up to $10,000,000, at least 5 years of supervised release, and a $100 mandatory special assessment fee. If convicted of felon in possession of a firearm, REED faces a term of imprisonment up to 15 years, a fine of up to $250,000, up to 3 years of supervised release, and a $100 mandatory special assessment fee. If convicted of possession of a firearm in furtherance of a drug trafficking crime, REED also faces a consecutive mandatory minimum term of imprisonment of 5 years, up to life imprisonment, a fine of up to $250,000, up to 5 years of supervised release, and a $100 mandatory special assessment fee. MENARD faces imprisonment up to 1 year, and a minimum fine of $1,000. If convicted, REED shall pay a $100 mandatory special assessment fee for each count. If convicted, MENARD must pay mandatory special assessment fee of $25. According to the filed indictment, on or about February 3, 2024, REED intentionally possessed with the intent to distribute (50) grams or more of methamphetamines, possessed a firearm, a Ruger Model LC9, nine-millimetre pistol despite being previously convicted of a felony which prohibits possession of firearm. REED allegedly used the illegally possessed firearm in furtherance of a drug trafficking crime. Finally, on February 3, 2024, MENARD allegedly intentionally possessed heroin. U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt. This case was investigated by the St. John the Baptist Parish Sheriff’s Office and the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney Lauren Sarver of the Narcotics Unit.


title: Richmond man previously convicted on weapons charges sentenced for possessing a machinegun

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

body_text: RICHMOND, Va. – A Richmond man was sentenced today to two years in prison for possession of a machinegun. According to court documents, on Sept. 9, 2022, a Hanover County deputy sheriff performed a traffic stop in a car in which Jarec Dominique Brown, 23, was a passenger. At the time, Brown possessed a backpack at his feet. The deputy lawfully searched the backpack and recovered a 9mm firearm equipped with a machinegun conversion device (MCD), rendering the firearm capable of fully automatic fire. Brown was also in possession of three ammunition magazines and 66 rounds of ammunition. Brown admitted to purchasing the MCD on the darknet. Brown has three previous convictions for possession of a concealed weapon. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Colonel David R. Hines, Hanover County Sheriff’s Office, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr. Assistant U.S. Attorney Stephen W. Miller and former Special Assistant U.S. Attorney Devon E. Schulz, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-141.


body_text: WASHINGTON – A Texas man was sentenced today to 22 years and six months in prison for conspiracy to commit sex trafficking by force, fraud, or coercion. According to court documents, in 2021 and 2022, Gregory Massey, 30, and his girlfriend and co-defendant Patricia Hart, 25, forced two adult victims to engage in commercial sex in different locations. Massey and Hart advertised the victims for commercial sex on websites, kept the money the victims made from commercial sex transactions, required the victims to earn a minimum dollar amount from commercial sex every day, and restricted the victims’ access to food. Massey also tracked the geolocation data on the victims’ phones so that they could not leave his control and used physical violence, including punching and strangling one victim while another watched, and threats of physical violence to force the victims to comply with his demands. Massey pleaded guilty in January. He agreed to pay $128,800 in restitution to the victims. As a result of his plea, Massey must also participate in the sex offender registration and notification program. Hart also pleaded guilty in November 2023 to conspiracy to commit sex trafficking. She is scheduled to be sentenced on June 25. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Louisiana Field Division made the announcement. Homeland Security Investigations, ATF, and the Louisiana State Police investigated the case. Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana prosecuted the case.


title: Florida Man Arrested for Embezzling from Employer

body_text: BOSTON – A Florida man has been arrested and charged for allegedly embezzling approximately $4 million from his employer, a Florida-based portfolio company owned by a Massachusetts investment firm. Paul Schnitzer, 51, of Clermont, Fla., was charged with one count of wire fraud. Schnitzer was arrested this morning and will make an initial appearance in the Middle District of Florida tomorrow. He will appear in federal court in Boston at a later date. According to the charging document, Schnitzer worked as the finance director for the portfolio company. It is alleged that between January 2023 and May 2024, Schnitzer made over 90 transfers, each of tens of thousands of dollars disguised as “equity distributions,” from the company’s operating account into his personal account. To hide these transfers, Schnitzer allegedly provided falsified financial reports with inflated cash balances for the company to the investment firm. It is also alleged that Schnitzer secretly used a line of credit to replenish the company’s operating account after he had stolen from it. The charge of wire fraud provides 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. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.


title: Brooklyn Man Sentenced to Nearly Six Years in Prison for Role in Drug Trafficking Conspiracy Involving Over 50 Kilograms of Cocaine

body_text: BOSTON – A Brooklyn man was sentenced today in federal court in Boston for his role in a drug trafficking organization (DTO) wherein he transported kilograms of cocaine from New York to Boston in August 2020. Dinelson Hernandez-Rodriguez, 30, was sentenced by U.S. District Court Judge Patti B. Saris to 68 months incarceration and three years of supervised release. In February 2024, a jury found Hernandez-Rodriguez guilty of conspiracy to distribute and to possess with intent to distribute cocaine. In October 2019, an investigation began into a DTO trafficking cocaine and fentanyl in Boston and Taunton. Intercepted communications established that the DTO was supplied in part by individuals in New York. In August 2020, Hernandez-Rodriguez drove from New York to Hyde Park with kilograms of cocaine hidden in a trap compartment inside a Honda Pilot automobile. One day prior, a co-conspirator also transported kilograms of cocaine from New York to Hyde Park. In total, Hernandez-Rodriguez and his co-conspirator transported more than 50 kilograms of cocaine intended for distribution in Boston. After cocaine was distributed in the Boston area, Hernandez-Rodriguez attempted to transport $240,240 in drug proceeds – again, hidden in the trap inside his car – back to New York but was intercepted by law enforcement. Hernandez-Rodriguez is the ninth defendant to be convicted in this case, either by guilty plea or following a jury trial. Acting United States Attorney Joshua S. Levy and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Valuable assistance was provided by the Connecticut State Police and the Boston, Taunton and Stratford (Conn.) Police Departments. Assistant U.S. Attorneys Samuel R. Feldman and K. Nathaniel Yeager of the Narcotics & Money Laundering Unit are prosecuting the case. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Rhode Island Man Sentenced for Role in Southeastern Massachusetts Fentanyl Trafficking Conspiracy

