title: Hocking County woman sentenced to 40 years in federal prison for sexually exploiting children as young as 3-years-old

body_text: COLUMBUS, Ohio – A Logan, Ohio, woman was sentenced in federal court here today to 480 months in prison for sexually exploiting minors as young as 3-years-old and possessing child pornography. Carrie Daniels, 38, was charged federally in April 2022 along with her significant other, Robert Gemienhardt, 42. Gemienhardt was sentenced to 45 years’ incarceration in February 2023 for producing child pornography of a 3-year-old child and possessing thousands of images of child sexual abuse, some of which depicted other minor children to whom the defendants had access. The two defendants groomed minor victims, sexually abused the victims, and created child pornography of the abuse. According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s online child exploitation activities conducted at Daniels’s residence. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations and learned that four minor children lived in the home with Daniels and Gemienhardt. Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Daniels had produced child pornography of an approximately 3-year-old child and distributed the images she had produced to Gemienhardt. Those images were ultimately recovered on Gemienhardt’s phone. Daniels also photographed two of the minor children, who were 9 and 13 years of age at the time, nude in the bathroom. Daniels then sent those images of the minor children to Gemienhardt as well. Further evidence revealed that at times, Gemienhardt and Daniels acted together to produce child pornography through the grooming and sexual abuse of two of the minor victims to whom they had access between April and June of 2020. Daniels and Gemienhardt, who was a registered sex offender in the state of Ohio, exchanged thousands of illicit text messages detailing their sexual fantasies about four separate minor victims. Daniels pleaded guilty in October 2022 to sexually exploiting minors and possessing child pornography. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hocking County Sheriff Lanny E. North announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case. # # #


title: California Resident Sentenced To Prison For Committing Unemployment Insurance Benefits Fraud

component: USAO - Nevada

body_text: LAS VEGAS – A Stockton, California, resident was sentenced today by United States District Judge Gloria M. Navarro to 27 months in prison followed by three years of supervised release for fraudulently using unemployment insurance benefits debit cards in other peoples’ names without their authorization to withdraw thousands of dollars. Breon Dante Mims (32) pleaded guilty to illegal transaction with access devices. According to court documents, on September 20, 2020, officers from the Las Vegas Metropolitan Police Department stopped Mims walking along Las Vegas Boulevard after observing him smoking a marijuana blunt in public. During the stop, officers found Mims in possession of $10,080 in cash and 10 California Employment Development Department (EDD) debit cards issued in other names. He admitted that he possessed and used these EDD debit cards without authorization; and that he submitted the unemployment claims associated with the EDD debit cards without authorization. At least $261,600 of unemployment benefits were approved, and Mims withdrew at least $77,000 from various ATMs in Nevada and California using these fraudulently obtained EDD debit cards. United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Western Region made the announcement. The DOL-OIG investigated the case. Assistant United States Attorney Jim Fang prosecuted the case. In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF web complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . ###


title: Virginia Man Sentenced to Federal Prison for Conspiring to Violate Iranian Sanctions

component: USAO - Maryland

body_text: Greenbelt , Maryland – U.S. District Judge Lydia K. Griggsby today sentenced Behrouz Mokhtari, age 72, of McLean, Virginia and Tehran, Iran, a native of Iran and a naturalized citizen of the United States, to 41 months in federal prison, followed by three years of supervised release, for violating U.S. sanctions against Iran by conspiring to engage in prohibited business activities on behalf of persons and entities in Iran. Judge Griggsby also ordered Mokhtari to forfeit approximately $2,862,598 in proceeds derived from his criminal activity as well as a residence he purchased in Campbell, California for over $1.5 million, using such proceeds. Mokhtari pleaded guilty earlier this year to two counts of conspiracy to violate the International Emergency Economics Power ACT (“IEEPA”). The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office. “This defendant knew that he was prohibited from engaging in business with Iran, but did so anyway and attempted to conceal his actions through his control of businesses and financial entities in Iran and the United Arab Emirates,” said United States Attorney Erek L. Barron. “Now, he will not only serve time in federal prison, he will forfeit cash and property purchased with his ill-gotten proceeds.” According to his guilty plea, in one conspiracy that lasted from at least March 2018 until at least September 2020, Mokhtari agreed with his co-defendant and others to evade Iranian sanctions by engaging in business activities on behalf of Iranian entities without first obtaining the required licenses from the Office of Foreign Assets Control (“OFAC”). Mokhtari held management positions and/or maintained ownership control of multiple businesses in Iran and the United Arab Emirates (“UAE”), referred to collectively as “the FSR Network.” Mokhtari and his co-conspirators used the FSR Network to provide services to Iranian entities and engage in transactions involving Iranian petrochemical products, including refining petrochemical products and transporting them by sea. Mokhtari and his co-conspirators used bank accounts located in the UAE, including Bitubiz FZE, which was part of the FSR Network and over which Mokhtari exercised partial or complete control, to process these U.S. dollar transactions. Mokhtari admitted that Bitubiz operated as a conduit for the FSR Network to conceal the fact that Mokhtari and his co-conspirators were engaging in financial transactions with, and providing services to, Iranian entities in violation of the Iranian sanctions. Bitubiz maintained daily ledgers which recorded the receipt and transfers of funds. After receiving an incoming wire transfer, Bitubiz would credit most of that amount to Ayegh Isfahan Manufacturing Company (“AIM”). Mokhtari and others held ownership interests in AIM, which was located in Iran, was engaged in the petrochemical industry, and was part of the FSR Network. As stated in his guilty plea, in a separate conspiracy that lasted from about February 2013 until at least June 2017, Mokhtari and a number of Iranian nationals agreed to conduct illicit shipments of petrochemical products to and from Iran, in violation of the Iranian sanctions and used the U.S. financial system to facilitate such shipments. In furtherance of the scheme, Mokhtari created a front company in Panama, East & West Shipping, Inc., to purchase two liquid petroleum gas (LPG) tanker vessels for approximately $38 million. These vessels were subsequently used to transport Iranian petrochemical products in international commerce on behalf of, and to benefit, Iranian entities associated with the Government of Iran. After using East & West to purchase the two vessels (LPG Vessel 1 and 2), Mokhtari transferred ownership of the vessels to other entities, in order to conceal the conspirators’ financial and ownership interest in the two vessels. The conspirators then used another entity, Greenline Shipholding, Inc., to control operations of LPG Vessels 1 and 2. For example, through email communications from Greenline email accounts, or email accounts containing some variation of the Greenline name, the conspirators directed Company 5, a ship management company, to oversee the leasing and operation of LPG Vessel 1 and 2 to transport Iranian petrochemical products from Iranian ports to other locations and to participate in ship-to-ship transfers of Iranian products while on the high seas. The conspirators, including Mokhtari, used the United States financial system to engage in transactions related to the hiring of the vessels and other expenses. In addition, Mokhtari and his co-conspirators frequently communicated by email about the nature and source of the products that the vessels were transporting, as well as the use of false shipping documents and other measures taken to conceal the fact that the vessels were transporting products to and from Iran, in order to evade the Iranian sanctions. At some point prior to May 2017, ownership of LPG Vessel 1 was transferred to Russell Shipping, Inc., which was owned by Mokhtari. On May 30, 2017, Mokhtari sold LPG Vessel 1 to be scrapped for more than $3.1 million. Mokhtari received a total of $2,862,591.12 from that sale. The purchaser wired funds to accounts at two separate banks held in the name of Mori Construction and Development, LLC (Mori Construction). Mokhtari was the sole owner of Mori Construction and controlled both bank accounts. Through a series of inter-account transfers and check payments, by September 2017 all of the proceeds from the sale of LPG Vessel 1 were located in a third account, over which Mokhtari and his daughter had signature authority. In March 2018, Mokhtari used those proceeds to purchase a home in Campbell, California for $1,512,000. Mokhtari admitted that he knew that, as a U.S. citizen, engaging in business with Iranian entities, without first obtaining a license or permission from OFAC is prohibited. He further knew that it was illegal to engage in transactions intended to evade Iranian sanctions, or to engage in transactions related to goods and services of Iranian origin or export. United States Attorney Erek L. Barron commended FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kathleen O. Gavin, who prosecuted the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md . # # #


title: Michigan City Woman Sentenced to 63 Months in Prison

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

body_text: SOUTH BEND –Carissa McCoy, 42 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to conspiracy to distribute fentanyl, announced United States Attorney Clifford D. Johnson. McCoy was sentenced to 63 months in prison followed by 5 years of supervised release. According to documents in the case, from June through mid-August 2021, McCoy conspired with others to distribute fentanyl in the Michigan City area. Her home, which she shared with one of her co-defendants, housed currency, firearms, and ammunition related to the conspiracy. In August 2021, McCoy and one of her co-defendants were stopped by law enforcement while traveling back to Michigan City. At that time, McCoy had over a kilogram of fentanyl pills on her person. This case was investigated by the Drug Enforcement Administration (including the Chicago Field Division, the Merrillville District Office, the Amarillo Texas Resident Office and the Albuquerque New Mexico District Office) with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the LaPorte County Drug Task Force, an Indiana HIDTA Initiative, and the Michigan City Police Department. The case was prosecuted by Assistant United States Attorneys Kimberly L. Schultz and Joel Gabrielse. 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. ###


component: Federal Bureau of Investigation (FBI)

body_text: Behrouz Mokhtari, 72, of McLean, Virginia, was sentenced today to 41 months in prison followed by three years of supervised release for violating U.S. sanctions against Iran by conspiring to engage in prohibited business activities on behalf of persons and entities in Iran. In addition, Mokhtari was ordered to forfeit approximately $2,862,598 in proceeds derived from his criminal activity as well as a residence he purchased in Campbell, California, for over $1.5 million using such proceeds. Mokhtari pleaded guilty earlier this year in the District of Maryland to two counts of conspiracy to violate the International Emergency Economics Power ACT (IEEPA). According to court documents, Mokhtari engaged in a conspiracy lasting from at least March 2018 until at least September 2020 in which he conducted numerous business activities on behalf of Iranian entities without first obtaining the required licenses from the Office of Foreign Assets Control (OFAC). In a separate conspiracy lasting from about February 2013 until at least June 2017, Mokhtari and a number of Iranian nationals agreed to conduct illicit shipments of petrochemical products to and from Iran, utilizing his front company, East & West Shipping Inc., in Panama to do so. Mokhtari held management positions and/or maintained ownership control of numerous businesses in Iran and the United Arab Emirates (UAE), collectively referred to as “the FSR Network.” Using the FSR Network, he and his co-conspirators illegally provided services to Iranian entities such as the refinement and transport of petrochemical products. Mokhtari and his co-conspirators used FSR Network bank accounts in the UAE, including Bitubiz FZE, to process these U.S. dollar transactions. Mokhtari admitted that he knew that, as a U.S. citizen, engaging in business with Iranian entities without first obtaining a license or permission from OFAC is prohibited. He further knew that it was illegal to engage in transactions intended to evade Iranian sanctions, or to engage in transactions related to goods and services of Iranian origin or export. Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement. The FBI investigated the case. Assistant U.S. Attorneys Kathleen O. Gavin for the District of Maryland prosecuted the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.


title: Long Island Investment Advisers Indicted for Defrauding Clients of Millions of Dollars

component: USAO - New York, Eastern

body_text: A 16-count indictment was unsealed today in federal court in Central Islip charging investment advisers Adam Kaplan and his brother, Daniel Kaplan, with conspiracy to commit wire fraud, wire fraud, investment advisor fraud, and money laundering in connection with several schemes to steal millions of dollars from their clients. The defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge James M. Wicks. Breon Peace, United States Attorney for the Eastern District of New York, and Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges. “As alleged, the Kaplans engaged in years-long schemes violating the trust that their clients, some of them elderly and vulnerable, had placed in them to manage their money safely and honestly,” stated United States Attorney Peace. “The defendants lined their pockets at the victims’ expense, but with their lies and frauds exposed, they will be held to account for their conduct.” Mr. Peace thanked the Securities and Exchange Commission for their assistance with the case. “As alleged, the Kaplans engaged in multiple investment fraud schemes that victimized their clients, many of whom were elderly or disabled. This type of illegal activity is unfortunately all too common and even more egregious when vulnerable groups are targeted,” stated FBI Acting Assistant Director-in-Charge Curtis. “The FBI will continue to investigate and hold accountable those who exploit their clients by misappropriating their funds for personal gain.” As set forth in the indictment and other public filings, between May 2018 and November 2022, Adam and Daniel Kaplan acted as investment advisors for hundreds of clients. The defendants used their positions of trust to misappropriate millions of dollars from their clients, some of whom were elderly and disabled. The defendants used various schemes to misappropriate the victims’ funds, including overbilling for advisory fees, siphoning money from bank accounts through fraudulent advisory fee charges and through purported “investments” defendants never intended to make. The defendants lied to their clients about the fraudulent charges, forged their clients’ signatures on documents, and made misrepresentations to financial institutions. In total, the defendants misappropriated at least $5 million, using the funds for personal expenses and to purchase luxury goods. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison. If you were a client of Adam Kaplan or Daniel Kaplan and would like to file a complaint, please visit www.iC3.gov . Please reference “Adam Kaplan” or “Daniel Kaplan” in your complaint. The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher Caffarone, Paul Scotti, and Adam Toporovsky are in charge of the prosecution. The Defendants : ADAM KAPLAN Age: 34 Great Neck, New York DANIEL KAPLAN Age: 34 Great Neck, New York E.D.N.Y. Docket No. 23-CR-293 (GRB)


title: Orange County Businessman Pleads Guilty to Fraudulently Obtaining Over $5.2 Million by Bogus Promises of His Company’s Purported IPO