body_text: BOSTON – A Rhode Island man was sentenced today for his involvement in a drug trafficking organization (DTO) that distributed fentanyl throughout Southeastern Massachusetts and Rhode Island. Alfredo Valdez, 45 of Providence, R.I. was sentenced by U.S. District Court Judge Allison D. Burroughs to 30 months in prison and three years of supervised release. In February 2024, Valdez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. Valdez was one of 10 individuals indicted by a federal grand jury in August 2022 in connection with the conspiracy. In March 2021, an investigation began into a DTO operating in Southeastern Massachusetts and Rhode Island led by Estarlin Ortiz-Alcantara. Intercepted communications on numerous cellphones identified Valdez as a member of the DTO who conspired with Ortiz-Alcantara to regularly distribute multi-kilograms of fentanyl from a base of operations at a stash house in Fall River. During a search of the stash house in July 2022, Valdez was found inside the apartment along with more than 12 kilograms of fentanyl stored in various ceiling panels, blenders, a hydraulic press and baggies. Valdez is the eighth defendant to plead guilty in the case. Ortiz-Alcantara pleaded guilty in December 2023 and is scheduled to be sentenced on July 9, 2024. Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit is prosecuting 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 . The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.


title: Two Individuals Sentenced to Prison for Impersonating and Defrauding Comcast and Charter Customers

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Estifany Herrera Cedano, 45, of Yonkers, NY, and Johnny Israel Ramos Castillo, 31, of the Dominican Republic, were sentenced to prison by United States District Judge Juan R. Sánchez for impersonating over 150 customers of Comcast and Charter as part of a fraudulent scheme to obtain iPhones and iPads through identity theft. Herrera Cedano was sentenced to 81 months’ imprisonment followed by three years of supervised release on convictions for wire fraud and aggravated identity theft and ordered to pay restitution in the amount of $347,666.07 to Comcast and $245,697.76 to Charter. Ramos Castillo was sentenced to 54 months' imprisonment followed by three years of supervised release on convictions for wire fraud and aggravated identity theft and ordered to pay restitution in the amount of $50,327.19 to Comcast and $217,948.01 to Charter. Between 2019 and 2020, Herrera Cedano and Ramos Castillo orchestrated a sophisticated operation, obtaining stolen identities and account information of Comcast and Charter customers from a source in the Dominican Republic. They entered Comcast Xfinity and Charter Spectrum retail stores across the country, presenting fabricated photo identifications bearing their photos but the customers' information. They used the customers' personal identifying information and accounts to sign up for mobile service in unsuspecting customers' names and obtain smartphones and related devices on credit. The customers would first learn about the fraudulent charges when they received their monthly bill long after the devices had left the stores and had been shipped overseas for resale. Law enforcement identified over 560 mobile devices stolen through this multi-state scheme, amounting to actual losses of $593,363.83. The fraudulent transactions involving Herrera Cedano and Ramos Castillo were identified through store surveillance video, along with financial, phone, and sales transaction records. Comcast and Charter eliminated the charges against the individual accounts, ensuring that the victims suffering the financial loss were strictly the corporations. "Identity theft and other financial frauds are serious crimes that can have a devastating and long-lasting impact on victims," said U.S. Attorney Romero. "Our office and law enforcement partners are committed to stopping fraud scams and punishing those responsible and protecting the financial well-being of the American public." "A priority investigative focus of Homeland Security Investigations (HSI) is the identification and investigation of financial fraud," said Acting Special Agent in Charge of HSI Philadelphia Sara C. Bay. “Together with our partner agencies and the U.S. Attorney's Office for the Eastern District of Pennsylvania, we continue to have great success in dismantling these criminal organizations and safeguarding the financial safety of the American public." The case was investigated by Homeland Security Investigations – Harrisburg/York. The case was prosecuted by Assistant United States Attorney Samuel S. Dalke.


title: Companies that Own and Operate Oil Tanker Plead Guilty to Environmental Crimes

component: Energy and Natural Resources Division

body_text: Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty today to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log. Exhibit 1 in U.S. v. Prive Overseas Marine, LLC and Prive Shipping Denizcilik Ticaret, A.S., case number 24-cr-00074. Credit: USCG. The guilty pleas were entered in federal court in New Orleans before Chief U.S. District Court Judge Nannette Jolivette Brown. If the court approves the plea agreement, the companies will be fined a total of $2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master. The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors. “Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.” “This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.” “Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment." “It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.” The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard. The proposed $2 million criminal penalty includes $500,000 in organizational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to $500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction. Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship. The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from USCG Sector New Orleans. Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case. Exhibits in U.S. v. Prive Overseas et al. 24-cr-00074.pdf


title: Baltimore BGF Gang Member Sentenced To 28 Years In Federal Prison For Racketeering Conspiracy Charge, Including Murder