component: USAO - California, Central

body_text: LOS ANGELES – The owner of an Orange County real estate finance business has pleaded guilty to fraudulently obtaining more than $5.2 million by making false promises to an investor that shares of his private company were about to be publicly traded on the Nasdaq stock exchange, the Justice Department announced today. Jacques Poujade, 63, of Irvine, pleaded guilty late Monday afternoon to one count of securities fraud. According to his plea agreement, Poujade is the owner and chief financial officer of Tri-Emerald Financial Group, a Lake Forest-based realty services company that operated as a residential mortgage lender. Tri-Emerald funded loans as a mortgage banker, with the intent to hold the funded loans for immediate resale to financial institutions that purchased the loans for investments. Neither Tri-Emerald nor its securities were ever registered with the United States Securities and Exchange Commission. From February 2015 to May 2020, Poujade sold unregistered securities to a victim investor by telling the victim a series of lies, including about the timing and likelihood of Tri-Emerald’s initial public offering (IPO) and the resulting share price. The victim purchased shares in Tri-Emerald at $10 per share, after Poujade represented they were “securities” under federal law and would exceed the price of $100 per share once the company went public. Poujade falsely promised the victim that Tri-Emerald was a pre-IPO opportunity that would provide high returns when the company soon went public on Nasdaq. In fact, Tri-Emerald had not completed the necessary steps to undertake an IPO, including filling out the required SEC paperwork or formally engaging the investment banks Poujade falsely told the victim he had engaged as underwriters. Poujade admitted that he further lied to the victim by saying one investment bank “was super excited about moving forward” and estimated that Tri-Emerald would “be a billion dollar company in under 16 months,” according to the plea agreement. He also said Tri-Emerald was using the victim’s investment to cover IPO costs when, in fact, Poujade used a substantial portion of the funds for general Tri-Emerald operating expenses and to make lulling payments and litigation settlement payments to previous Tri-Emerald investors. Poujade also used a portion of the funds for personal expenditures in lieu of taking a salary. In total, Poujade fraudulently obtained approximately $5,255,600 from the victim. In his plea agreement, Poujade further admitted to defrauding another victim and that victim’s investment group in July 2016 by convincing them to purchase 30-day promissory notes issued by LendPlus Holdings, another one of Poujade’s companies. These notes purportedly were to be used to increase Tri-Emerald’s warehouse line of credit, which would allow Tri-Emerald to fund a larger volume of mortgages. At the end of the term of the 30-day promissory notes, instead of repaying victim investors, Poujade continuously rolled victim investors’ funds over into the next month. On numerous occasions, Poujade lulled the victims by falsely claiming their money was safe in a reserve account and LendPlus was using their funds to improve Tri-Emerald’s loan production and line of credit. In reality, Poujade used a substantial portion of these funds to make lulling payments to previous Tri-Emerald investors, to pay Tri-Emerald’s operating expenses, and for his own personal use, including paying rent on his residence. Poujade admitted to defrauding these investors out of approximately $915,000. United States District Judge Mark C. Scarsi scheduled an October 30 sentencing hearing, at which time Poujade will face a statutory maximum sentence of 20 years in federal prison. The FBI and the United States Department of Housing and Urban Development Office of Inspector General investigated this matter. Special Assistant United States Attorney Ryan G. Adams of the Santa Ana Branch Office is prosecuting this case.


title: Former Oregon Corrections Nurse Found Guilty of Sexually Assaulting Nine Female Inmates

component: Civil Rights Division

body_text: Note: This release has been updated to reflect the correct number of victims. A federal jury in Portland, Oregon, convicted a former Oregon Department of Corrections employee guilty today of sexually assaulting nine female inmates while serving as a nurse at the Coffee Creek Correctional Facility, Oregon’s only women’s prison. Tony Daniel Klein, 38, of Clackamas County, was convicted of 17 counts of depriving his victims of their constitutional right not to be subjected to cruel and unusual punishment by sexual assault and four counts of perjury. “No woman held inside a jail or prison should be subject to sexual assault at the hands of the officials who work there,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Abuses of power and authority, like this, where the defendant took advantage of his position as a medical professional to satisfy his own sexual desires, will not be tolerated, and justice will be pursued. We thank the survivors of these sexual assaults for having the courage to come forward and tell their story. The Civil Rights Division will continue to vigorously hold prison officials accountable when they abuse their authority by committing sexual assault.” “Tony Klein used his position of authority to prey on women in custody who were in a uniquely vulnerable position. He further led his victims to believe they had no power to resist or report his abuse,” said U.S. Attorney Natalie Wight for the District of Oregon. “This verdict would not have been possible without the courage and resolve of these women and the dedication of our partners at the FBI and Civil Rights Division.” “The FBI and our partners remain committed to investigating violations of civil rights in all circumstances,” said FBI Assistant Director Luis Quesada of the Criminal Investigative Division. “The defendant in this case exploited the trust placed in him as a corrections nurse to sexually assault women in his care, but thanks to the bravery of the women who came forward, we are able to pursue justice and prevent future victimization.” According to court documents, from 2010 until January 2018, Klein served as a nurse at the Coffee Creek Correctional Facility in Wilsonville, Oregon. In his position, Klein interacted with female inmates who either sought medical treatment or worked as orderlies in the prison’s medical unit. Aided by his access to the women and his position of power as a corrections employee, Klein sexually assaulted or engaged in nonconsensual sexual conduct with many female inmates entrusted to his care. By virtue of his position as a medical provider, Klein was often alone with his victims and assaulted many before, during, or after medical treatment. For women who worked in the medical unit, Klein manufactured reasons to get them alone in secluded areas such as medical rooms, janitor’s closets or behind privacy curtains. Klein made it clear to his victims that he was in a position of power over them, and they would not be believed if they tried reporting his abuse. Fearing punishment if they fought back against or reported his conduct, most of Klein’s victims submitted to his unwanted advances or endured his assaults. Klein faces a maximum sentence of life in prison. Sentencing is set for Oct. 17 before U.S. District Court Judge Michael H. Simon. This FBI Portland Field Office investigated the case. Assistant U.S. Attorney Gavin W. Bruce for the District of Oregon and Trial Attorney Cameron A. Bell of the Civil Rights Division’s Criminal Section prosecuted the case, with assistance from Assistant U.S. Attorney Hannah Horsley for the District of Oregon.