component: Organized Crime Drug Enforcement Task Forces

body_text: Baltimore , Maryland – On Tuesday, May 21, U.S. District Judge James K. Bredar sentenced Wayne Prince, a/k/a “Taz,” age 24, of Baltimore to 28 years imprisonment, followed by 5 years of supervised release, for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (“BGF”) gang. 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 - Baltimore Field Division; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Department. According to his plea agreement and other court documents, beginning in 2018 Prince was a member and associate of the BGF, also known as “Jamaa,” and participated in the BGF criminal enterprise, including a murder, a drug distribution conspiracy, possession with intent to distribute drugs and robbery. BGF is a nationwide gang which began operating in prisons and is now involved in criminal activity, including murder, murder-for-hire, robbery, extortion, drug trafficking, obstruction of justice and witness intimidation, in cities throughout the United States, including Baltimore and throughout Maryland. As detailed in his plea agreement, on August 7, 2018, Prince and two co-conspirators attempted to murder an individual at a home that the intended target owned and was having renovated. A construction crew was on site at the time. During the attempted murder, Prince and a co-conspirator shot and killed one of the construction workers using a .40 caliber handgun. They also shot a second construction worker in the head, but that person survived the attack. Later that day, Prince bragged to an associate during a recorded jail call, “I’m about to get some money soon,” referring to an expected payment from Co-Conspirator 2 for Prince’s role in the attempted murder of the target. From August 7 to August 9, 2018, Prince exchanged messages with a now-deceased member of Co-Conspirator 2’s inner circle, in which Prince made arrangements to collect payment from Co-Conspirator 2 for his role in the attempted murder of the target. This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin . This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. United States Attorney Erek L. Barron commended the ATF, the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Ari D. Evans, Patricia C. McLane, and Kim Y. Hagan who are prosecuting 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-psnexile and https://www.justice.gov/usao-md/community-outreach . # # #


title: Chinese national charged in “pig butchering” scheme

component: USAO - Texas, Eastern

body_text: TYLER, Texas – A Chinese national has been charged with participating in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Fei Liao, 29, of San Gabriel, California, was brought into federal custody on May 3, 2024. On May 20, 2024, Liao waived arraignment and pleaded not guilty to the charges. The indictment charges Liao with conspiracy to commit wire fraud and conspiracy to commit money laundering. Liao and others allegedly conspired to open shell companies and bank accounts to launder victim proceeds of cryptocurrency investment scams – also known as “pig butchering” – and other fraudulent schemes. Then, they allegedly transferred the funds involved in the fraud schemes to domestic and international financial institutions. Each of the charges for conspiracy to commit wire fraud and conspiracy to commit money laundering carry a maximum statutory sentence of 20 years in federal prison. According to court documents, pig butchering fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services or social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme operating fraudulent cryptocurrency investment platforms and applications, where victims are persuaded to make financial investments. Once funds are sent to scammer-controlled accounts, the investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to make additional investments. Ultimately, the victims are unable to withdraw or recover their money, often resulting in significant losses for the victims. An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. This case is being investigated by the U.S. Secret Service, Tyler Resident Office. This case is being prosecuted by Assistant U.S. Attorney Robert Austin Wells. If you or someone you know is a victim, report it to the www.IC3.gov. In the report, please reference “Pig Butchering PSA” and include as much information as possible in the complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions. ###


title: Cedar Rapids Man Charged with Attempted Sex Trafficking of a Child and Destruction of Evidence

component: USAO - Iowa, Northern

body_text: Joshua Johnson, age 49, of Cedar Rapids, Iowa, has been charged with attempted sex trafficking of a child and destruction of evidence. The charges are contained in an Indictment filed on May 9, 2024, in United States District Court in Cedar Rapids. The Indictment alleges that, in December 2023, Johnson attempted to recruit, entice, obtain, patronize, and solicit a person he believed to be under 14 to engage in a commercial sex act. The Indictment also alleges that Johnson destroyed electronic data with the intent to impede, obstruct, and influence the investigation. If convicted, Johnson faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, and at least five years and up to life on supervised release following any imprisonment. Johnson appeared for a detention hearing on May 20, 2024, in federal court in Cedar Rapids and was held without bond. Johnson’s next appearance for trial is set for July 15, 2024. As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty. This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and the Iowa Division of Criminal Investigation. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.” Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is CR 24-38. Follow us on Twitter @USAO_NDIA.


title: Zone Fifth Street Gang Members Convicted for Racketeering (RICO), Drug, and Firearms Charges in Federal Court