title: Seven Charged In International Fraud Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: 50 Elderly Victims Lost $11 million GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten announced today that seven people were charged in a federal grand jury indictment, unsealed this week, accused of participating in a conspiracy that stole $11 million from 50 victims in West Michigan and around the country. Most of the victims were elderly. “Elder fraud schemes prey on some of our nation’s most vulnerable citizens,” said U.S. Attorney Totten . “It’s critical to raise awareness of elder fraud to help protect our older loved ones from these types of crimes. My office is committed to fighting all types of elder abuse in our community.” According to the indictment, victims of the conspiracy received a pop-up or other message on their computers warning that a virus had infected their devices. The messages urged the victims to call a number to get help. When the victims called the number provided, they got a response from someone claiming to work for a tech company, such Microsoft or Apple. In truth, they were scammers located in India, who scared the victims into giving money to the conspiracy with a variety of different ruses. In one version of the scam, victims were told that their bank accounts had been compromised and they needed to withdraw all of their cash and give it to fake “federal agents” for safekeeping. In another version, victims were told that their computers had been infected by a virus and they needed to pay for technical support. In a third version, victims were told that they had been identified in a criminal investigation and needed to turn over money to clear their names. Regardless of which ruse was used, the end result was the same: victims were convinced to give $11 million to the scammers. Victims did this during in-person meetings with fake “federal agents,” by mailing boxes of cash to addresses provided by the scammers, by wire transfers to bank accounts controlled by the scammers, or through gift cards they purchased at the direction of the scammers. According to the indictment, the following defendants were the U.S.-based members of the conspiracy who collected fraud proceeds from victims on behalf of the conspiracy: Name Age Location Pragneshbhai M. Patel 51 Amityville, New York Everette Jhmal Thibou 30 Tampa, Florida Jayesh J. Panchal 54 Hicksville, New York Vijaya C. Shetty 52 Jackson Heights, New York Jmyla Elaine Sha’taria White 28 Thonotosassa, Florida Jorrel Tyler Jackson 31 Riverview, Florida Mckhaela Katelynn McNamara 27 Flint, MI The indictment alleges that Panchal and McNamara made six trips to meet with a victim in Lake County, Michigan, to collect $398,000 in fraud proceeds from her. The victim had been convinced that her bank accounts had been compromised and that she was giving cash to “federal agents” for safekeeping. It is alleged that Thibou helped arranged the meetings with the Lake County victim. The indictment alleges that others around the country similarly fell victim to the scam. Earlier this year, two alleged members of the conspiracy located in India were arrested by the Delhi Police Special Cell. FBI’s Legal Attaché New Delhi provided investigative assistance to the Indian authorities. “Today’s indictment reflects the commitment of the FBI and our partners to protect older Americans from financial scams,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office . “These defendants allegedly defrauded victims by preying on their vulnerabilities. If you believe that you or someone you know may be a victim of elder fraud, submit a tip to the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311).” According to the FBI’s 2022 Elder Fraud Report , 88,262 people over 60 were victimized in 2022, resulting in the loss of $3.1 billion, an 84% increase from 2021. Tech support and customer service schemes were the most common types of fraud reported. Elder Fraud Prevention Tips Recognize scam attempts and end all communication with the perpetrator. Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams. Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one. Be cautious of unsolicited phone calls, mailings, and door-to-door services offers. Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses. Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls. Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up. Be careful what you download. Never open an email attachment from someone you don't know and be wary of email attachments forwarded to you. Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts and monitor your accounts and personal information for suspicious activity. This investigation was conducted jointly by FBI Detroit, Grand Rapids Office, Homeland Security Investigations, New Orleans, Louisiana, and the Lake County, Michigan, Sheriff’s Office. Additional investigative assistance was provided by the Delhi Police Special Cell, FBI’s Legal Attaché New Delhi, the U.S. Attorney’s Office for the Eastern District of Louisiana, the New Holland, Pennsylvania, Police Department, the Tennessee Highway Patrol, DEA Chattanooga, FBI New York, and FBI Tampa. The prosecution is being handled by Assistant United States Attorney Clay Stiffler. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law. ###


title: Sioux City, Iowa Man Sentenced to 15 Years for Role in Conspiracy to Possess Stolen Firearms

component: USAO - Iowa, Northern

body_text: Ian Bigler, age 34, from Sioux City, Iowa, received the prison term after a pleading guilty to one count of conspiracy to possess stolen firearms and one count of possession of a firearm by a felon and drug user. Evidence in the case revealed that on October 1, 2021, Bigler participated in a home burglary where he and a coconspirator stole 10 guns. The burglary was planned in advance, and Bigler used diversions to insure the home was empty when the burglary was committed. Afterward, Bigler took several steps to conceal the conspiracy. On October 11, 2021, Bigler, fled from police in a 2008 white Dodge Ram pickup truck that contained evidence of the burglary (including a pistol which had been stolen during the burglary). On October 15, 2021, Bigler equipped himself with a bulletproof vest and two firearms (including a Pistol, which had been stolen during the burglary) and a shortened shotgun, secreted himself from law enforcement in a home in North Sioux City, South Dakota, and held another person against his/her will. Additionally, at various times Bigler researched the internet for ways to conceal the conspiracy. The topics included: “how does the FBI track you,” “how to hide,” “how to beat drones,” and “us marshals wanted list.” Additionally, Bigler was also held accountable for a November 15, 2020, incident where he brandished a firearm in an apparent attempt to rob or extort a local business. Bigler has a lengthy criminal history. He was previously convicted of several felonies: burglaries, willful injury, and misdemeanor assault while displaying a firearm, amongst other crimes. Bigler was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 180 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Bigler is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was investigated by LeMars, Iowa Police Department, Sioux City, Iowa Police Department, and ATF, and was prosecuted by Assistant United States Attorney Forde Fairchild. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-4022. Follow us on Twitter @USAO_NDIA.


title: Mississippi Men Sentenced for Hunting Violations

component: USAO - Mississippi, Northern

body_text: Oxford, MS – Two North Mississippi men were sentenced today to one-year of probation and ordered to pay a total of $30,000 in fines and restitution for illegally killing a white-tailed deer in Tennessee and transporting the deer across state lines to Mississippi. According to court documents, Christopher Lee Jones, 42, of Hernando, Mississippi, and Heath Thomas Harris, 42, of Senatobia, Mississippi, each plead guilty to one count of violating the Lacey Act for killing a white-tailed deer in violation of state law and transporting it across state lines. In December 2019, Jones and Harris killed a white-tailed deer on property located west of Tchulahoma Road and north of Jackson Pit Road in Memphis, Tennessee, violating various Tennessee laws in the process, including hunting in Tennessee without a license. After killing the deer illegally in Tennessee, Jones and Harris transported the deer into Mississippi, in violation of the Lacey Act. Each defendant was ordered to pay a fine in the amount of $1,000, restitution to the Tennessee Wildlife Resources Agency in the amount of $9,185 and fines payable to the Lacey Act Rewards Account in the amount of $4,875, as well as forfeit the antlers to the U.S. Fish and Wildlife Service. Additionally, each defendant was placed on probation for a period of one year, during which time they will be prohibited from hunting anywhere in the world as a condition of their probation. U.S. Fish & Wildlife Service Office of Law Enforcement Special Agent in Charge Stephen Clark stated, “The U.S. Fish and Wildlife Service, Office of Law Enforcement is committed to conducting criminal investigations with the Mississippi Department of Wildlife, Fisheries and Parks and the Tennessee Wildlife Resources Agency to conserve, protect, and enhance fish, wildlife, plants and their habitats. The Office of Law Enforcement takes violations of the Lacey Act seriously. This multi-year investigation involving the two defendants responsible for the unlawful harvest and subsequent transportation in interstate commerce of a white-tailed deer from Tennessee to Mississippi is no exception. We will continue to work closely with our state partners to conduct these important joint investigations.” This case was investigated by the U.S. Fish and Wildlife Service, the Tennessee Wildlife Resources Agency, and the Mississippi Department of Wildlife, Fisheries and Parks. The case was prosecuted by AUSA Robert Mims. The U.S. Fish and Wildlife Service encourages members of the public to report allegations of wildlife crimes to the Service’s Office of Law Enforcement via the Wildlife Crime Tips page at https://www.fws.gov/wildlife-crime-tips or via phone at 1-844-FWS-TIPS (1-844-397-8477).


title: Middletown Man Admits Robbing 3 Supermarket Banks

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GINO RIZZO, 29, of Middletown, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to bank robbery. According to court documents and statements made in court, using notes demanding cash, Rizzo robbed People’s United Bank branches located in Stop & Shop supermarkets in Glastonbury on July 16, 2022, in Newington on July 18, 2022, and in West Hartford July 20, 2022. Rizzo was arrested on July 21, 2022. On April 11, 2023, while on pre-trial release, Rizzo disconnected his GPS electronic monitoring bracelet and absconded from his court-mandated rehabilitation center. He has been detained since his re-arrest on May 22, 2023. Judge Meyer scheduled sentencing for October 17, at which time Rizzo faces a maximum term of imprisonment of 20 years. This matter has been investigated by the Federal Bureau of Investigation and the Middletown, Glastonbury, Newington, and West Hartford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Stephanie T. Levick and Robert S. Dearington.


title: Tacoma man arrested for production of child sexual abuse material

component: USAO - Washington, Western

body_text: Tacoma – A 27-year-old Tacoma resident was charged by federal criminal complaint today with production of child pornography, announced Acting U.S. Attorney Tessa M. Gorman. Demitri Super will appear in U.S. District Court in Tacoma today. He is being detained at the Federal Detention Center at SeaTac pending further hearings. According to records filed in the case, a foreign law enforcement organization contacted the Homeland Security Investigations (HSI) Computer Crimes Center about a Skype video showing the rape of an infant. HSI quickly worked to identify the person in the video and agents interviewed and arrested Super today. The victim child has been identified and the parents have been notified. Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison. The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The case is being investigated by Homeland Security Investigation (HSI) and the case is being prosecuted by Assistant United States Attorney Matthew Hampton. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Sioux City Man Who Illegally Possessed a Gun Sentenced to More Than 8 Years in Federal Prison

body_text: A man who called himself “Capone” was sentenced on July 21, 2023, to over 8 years in federal prison. Randy Hall, age 39, from Sioux City, Iowa, received the prison term after a March 13, 2023, guilty plea to possession of a firearm by a felon and an unlawful drug user. Evidence in the case showed when Hall was arrested on outstanding state warrants, he was in possession of a loaded 9mm semiautomatic pistol. Hall had secreted the weapon on his person and then tried to hide it in the police cruiser that was being used to transport him to jail. The firearm was discovered. Hall has a lengthy criminal history including: assault on a police officer, conspiracy to distribute methamphetamine, escape, theft in the 1st degree, operating a motor vehicle while intoxicated, and a pervious felon in possession of a firearm among other crimes. Hall was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 97 months’ and 22 days imprisonment (which was a sentence of 108 months adjusted for time served). He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Hall is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was investigated by the Sioux City, Iowa Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-04089. Follow us on Twitter @USAO_NDIA


title: Clay County Woman Pleads Guilty To Fraud Charge In  Online Romance Scheme

component: USAO - Florida, Middle

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Iona K Coates (67, Orange Park) has pleaded guilty to conspiracy to commit wire fraud. Coates faces a maximum penalty of 20 years in federal prison and payment of restitution to the victims in the case. According to court documents, in 2020, Coates met two individuals online through a dating website. She subsequently provided both individuals with her bank account information and began receiving money into her account. Coates then facilitated the movement of the money from her account to unknown individuals. In December 2020, the United States Secret Service (USSS) met with Coates and explained she was acting as a “money mule” in an online romance scheme. As part of the scheme, criminals acting as fake suitors on dating websites developed relationships and convinced victims to send money to Coates’s bank account. Coates, in turn, sent the money to criminals. The USSS met with Coates and advised her to cease participation in the scheme, as the criminals were using her bank account to facilitate stealing money from the victims. After the meeting and advice for her to stop, Coates continued to facilitate the criminal activity. Between December 2020 through September 2021, she received $229,376.26 into her bank accounts from victims targeted in the online romance scheme. This case was investigated by the United States Secret Service – Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.


title: South Carolina Man Charged with Sex Trafficking of Four Victims, including a Minor

body_text: A federal grand jury in Florence, South Carolina, returned an indictment charging a South Carolina man with three counts of sex trafficking by force, fraud or coercion, one count of sex trafficking of a minor, two counts of interstate travel in aid of racketeering and one count of obstructing a sex trafficking investigation. According to the indictment, between August 2019 and August 2020, Aaron T. Simmons, 26, of Greenville, used force, threats of force and coercion to compel three adult women to engage in commercial sex. The indictment also charges Simmons with sex trafficking of a minor victim. Simmons will make his initial court appearance before a U.S. Magistrate Judge in the District of South Carolina. It is initially scheduled for July 28. If convicted of sex trafficking by force, fraud, or coercion, Simmons faces a minimum penalty of 15 years in prison and up to life in prison. If convicted of sex trafficking of a minor, Simmons faces a minimum penalty of 10 years in prison and up to life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Adair F. Boroughs for the District of South Carolina and Special Agent in Charge Steven J. Jensen of the FBI Columbia Field Office made the announcement. The Greenville Police Department and the FBI Greenville Field Office investigated the case. Assistant U.S. Attorney Carrie Fisher Sherard for the District of South Carolina and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case. The FBI is asking anyone with information about Aaron Simmons to contact the FBI Columbia Field Office at (803) 551-4200. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at (888) 373-7888. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Indictment


title: Sioux City Man Sentenced to More Than 8 Years Federal Prison for Illegal Possession of a Firearm.

body_text: A man who followed a couple into two separate businesses and a Sioux City home, all while confronting them with a gun, was sentenced on July 21, 2023 to more than 8 years in federal prison. Rico Willis, age 45, from Sioux City, Iowa, received the prison term after a pleading guilty to possession of a firearm by a felon, unlawful drug user and domestic abuse misdemeanant on March 2, 2023. Evidence in the case showed that on August 29, 2022, Willis followed two individuals into two separate businesses, then to a Sioux City home, all while confronting them with a gun. Outside of the home, Willis struck one the individuals in the head with the gun, causing it to discharge, and knocking the individual to the ground. Willis then fled the scene. A concerned citizen recorded the incident and provided the recording to law enforcement. Willis has a long criminal history including convictions for: felon in possession of a firearm, unlawful use of a weapon, 2 nd degree robbery, harassment, domestic assault, and numerous drug crimes. Willis was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 106 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Willis is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was investigated by Sioux City, Iowa Police Department, and was prosecuted by Assistant United States Attorney Forde Fairchild. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-4092. Follow us on Twitter @USAO_NDIA.