body_text: DAVENPORT, Iowa – A federal jury in Davenport convicted five gang members yesterday, May 16, 2024, for Conspiracy to Engage in Racketeering Activity, Possession with Intent to Distribute a Controlled Substance, and Possession of Firearms and Ammunition as a Felon. According to public court documents and evidence presented during the two-week jury trial, Don Christopher White, Jr., 37, Raheem Jacques Houston, 30, Deaguise Ramont Hall, 34, Devell Carl Lewis, 35, and Simmeon Terrell Hall, 34, among others, were members and associates of a criminal organization or Enterprise known as the “Arsenal Courts Posse a/k/a Zone Fifth a/k/a Fifth Street Mafia a/k/a Rock Town Money Getters (RTMG) a/k/a Money Team,” whose members and associates engaged in acts of violence. The Enterprise’s origins began in Rock Island, Illinois, in the late 1990s and early 2000s. At that time, members and associates of the Enterprise referred to themselves as the Arsenal Courts Posse. Arsenal Courts was the former name of Century Woods, a housing complex which members or associates of the Enterprise lived in or frequented on a regular basis. The housing complex is located in the 1400 block of Fifth Street. Between 2009 and 2011, the younger members and associates of the Enterprise began referring to themselves as “Zone Fifth” or “Fifth Street Mafia” continuing to represent the location of the Enterprise’s territory. As alleged in the indictment, the principal purposes and objectives of the Enterprise were to distribute controlled substances, obtain money and things of value, and earn and maintain respect in the Quad Cities. White, Houston, Lewis, Deaguise Hall, and Simmeon Hall were all found guilty of conspiracy to engage in racketeering activity. As part of this racketeering activity, the jury further found that this gang committed multiple acts involving murder and trafficking in controlled substances. Additionally, Houston and White were found guilty of felon in possession of firearms and ammunition; Deaguise Hall and Simmeon Hall were found guilty of possession of cocaine base with an intent to distribute. Defendants’ sentencings have not been scheduled. White faces a maximum of 40 years in prison. Houston faces a maximum of 30 years in prison. Lewis, Deaguise Hall and Simmeon Hall each face a maximum of 20 years in prison. A federal district court judge will determine any sentence after considering the United States sentencing guidelines and other statutory factors. There is no parole in the federal court system. Co-defendants, Devante Atwell French, Michael Linn Cross, Lashawn D. James Hensley, Ricky Lee Childs, Jr., Timothy Justin Beaver, Rasheem Damonte Bogan, Kylea Dapri Cartwright, Jr., and Cortez Deangelo Cooper, Jr. were also charged as part of the investigation. Jury trial for co-defendants French, Cross, and Hensley, is scheduled for August 5, 2024. Jury trial for co-defendants Beaver, Bogan, Cartwright, Childs and Cooper is scheduled for November 4, 2024. “The Quad Cities community deserves to go about their days free from the threat of violence used by these defendants,” stated United States Attorney Richard Westphal. “Whether individually or as part of a gang, people that choose to use violence as part of their criminal enterprise will be held accountable. Our gratitude to the multiple local, state and federal law enforcement officers who spent countless hours working on this investigation. Showing, as police officers do every day, that the protection of the community is their highest priority.” United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department, the Rock Island Police Department, the Iowa Department of Criminal Investigation, the Iowa State Patrol, the Moline Police Department, the Scott County Sheriff’s Office, the Bettendorf Police Department, the Des Moines Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco and Firearms. 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.


title: Richmond County man pleads guilty to a federal charge for bomb scare at Social Security office

body_text: AUGUSTA, GA: A Richmond County man entered a guilty plea to a federal charge related to a bomb threat targeting the Social Security Administration’s Augusta office. Keyon Tishaye Dickens , 38, of Augusta, pled guilty to Using a Telephone to Make a Threat to Injure a Person or Damage a Building by Explosives, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The plea subjects Dickens to a potential sentence of up to 10 years in prison, and there is no parole in the federal system. As described in the plea agreement, Dickens received a notice in September 2023 that the Social Security Administration intended to recoup overpayments to his Supplemental Security Income from future SSI checks. He called the Social Security Administration office in Augusta to complain and stated, “I’m going to shoot the office up and I’m going to blow it up. I haven’t decided yet what I’m going to do.” Dickens later visited the office carrying a backpack and showed a note that read “I have a bomb” to a security officer. The officer notified the Richmond County Sheriff’s Office, and the building was locked down and evacuated. No bomb was found, and Richmond County deputies took Dickens into custody. U.S. District Court Judge J. Randal Hall will schedule sentencing for Dickens upon completion of a pre-sentence investigation by U.S. Probation Services. The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Social Security Administration Office of the Inspector General, and the Richmond County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney George J.C. Jacobs III.


title: Rock Rapids Man Pleads Guilty to Failure to  Register as a Sex Offender

body_text: A man who failed to register as a sex offender pled guilty on May 17, 2024, in federal court in Sioux City. Melvin Geovani Aguilar-Lopez, age 31, from Rock Rapids, Iowa, was convicted of one count of Failure to Update his Registration as required by the Sex Offender Registration and Notification Act, in violation of 18 U.S.C. § 2250(a). In a plea agreement, Aguilar-Lopez admitted that he was required to register and update his registration under the Sex Offender Registration and Notification Act by reason of a conviction of Sexual Abuse in the Third Degree in the Iowa District Court for Lyon County Criminal No. FECR005748 on December 9, 2016. Aguilar-Lopez admitted he knew he needed to update his sex offender registration to reflect the fact he had been living in Rock Rapids for approximately 5 months and working in Lyon County for approximately 2 months. Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Aguilar-Lopez was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Aguilar-Lopez faces a term of imprisonment of between 15 to 21 months, a $250,000 fine, and 5 years of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorney Kevin Fletcher and was investigated by the Lyon County Sheriff’s Department, the Iowa Division of Criminal Investigations (Sex Offender Unit) and the United States Marshal’s Service. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-CR-04004. Follow us on Twitter @USAO_NDIA.


title: Fruitland Man Pleads Guilty to Charges Arising from Machete Attack on Motorist