title: Church Rock Man Arrested for Firearms Offenses in Indian Country

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Elijah I. Touchine, 23, of Church Rock, and an enrolled member of the Navajo Nation, made an initial appearance in federal court on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm and use of a firearm during a crime of violence. According to the criminal complaint, early in the morning on July 22, the Navajo Police Department (NPD) received a report that a man identified as Touchine was walking around the area near his residence shooting a gun and threatening to hurt someone. Officers from the NPD and New Mexico State Police responded to the area and came under fire from an unknown direction and an unknown assailant and took tactical action to protect themselves and each other from the incoming fire. Officers pursued the shooter on foot up into a canyon, but due to the dark conditions, they were unable to identify where the shooter was firing from. After about twelve hours, officers discontinued the search for the shooter. The following day, July 22, the FBI received information about Touchine’s whereabouts and located him at a local gun store in Gallup, NM with the assistance of the Gallup Police Department. Touchine was taken into custody without incident and it was determined that he had forced, through threats of violence, his grandmother to purchase a gun for him. When asked why he was purchasing a gun, Touchine replied “I don’t know, shoot up any cop I see.” A black handgun was located in the vehicle Touchine arrived at the location in. An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Touchine faces a maximum sentence of up to life in prison. This case was investigated by the Gallup Resident Agency of the Federal Bureau Investigation with assistance from the Navajo Police Department, New Mexico State Police and Gallup Police Department. Assistant United States Attorney Nicholas Marshall is prosecuting the case. # # # 23-159


title: New Bedford Man Sentenced for Role in Fentanyl Trafficking Organization

component: USAO - Massachusetts

body_text: BOSTON – A New Bedford man was sentenced today in federal court in Boston for his role in a drug trafficking organization (DTO) operating in Southeastern Massachusetts and Rhode Island. Jason Cruz, 42, was sentenced by U.S. District Court Judge Allison D. Burroughs to 16 months in prison and three years of supervised release. In May 2023, Cruz pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. Between approximately April 2022 and approximately June 2022, Cruz purchased fentanyl from the DTO that he then redistributed to others. Intercepted communications depicted Cruz discussing purchasing fentanyl from the DTO. In addition, surveillance footage showed other members of the DTO visiting Cruz’s residence for brief periods of times, often times consistent with illegal drug trafficking. Acting United States Attorney Joshua S. Levy; Brian D. Boyle, 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. Special 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 prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


component: USAO - Oregon

body_text: PORTLAND, Ore.—A federal jury in Portland found a former Oregon Department of Corrections employee guilty today of sexually assaulting nine female inmates while serving as a nurse at the Coffee Creek Correctional Facility, Oregon’s only women’s prison. Tony Daniel Klein, 38, of Clackamas County, Oregon, was convicted of 17 counts of depriving his victims of their constitutional right not to be subjected to cruel and unusual punishment by sexual assault and four counts of perjury. “Tony Klein used his position of authority to prey on women in custody who were in a uniquely vulnerable position. He further led his victims to believe they had no power to resist or report his abuse,” said Natalie Wight, U.S. Attorney for the District of Oregon. “This verdict would not have been possible without the courage and resolve of these women and the dedication of our partners at the FBI and Civil Rights Division.” “This defendant is being held accountable for sexually assaulting female inmates under his care, custody and control,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Abuses of power and authority, like this, where the defendant took advantage of his position as a medical professional to satisfy his own sexual desires, will not be tolerated, and justice will be pursued. We thank the survivors of these sexual assaults for having the courage to come forward and tell their story. The Civil Rights Division will continue to vigorously hold accountable those who abuse their authority by committing sexual assault.” “As a state prison nurse, Mr. Klein used his position to intimidate and sexually assault multiple women. His heinous actions were only brought to light by a small group of courageous women who came forward, even despite their precarious circumstances of being incarcerated. Their willingness to report their victimization undoubtedly saved others from Mr. Klein’s predatory actions,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “This verdict demonstrates the commitment by the FBI and our partners at the U.S. Attorney’s Office to hold accountable public officials, who not only violate the public trust, but even go so far as to commit monstrous actions such as those proven at trial in this case.” According to court documents, from 2010 until January 2018, Klein served as a nurse at the Coffee Creek Correctional Facility in Wilsonville, Oregon. In his position, Klein interacted with female inmates who either sought medical treatment or worked as orderlies in the prison’s medical unit. Aided by his access to the women and his position of power as a corrections employee, Klein sexually assaulted or engaged in nonconsensual sexual conduct with many female inmates entrusted to his care. By virtue of his position as a medical provider, Klein was often alone with his victims and assaulted many before, during, or after medical treatment. For women who worked in the medical unit, Klein manufactured reasons to get them alone in secluded areas such as medical rooms, janitor’s closets, or behind privacy curtains. Klein made it clear to his victims that he was in a position of power over them, and they would not be believed if they tried reporting his abuse. Fearing punishment if they fought back against or reported his conduct, most of Klein’s victims submitted to his unwanted advances or endured his assaults. On March 8, 2022, a federal grand jury in Portland returned an indictment charging Klein with depriving his victims of their constitutional right not to be subjected to cruel and unusual punishment by sexual assault and perjury. Following announcement of the jury’s verdict, Klein was remanded into the custody of U.S. Marshals Service pending his sentencing on October 17, 2023, before U.S. District Court Judge Michael H. Simon. Klein faces a maximum sentence of life in prison. This case was investigated by the FBI Portland Field Office. It was prosecuted by Cameron A. Bell, Trial Attorney for the Civil Rights Division’s Criminal Section, and Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon. Assistant U.S. Attorney Hannah Horsley assisted the trial team.


title: Colorado Man Sentenced To Prison For “We Build The Wall” Online Fundraising Fraud Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that TIMOTHY SHEA was sentenced today by U.S. District Judge Analisa Torres to 63 months in prison for his role in carrying out a scheme to defraud hundreds of thousands of donors in connection with an online crowdfunding campaign known as “We Build The Wall” by soliciting donations using false statements and then stealing the resulting donations, as well as laundering the proceeds of the fraud scheme and attempting to obstruct the federal criminal investigation of the scheme. U.S. Attorney Damian Williams said: “Timothy Shea abused the trust of donors to ‘We Build the Wall,’ stole hundreds of thousands of dollars in donations to line his own pockets, and attempted to obstruct the federal investigation of his criminal conduct. The defendant has now been held accountable and faces prison time for his crimes.” According to court filings and evidence introduced during court proceedings: Starting in approximately December 2018, TIMOTHY SHEA, his co-defendants BRIAN KOLFAGE and ANDREW BADOLATO, and others orchestrated a scheme to defraud hundreds of thousands of donors, including donors in the Southern District of New York, in connection with an online crowdfunding campaign ultimately known as “We Build The Wall” that raised more than $25,000,000 to build a wall along the southern border of the United States. In particular, to induce donors to donate to the campaign, KOLFAGE repeatedly and falsely assured the public that he would “not take a penny in salary or compensation” and that “100% of the funds raised…will be used in the execution of our mission and purpose.” Those representations were lies. In truth, KOLFAGE, BADOLATO, SHEA, and others received hundreds of thousands of dollars in donor funds from We Build the Wall, which they each used in a manner inconsistent with the organization’s public representations. For example, KOLFAGE covertly took for his personal use more than $350,000 in funds that donors had given to We Build the Wall. To conceal the payments to KOLFAGE from We Build the Wall, KOLFAGE, BADOLATO, SHEA, and others devised a scheme to route those payments through entities and bank accounts that they controlled. They took various steps to obscure or conceal these payments, including by using fake invoices and sham contracts — conduct for which SHEA was convicted at trial of obstruction of justice. * * * SHEA, 52, of Castle Rock, Colorado, was convicted after trial of conspiracy to commit wire fraud, conspiracy to commit money laundering, and obstruction of justice. In addition to the prison term, SHEA was sentenced to three years of supervised release and ordered to forfeit $1,801,707 and pay restitution in the amount of $1,801,707. KOLFAGE, 41, of Miramar Beach, Florida, and BADOLATO, 58, of Cocoa, Florida, each pled guilty to one count of conspiracy to commit wire fraud. KOLFAGE also pled guilty to tax and wire fraud charges originally filed by the U.S. Attorney’s Office for the Northern District of Florida. KOLFAGE was sentenced to 51 months in prison, and BADOLATO was sentenced to 36 months in prison. Mr. Williams praised the outstanding investigative work of the U.S. Postal Inspection Service and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York. The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alison G. Moe, Nicolas Roos, Robert B. Sobelman, and Derek Wikstrom are in charge of the prosecution, with the assistance of Paralegal Specialists Christopher de Grandpre and Andrea Gieseman.


title: Texas Woman Pleads Guilty to Drug Trafficking Charge, Faces up to Life in Prison

component: USAO - Texas, Western

body_text: ALPINE, Texas – A Presidio County woman pleaded guilty today in a federal court in Alpine to one count of possession with intent to distribute methamphetamine and fentanyl. According to court documents, Cherakee Lee Perez, 33, provided a negative declaration during a Customs and Border Patrol vehicle inspection at the Presidio Port of Entry from Mexico into the U.S. A narcotic detection canine discovered more than three dozen packages hidden in the vehicle. 29 of packages contained approximately 4.5 kilograms of methamphetamine, while the other 13 contained seven kilograms of fentanyl. Perez is scheduled to be sentenced on Oct. 23 and faces a penalty of 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Francisco B. Burrola of the Homeland Security Investigations El Paso Division made the announcement. HSI is investigating the case. Assistant U.S. Attorney Scott Greenbaum is prosecuting the case. ###


title: Woman Pleads Guilty in Visa Fraud and Immigrant Smuggling Scheme

component: Criminal Division

body_text: A Las Vegas woman pleaded guilty today in the Eastern District of New York to money laundering conspiracy and conspiracy to unlawfully bring Chinese nationals into the United States for financial gain. According to court documents, Haiyan Liao, 46, a naturalized U.S. citizen and native of China, engaged in a scheme with others to assist noncitizens from China in entering the United States by fraudulently obtaining visitor visas. Liao and her co-conspirators submitted applications containing false statements to the U.S. Consulate in Guangzhou, China. For the noncitizens whose applications were approved, Liao facilitated their travel to the United States and accompanied them on commercial flights to Queens and Brooklyn, New York. Four of the noncitizens were unaccompanied minors. The noncitizens and their families paid thousands of dollars to Liao and others to get to the United States. As a result of this scheme, Liao reaped at least $98,673.72 in illicit proceeds through wire transmissions from China to the United States. “The Criminal Division is committed to prosecuting human smugglers who undermine the rule of law by trying to circumvent our lawful immigration system,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As Liao’s conviction demonstrates, we will continue to hold accountable people who take advantage of vulnerable populations for personal greed.” “Liao was paid thousands of dollars to help lie to the federal government to bring individuals, including unaccompanied minors, into the United States for her own selfish gain,” said U.S. Attorney Breon Peace for the Eastern District of New York. “This office stands committed to upholding the rule of law and protecting the integrity of our immigration process.” “The Diplomatic Security Service’s global presence provides it with the expertise necessary to dismantle transnational human smuggling networks,” said Deputy Assistant Director of Investigations Robert Kelty of the U.S. Department of State’s Diplomatic Security Service (DSS). “Today’s guilty plea demonstrates DSS’ commitment to protecting vulnerable populations, stemming the tide of human smuggling and targeting those who abuse our nation’s visa system.” Liao pleaded guilty to conspiracy to unlawfully bring aliens into the United States for financial gain, which carries a maximum penalty of five years in prison, and money laundering conspiracy, which carries a maximum penalty of 20 years in prison. She is scheduled to be sentenced on Dec. 8. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The DSS Criminal Fraud Investigations Branch investigated the case. Acting Deputy Chief Rami Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Nomi Berenson for the Eastern District of New York are prosecuting the case.


title: Alaska Man Sentenced to 18 Months for Hate Crimes, Drug Trafficking

body_text: ANCORAGE, Alaska – An Anchorage man was sentenced today to 18 months in prison for two acts of hate-motivated property damage and a drug trafficking offense. According to court documents, in May 2021, Luke Foster, 28, placed stickers with a swastika and the text “WE ARE EVERYWHERE” at eight locations around Anchorage, including the Alaska Jewish Museum, the University of Alaska Anchorage campus and a site associated with the LGBTQ+ community. In September 2021, Foster returned to the Alaska Jewish Museum, where he placed another sticker and carved a swastika into the door. Foster was convicted of two counts of damaging religious property in connection to this conduct. During the investigation into the vandalism, investigators also discovered that Foster was using social media to traffic psilocybin mushrooms, a Schedule I controlled substance under the Controlled Substances Act. Foster sold psilocybin to an undercover agent and boasted about his large collection of weapons and his intent to use them to protect his illegal drugs from law enforcement, if necessary. Federal agents executed a search warrant on Foster’s residence and recovered psilocybin mushrooms, associated drug production items, multiple firearms, firearm ammunition, several thousand dollars in cash, and Nazi-inspired imagery, including a box of swastika stickers. Foster was convicted of an additional count of possession of controlled substances with intent to distribute for this conduct. “Mr. Foster’s hateful acts of pro-Nazi vandalism across our city have caused significant harm to multiple communities and his trafficking of drugs put the people of Alaska in danger,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Anti-Semitic crimes and those targeting the LGBTQ+ community have no place here. Our U.S. Attorney’s Office will continue to work with our law enforcement partners to identify, investigate and prosecute crimes that target our communities to instill fear and distrust.” “Mr. Foster’s hate-fueled crimes were meant to threaten and intimidate entire communities, having a wide-ranging impact beyond that of property damage,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “This is why civil rights investigations are among the FBI’s highest priorities. Together with our law enforcement partners, we stand ready to investigate and hold accountable those who commit civil rights violations against any person or group, and ensure justice for victims of bias-motivated crimes.” The FBI’s Anchorage Field Office, with support from the Anchorage Police Department and Drug Enforcement Administration, investigated the case. Assistant U.S. Attorney James Klugman prosecuted the case. ###