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE – A Fruitland man pleaded guilty in federal court to threatening a driver, brandishing a machete and hatchet, stealing her car, and leading police on a high-speed chase. In his plea agreement, Brandon Barber , 38, an enrolled member of the Navajo Nation, admitted that on May 9, 2022, Jane Doe was driving her Jeep when his co-defendant, Lindsey Yazzie, threw a large rock at the windshield, forcing her to stop. Barber then attacked Jane Doe’s vehicle with a machete and hatchet, smashing the windshield and windows. Barber and Yazzie then pulled Jane Doe from the vehicle, and Barber proceeded to steal Jane Doe's Jeep, briefly stopping to allow Yazzie to enter the vehicle as a passenger. As Barber drove away in the stolen Jeep, he saw Jane Doe standing in the roadway and accelerated the vehicle towards Jane Doe, who had to jump out of the way to avoid being struck. When encountered by the Navajo Police Department, Barber led them on a high-speed chase until the police were forced to terminate the pursuit due to public safety risks. The Court ordered that Barber remain in custody pending sentencing, which has not been scheduled. At sentencing, Barber faces up to 15 years in prison. Upon his release from prison, Barber will be subject to up to three years of supervised release. Lindsey Yazzie is currently scheduled to stand trial on July 8, 2024. U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today. The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Robert James Booth II is prosecuting the case. View the Plea Agreement # # #


title: Laguna Man Pleads Guilty to Three Counts of Second-Degree Murder

component: USAO - New Mexico

body_text: ALBUQUERQUE – A Laguna man has pleaded guilty in federal court to charges stemming from a fatal DWI crash on Laguna Pueblo in 2022 that killed three members of the same family. In his plea agreement, Cody Allen Charlie , 37, an enrolled member of the Pueblo of Acoma, admitted that on August 7, 2022, he was driving drunk, traveling at 116 miles per hour while also using his cell phone when he crashed into another vehicle on Interstate 40, near mile marker 130. The impact caused the other vehicle to veer off the interstate, onto the shoulder where it rolled over. All three occupants of that vehicle—identified as John Doe 1, John Doe 2, and Jane Doe—were killed in the crash. Instead of rendering aide, Charlie fled the scene on foot. The Court ordered that Charlie remain in custody pending sentencing, which has not been scheduled. At sentencing, Charlie faces between 10 and 20 years in prison. Upon his release from prison, Charlie will be subject to up to five years of supervised release. U.S. Attorney Alexander M.M. Uballez made the announcement today. The Bureau of Indian Affairs investigated this case with assistance from the Laguna Police Department and New Mexico State Police. Assistant U.S. Attorneys Brittany DuChaussee and Zachary C. Jones are prosecuting the case. View the Plea Agreement # # #


title: Albuquerque Man Sentenced for Federal Firearms Offense

body_text: ALBUQUERQUE – An Albuquerque man was sentenced to 15 years in prison after pleading guilty to being a felon in possession of a firearm. This case was adopted from state prosecution in cooperation with the Second Judicial District Attorney’s Office. According to court documents, on November 13, 2022, a husband and wife were waiting for food at a Church's Chicken drive-thru on Broadway Blvd SE. Joseph Dino Lopez , 59, approached their car, banged on the window, and yelled at them while appearing under the influence. Surveillance footage shows Lopez retrieving a blue bag containing a shotgun and approaching the victims' parked car. After an altercation where the male victim pepper sprayed him, Lopez pulled out the shotgun, loaded it, and pointed it at the couple before they fled. Lopez briefly left the scene to wash the pepper spray out of his eyes, but returned, and APD arrested him as he exited the Church's Chicken restaurant. The loaded shotgun was recovered from the blue bag he had left behind, and additional ammunition was discovered in his shirt pocket. At the time of the offense, Lopez had previously been convicted of a total of nine felonies. After completing his term of imprisonment, Lopez will be required to serve 3 years of supervised release. There is no parole in the federal system. U.S. Attorney Alexander M.M. Uballez and Bernalillo County District Attorney Sam Bregman made the announcement today. The Albuquerque Police Department investigated this case with assistance from the FBI Albuquerque Field Office. Special Assistant U.S. Attorney Peter Haynes prosecuted the case as part of an agreement with the Second Judicial District Attorney’s Office. Through the agreement, Assistant District Attorneys are designated Special Assistant United States Attorneys (SAUSAs) in the United States Attorney’s Office. The SAUSA from the Second Judicial District Attorney’s Office screens felony criminal complaints filed in Bernalillo County for federal criminal offenses, prioritizing federal charges against those who drive violence in the Albuquerque metropolitan area. Since 2020, the United States Attorney’s Office has reviewed almost 3,000 cases and has charged more than 300 criminal cases pursuant to this program. The United States Attorney’s Office has similar agreements with the New Mexico Department of Justice and the First Judicial District Attorney’s Office and plans to expand the program throughout the state. # # #


title: Two Northern Kentucky Men Sentenced for Role in Conspiracy to Illegally Distribute Firearms

component: USAO - Kentucky, Eastern

body_text: COVINGTON, Ky. – Two Covington men, Cylis Rowe, 23, and Clifton Barnett, 25, have been sentenced, by U.S. District Judge David Bunning, to 124 months and 70 months in prison respectively, for conspiring to distribute firearms to others who could not legally possess them. Rowe’s sentencing also included one count of possession of a firearm in furtherance of drug trafficking. According to his court documents, in 2022, law enforcement began investigating individuals regularly selling and possessing firearms and machinegun conversion devices, known colloquially as Glock switches, to individuals engaged in drug trafficking and other criminal offenses. The investigation showed that Rowe and Barnett conspired with Demarco Sturgeon, 23, and others, to distribute the firearms illegally. Sturgeon admitted he was aware of the conspiracy’s straw purchases and distributed over 100 firearms between 2020 and 2022. Evidence showed that Rowe and Barnett purchased numerous firearms, and Sturgeon sold the guns directly, and through Facebook Messenger. Law enforcement searched all three defendants’ residences; at Rowe’s and Sturgeon’s residences, they found firearms and marijuana. Both Rowe and Sturgeon admitted to extensive firearms trafficking and regularly distributed marijuana, while in possession of firearms, and that they possessed the firearms at their residences to protect them against the dangers associated with drug trafficking. Sturgeon was previously sentenced, in March 2024, to 130 months in prison and five years of supervised release. Under federal law, Rowe and Barnett must serve 85 percent of their prison sentences. Upon their release from prison, Rowe will be under the supervision of the U.S. Probation Office for five years, and Barnett will be under supervision for three years. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Shawn Morrow Special Agent in Charge, ATF Louisville Field Division, jointly announced the sentences. The investigation was conducted by ATF. Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the United States. — END—


title: Arizona Tax Preparer Pleads Guilty to Filing False Tax Returns as Part of a Nationwide Abusive-Trust Tax Shelter Scheme

body_text: An Arizona man pleaded guilty on Friday to two counts of assisting in the preparation of false tax returns for individuals who used an abusive-trust tax shelter to underreport their income and tax liabilities. According to court documents and statements made in court, from 2017 to 2023, Kent Ellsworth operated Ellsworth Stauffer P.C., a return preparation business. During that time, Ellsworth participated in a scheme to defraud the IRS that involved the promotion, sale and implementation of a fraudulent tax shelter. Ellsworth participated by preparing and filing over 500 false tax returns for approximately 60 clients nationwide who used the tax shelter to conceal income from the IRS and not pay tax. Ellsworth intentionally caused more than $60 million in income to be fraudulently sheltered from the IRS, which resulted in a tax loss to the IRS of approximately $17 million. Ellsworth prepared the false tax returns to further the abusive-trust tax shelter scheme carried out by others. Clients who purchased the tax shelter – most of whom were successful business owners – were directed to assign or “donate” nearly all of their income to sham trusts and a so-called “private family foundation” to create the illusion that the income was not theirs. However, the sham trusts and foundations were nothing more than bank accounts designed to hold funds the clients earned and continued to control. To carry out the scheme, Ellsworth was taught how to prepare tax returns utilizing the scheme’s fraudulent methods. He was instructed to report all income assigned to a sham trust as income of the trust and to offset that income by deducting all expenses paid for by the trust, including the clients’ personal living expenses. Ellsworth was paid fees for preparing the returns by the clients participating in the tax shelter. Ellsworth is scheduled to be sentenced on Aug. 14. He faces a maximum penalty of three years in prison for each count of preparing and filing false tax returns. Ellsworth also faces a maximum fine of $250,000, a period of supervised release and the costs of prosecution for each count. 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 Special Agent in Charge Andy Tsui of IRS Criminal Investigation’s (IRS-CI) Denver Field Office made the announcement. IRS-CI is investigating the case. Trial Attorneys Amanda R. Scott and Lauren K. Pope and Senior Litigation Counsel Corey J. Smith of the Tax Division are prosecuting the case.


title: “Incognito Market” Owner Arrested For Operating One Of The Largest Illegal Narcotics Marketplaces On The Internet

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”); Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Charles Grinstead, the Special Agent in Charge of the Kansas City Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations (“FDA-OCI”); Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”); and Elana Iatarola, the Special Agent in Charge of the Cincinnati Field Office of the FBI, announced today the arrest of RUI-SIANG LIN, a/k/a “Ruisiang Lin,” a/k/a “林睿庠,” a/k/a “Pharoah,” a/k/a “faro,” in connection with his operation and ownership of “Incognito Market,” an online dark web narcotics marketplace that enabled its users to buy and sell illegal narcotics anonymously around the world. LIN was arrested at John F. Kennedy Airport on May 18, 2024, and will be presented in Manhattan federal court before U.S. Magistrate Judge Willis later today. U.S. Attorney Damian Williams said: “As alleged, Rui-Siang Lin operated a sophisticated and dangerous online narcotics marketplace through which he profited millions of dollars at the community’s expense. The dedicated prosecutors from the Southern District of New York and our law enforcement partners will pursue criminal actors regardless of whether they operate on street corners or in the dark corners of the internet. The so-called ‘dark web’ is not a safe haven for those who seek to break the law.” Attorney General Merrick B. Garland said: “Drug traffickers who think they can operate outside the law on the dark web are wrong. As alleged, Rui-Siang Lin was the architect of Incognito, a $100 million dark web scheme to traffic deadly drugs to the U.S. and around the world. The long arm of the law extends to the dark web, and we will bring to justice those who try to hide their crimes there.” FBI Assistant Director in Charge James Smith said: “For nearly four years, Rui-Siang Lin allegedly operated ‘Incognito Market,’ one of the largest online platforms for narcotics sales, conducting $100 million in illicit narcotics transactions and reaping millions of dollars in personal profits. Under the promise of anonymity, Lin’s alleged operation offered the purchase of lethal drugs and fraudulent prescription medication on a global scale. The FBI is committed to targeting and dismantling all criminal enterprises, especially those whose leaders distribute illegal substances on the dark web.” HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, Rui-Siang Lin’s brazen operation resulted in the illicit sale of over $100 million in narcotics, including those that were mislabeled and later found to include deadly fentanyl. The El Dorado Task Force’s Darkweb and Cryptocurrency Task Force leverages cutting-edge techniques to target even the Internet’s most savvy criminals. HSI New York, in coordination with law enforcement partners, remains resolute in its commitment to protecting the public from individuals utilizing dangerous means to make a profit.” DEA Special Agent in Charge Frank A. Tarentino III said: “The arrest of ‘Incognito Market’ owner Rui-Siang Lin is a result of the continued working relationship the DEA has with our law enforcement partners in targeting individuals who use the dark web as a marketplace to promote the sale of illicit narcotics. Mr. Lin’s alleged actions of putting profits before public health were not only reckless and dangerous, but unconscionable. We will continue to make sure those who hide behind a keyboard and use the dark web to profit off lives face justice.” FDA-OCI Special Agent in Charge Charles Grinstead said: “The FDA is committed to continuing its work to disrupt and dismantle the illegal sales of drugs on the dark web, where such sales far too often have tragic consequences. We will continue to monitor, investigate and bring to justice those who misuse the internet in a quest for profits with reckless disregard for the risk to public health and safety.” NYPD Commissioner Edward A. Caban said: “This arrest underscores the dedicated, ongoing efforts of law enforcement to identify and dismantle illicit drug networks operating from every shadowy recess of the marketplace. I commend our NYPD investigators and all of our state and federal partners for their unwavering commitment to public safety.” As alleged in the Complaint and the Indictment unsealed today: [1] Incognito Market was an online narcotics bazaar that existed on the dark web. Incognito Market formed in October 2020. Since that time, and through its closing in March 2024, Incognito Market sold more than $100 million of narcotics — including hundreds of kilograms of cocaine and methamphetamines. Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the “dark web” or “darknet.” LIN operated the Incognito market under the online pseudonym “Pharoah” or “faro.” As “Pharoah” — the leader of Incognito market — LIN supervised all of its operations, including its employees, vendors, and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation. Incognito Market was designed to foster seamless narcotics transactions across the internet and across the world and incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service. Upon visiting the site, users were met by a splash page and graphic interface, which is picture below: After logging in with a unique username and password, users were able to search thousands of listings for narcotics of their choice. Incognito Market sold illegal narcotics and misbranded prescription medication, including, heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. An example of listings on Incognito market is below: Listings included offerings of prescription medication that was advertised as being authentic but was not. For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be oxycodone, which were purchased on Incognito Market. Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills. Each listing on Incognito Market was sold by a particular vendor. To become an Incognito Market vendor, each vendor was required to register with the site and pay an admission fee. In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. That revenue funded Incognito Market’s operations, including paying “employee” salaries and for computer servers. LIN collected millions of dollars of profits from Incognito. To facilitate these financial transactions, Incognito Market had its own “bank,” which allowed its users to deposit cryptocurrency on the site into their own “bank accounts.” After a narcotics transaction was completed, cryptocurrency from the buyer’s “bank account” was transferred to the seller’s “bank account,” less the 5% fee that Incognito collected. The bank enabled buyers and sellers to stay anonymous from each other. The bank’s graphic interface is picture below: * * * RUI-SIANG LIN, 23, of Taiwan, is charged with one count of engaging in a continuing criminal enterprise, which carries a mandatory minimum sentence of life in prison; one count of narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of money laundering, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to sell adulterated and misbranded medication, which carries a maximum potential sentence of five years in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the investigative work of the FBI, HSI, DEA, FDA-OCI, and NYPD. 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-drive, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel and Nicholas Chiuchiolo are in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaint, Indictment and the descriptions of the Complaint and Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Justice Department Announces Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic Violence

component: Office of the Attorney General

body_text: The Justice Department today announced an important new resource for prosecutors. The Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims , written by prosecutors for prosecutors, sets out five principles that, if implemented, will lead to better outcomes for victims, safer communities, and greater accountability for perpetrators of sexual assault and domestic violence. “When investigating and prosecuting the heinous crimes of sexual assault and domestic violence, prosecutors must pursue justice in a manner that does not retraumatize victims and survivors,” said Attorney General Merrick B. Garland. “This framework for prosecutors reflects the Justice Department’s commitment to strengthening our collective response to sexual assault and domestic violence, and to setting the standard for how prosecutors should respond to victims and survivors.” Declinations of meritorious allegations may result from misconceptions about how crimes involving sexual assault and domestic violence are committed and reported, how victims give their accounts, and the evidence required to prove their accounts beyond a reasonable doubt. This guide addresses that phenomenon by discussing: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) the fundamental importance of prosecutors, investigators, and victim specialists working together and meeting with victims; (3) using the law and evidentiary rules effectively; (4) being thoughtful about what justice and accountability look like; and (5) sustaining a productive, healthy, and committed workforce by redefining success– all of which are rooted in a prosecutor’s primary obligation to seek the truth and uphold the U.S. Constitution and the rule of law. “Achieving justice for victims and survivors of sexual assault and domestic violence is one of the Department’s highest priorities,” said Deputy Attorney General Lisa Monaco. “This guide provides a framework that we encourage prosecutors throughout the country to use when evaluating, investigating, and prosecuting these critically important cases.” More than 120 state, Tribal, military, and federal prosecutors, as well as advocates, academics, and investigators from an array of jurisdictions were consulted in developing this guide. The principles set forth in this guide are designed to encourage and assist prosecutors of all levels of experience to handle cases involving sexual assault and domestic violence. This guide further serves as a complement to the Justice Department’s 2022 updated guidance on Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias . “The Justice Department is committed to strengthening the prosecution of sexual assault and domestic violence crimes and ensuring a trauma-informed approach to working with victims,” said Acting Associate Attorney General Benjamin C. Mizer. “This guide provides a practical, accessible framework that prosecutors can use when evaluating, investigating, and prosecuting these crimes. We thank everyone who contributed to this guide for sharing their expertise and experience and for their years of dedicated work to address and combat sexual assault and domestic violence.” “The framework announced today reaffirms our commitment to expanding access to justice for all survivors, who deserve respect and the right to be heard,” said Director Rosie Hidalgo of the Justice Department’s Office on Violence Against Women (OVW). “Enhancing the prosecution response to sexual assault and domestic violence in a trauma-informed manner is a key piece in ending gender-based violence, as part of a broader coordinated community response that includes services and support for survivors, and can have a real, immediate impact on the safety of survivors and entire communities.” In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles. OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW funds national training and technical assistance and undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw .


title: Detroit Man Pleads Guilty to Conspiracy Involving More Than $14 Million in Fraudulent Pandemic Relief Loans

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A resident of Detroit, Michigan, pleaded guilty in federal court on May 15, 2024, to a fraud conspiracy charge involving the largest known Paycheck Protection Program (PPP) fraud in the Western District of Pennsylvania, United States Attorney Eric G. Olshan announced today. Matthew Lloyd Parker, 37, pleaded guilty before United States District Judge W. Scott Hardy. In connection with the guilty plea, the Court was advised that, between March 2020 and August 2021, Parker conspired with others to defraud lenders of more than $14 million through false PPP loan applications for COVID-19 pandemic relief. Parker, a licensed CPA from Detroit, recruited hundreds of small businesses in Pittsburgh and Detroit and falsified PPP loan applications in their names. The Small Business Administration approved 226 of those applications, resulting in loans totaling approximately $14.5 million to various businesses. Judge Hardy scheduled sentencing for September 17, 2024. The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government. The United States Postal Inspection Service and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Parker.


title: Mexican National Sentenced to 10 Years in Federal Prison for Possessing Child Pornography

component: USAO - Texas, Western

body_text: DEL RIO, Texas – A Mexican national was sentenced in a federal court in Del Rio to 121 months in prison for access with intent to view child pornography. According to court documents, Felipe De Jesus Solis-Rivera, 32, of Piedras Negras, Coahuila, Mexico was reported for taking photos of a man in the restroom of an Eagle Pass store on July 14, 2019. Solis-Rivera voluntarily allowed authorities to look at the contents of his phone. Eagle Pass Police discovered videos and photos depicting child sexual abuse material. Solis-Rivera was arrested July 14, 2019 and transferred into federal custody July 23, 2019. He pleaded guilty July 10, 2021. U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. The HSI and Eagle Pass Police Department investigated the case. Assistant U.S. Attorneys Sarah Spears, Rex Beasley and Antonio Franco Jr. prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . ###


title: Former Trading Firm Executives Found Guilty of Fraud

component: USAO - Colorado

body_text: DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Michael Shawn Stewart, 61, of Scottsdale, Arizona, and Bryant Edwin Sewall, 57, formerly of Little Elm, Texas, were found guilty by a jury of 14 counts of wire fraud and conspiracy to commit wire fraud. Evidence presented at the three-week trial showed that Stewart and Sewall were owners and executives of companies operating on various Caribbean islands under the names Mediatrix Capital and Blue Isle Markets. As part of the scheme Stewart and Sewall provided false and fraudulent information about an algorithm-based foreign currency exchange (“ForEx”) trading program to potential investors and to salespeople they were using to solicit investors. For example, Stewart and Sewall falsely represented that Mediatrix had a history of successful ForEx trading going back to 2013 with no months of losses when, instead, Mediatrix did not exist until 2014 and its trading history included many months of net losses. Mediatrix promised its investors “100% Transparency,” “100% Liquidity” and “World Class Returns.” Additional evidence at trial showed that after luring investors into the scheme Stewart and Sewall fraudulently induced them to stay by manipulating account statements to show only positive trades while intentionally hiding massive losses that substantially reduced those investors’ accounts. By the end of the scheme, Stewart and Sewall had promised investors over $179 million but had only $9.8 million in their accounts, a gap that they internally referred to as “the hole.” Even as they lost approximately $32 million in trades, Stewart and Sewall rewarded themselves with approximately $30 million in performance fees. They also used their brokerage, Blue Isle, to fraudulently convert investor money into over $40 million in markup fees. They spent the money on real estate, boats, cars, jewelry, and other luxuries. “Holding white-collar criminals accountable for fraud like this is a key part of the work that we do," said United States Attorney for the District of Colorado Cole Finegan. “This was a complex scheme and these guilty verdicts are a reflection of the outstanding work of our prosecutors as well as the exceptional work of our partners at the FBI.” “The defendants orchestrated an elaborate foreign currency investment fraud scheme that caused extensive financial harm to unsuspecting victims,” said Special Agent in Charge Mark Michalek.” “FBI Denver will continue to investigate and seek justice for individuals who fall victim to criminals who cheat and lie their way into victims’ pockets.” United States District Judge William J. Martinez presided over the trial. Sentencing will be held in November 2024. Each count of wire fraud carries a maximum penalty of twenty years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment. The conspiracy count carries a maximum penalty of five years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment. A third partner involved with Mediatrix and Blue Isle — Michael Young — previously pleaded guilty to making a false statement to the Securities and Exchange Commission and will be sentenced on June 11, 2024. The Federal Bureau of Investigation’s Denver Field Office conducted the investigation. Assistant United States Attorneys Anna Edgar, Bryan Fields, and former AUSA Pegeen Rhyne handled the prosecution. Case number: 21-cr-00034-WJM