title: Tuscaloosa Man Convicted of Illegally Possessing 10 rounds of Ammunition

body_text: TUSCALOOSA, Ala. – A federal jury today found a convicted felon guilty of illegally possessing ammunition, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson. The jury returned its guilty verdict against Deandrea Darnelle Young , 34, of Tuscaloosa, after two days of testimony before Chief U.S. District Court Judge L. Scott Coogler. Young was convicted of being a felon in possession of ammunition. “It is not only a federal crime for a prohibited person to possess a firearm, but also to possess ammunition,” U.S. Attorney Escalona said. “Removing firearms and ammunition from prohibited persons is an integral part of our efforts to fight violent crime and to keep our families and communities safe. Alongside our law enforcement partners, we will continue to hold these individuals accountable.” “Many people know that convicted felons are prohibited from possessing firearms, but a lesser-known fact is that they are also prohibited from possessing ammunition,” SAC Watson said. “We at ATF work tirelessly to keep our communities safe from the individuals who endanger our neighborhoods. We will continue to work with our state, local, and federal partners to protect the public from violent criminals.” According to evidence presented at trial, on February 27, 2022, a Tuscaloosa Police Department officer conducted a traffic stop on Young. The officer made contact with Young and asked for his driver’s license and insurance. Young ignored the officer’s repeated requests for information and fled from the officer. The officer chased Young and found the abandoned vehicle in an apartment complex. During the search of the abandoned vehicle officers found 10 rounds of Igman 9mm ammunition underneath clothing belonging to Young. The officers did not find a firearm. Young is prohibited from having ammunition because of multiple prior felony convictions. Young was convicted on January 10, 2013, in the U.S. District Court for the Northern District of Alabama, of Felon in Possession of a Firearm in case number 7:21-cr-00461-LSC-GMB; and was convicted on August 15, 2012, in the Circuit Court of Tuscaloosa County, Alabama, of two counts of Unlawful Possession of Marijuana, First Degree, in CC-2012-2072 and CC-2012-1389. On the same date, he was convicted of Unlawful Possession of a Controlled Substance in CC-2012-2073. On November 9, 2011, in the Circuit Court of Tuscaloosa County, Alabama, Young was convicted of Burglary, First Degree, in CC-2008-1527, and of Unlawful Possession of Marijuana, First Degree, in CC-2011-2381. The maximum penalty for being a felon in possession of an ammunition is 10 years in prison. The ATF investigated the case along with the Tuscaloosa Police Department. Assistant U.S. Attorneys Brittney L. Plyler and Catherine Crosby are prosecuting the case.


title: Defendant Pleads Guilty to For-Profit Visa Fraud and Immigrant Smuggling Scheme

body_text: This afternoon, at the federal courthouse in Brooklyn, Haiyan Liao pleaded guilty to visa fraud and money laundering charges for her role in a multi-year scheme to illegally bring Chinese nationals into the United States for financial gain. Liao was charged in January 2021. Today’s proceeding was held before United States Magistrate Judge Cheryl L. Pollak. U.S. Attorney Breon Peace of the Eastern District of New York; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and Principal Deputy Assistant Secretary and Acting Deputy Assistant Director of Investigations Gregory Batman of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement. “Liao was paid thousands of dollars to help lie to the federal government to bring individuals, including unaccompanied minors, into the United States for her own selfish gain,” stated United States Attorney Peace. “This Office stands committed to upholding the rule of law and protecting the integrity of our immigration process.” “The Criminal Division is committed to prosecuting human smugglers who undermine the rule of law by trying to circumvent our lawful immigration system,” stated Assistant Attorney General Polite. “As Liao’s conviction demonstrates, we will continue to hold accountable people who take advantage of vulnerable populations for personal greed.” “The Diplomatic Security Service’s global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts, assisting both in their efforts to stop human trafficking,” stated DSS Acting Deputy Assistant Director of Investigations Batman. “Today’s guilty plea demonstrates how DSS’ placement around the world can stem the tide of human trafficking and target the criminals who prey on these victims.” According to court documents, Liao, a naturalized U.S. citizen and native of China, engaged in a scheme with others to assist noncitizens from China to illegally enter the United States. Liao fraudulently obtained visitor visas for those noncitizens by submitting applications containing false statements to the U.S. Consulate in Guangzhou, China. For the noncitizens whose applications were approved – including four minors – Liao facilitated their travel to the United States, including accompanying them on commercial flights to John F. Kennedy International Airport. The noncitizens and their families paid thousands of dollars to get to the United States. As a result of this scheme, Liao reaped at least $98,673.72 in illicit proceeds through wire transmissions from China to the United States. Liao pleaded guilty to conspiracy to unlawfully bring unauthorized immigrants into the United States for financial gain, which carries a maximum sentence of five years imprisonment and money laundering conspiracy, which carries a maximum sentence of 20 years imprisonment. The DSS Criminal Fraud Investigations Unit Branch investigated the case. Assistant U.S. Attorney Nomi Berenson for the Eastern District of New York and Rami Badawy, Acting Deputy Chief of the Justice Department’s Human Rights and Special Prosecutions Section are prosecuting the case. The Defendant : HAIYAN LIAO Age: 46 Las Vegas, Nevada E.D.N.Y. Docket No. 20-CR-500 (DG)


title: New Mexico State Police Officer Arrested for Possession and Transportation of Child Pornography

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Sammy Allen Clouthier, 44, of Carlsbad, made an initial appearance in federal court on a criminal complaint charging him with possession of child pornography and transportation of child pornography. According to the criminal complaint, on April 18, 2023, the FBI was made aware of a tip provided to the National Center for Missing and Exploited Children (NCMEC) on Dec. 29, 2022, by cloud service provider Synchronoss Technologies, Inc. Synchronoss provides content storage for the wireless communication service provider Verizon. Synchronoss reported images depicting apparent child sexual abuse material (CSAM) were uploaded to an account associated with Clouthier’s phone number and device. Follow-up investigation revealed that Clouthier, a sergeant in the New Mexico State Police, downloaded, possessed, and transported child pornography using his cellular devices. A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Clothier faces a mandatory minimum of 5 years up to 20 years in prison. This case was investigated by the Albuquerque Division Child Exploitation and Human Trafficking Task Force of the Federal Bureau Investigation. Assistant United States Attorney Eliot Neal is prosecuting the case. # # # 23-160


title: United States Returns Manuscript Signed by Conquistador Hernando Cortés in 1527 to Mexico's National Archives

body_text: BOSTON – A nearly 500-year-old manuscript signed by Conquistador Hernando Cortés in 1527 has been returned to the Archivo General de la Nación de México – Mexico’s national archives located in Mexico City. On July 19, 2023, the United States Attorney’s Office for the District of Massachusetts, along with representatives from the Federal Bureau of Investigation, participated in a formal repatriation ceremony at Mexico’s national archives, where the manuscript is believed to have been unlawfully removed from sometime before 1993. In November 2022 , the U.S. Attorney’s Office filed a civil forfeiture action against the manuscript to ensure its lawful return. It is a violation of federal law to transport or receive stolen goods valued at more than $5,000 that have traveled in foreign or interstate commerce. “After missing for decades, thanks to incredible international collaboration and persistence the Cortés manuscript is finally where it belongs back in Mexico, where it will remain a treasured part of Mexico’s history and heritage,” said Acting U.S. Attorney Joshua S. Levy. “I want to commend the asset recovery prosecutors in the U.S. attorney’s office whose hard work and dedication led to the return of this priceless and historically important artifact. We were honored to have assisted in this effort.” The manuscript is a payment order signed by Cortés on April 27, 1527 authorizing the purchase of rose sugar for the pharmacy in exchange 12 gold pesos. It is believed to be one of several documents unlawfully removed from a collection of documents concerning a Spanish expedition to Central America in 1527 that is housed in Mexico’s national archives. According to the civil complaint, in early 2022, an individual consigned the Cortés manuscript for online auction at a Massachusetts auction house. Mexican authorities alerted federal authorities in the United States that the manuscript being auctioned appeared to have been stolen. In turn, the auction house removed the manuscript from the upcoming auction and the manuscript was recovered. The United States Attorney’s Office obtained a final order of forfeiture on February 27, 2023, and thereafter the Department of Justice authorized the manuscript’s return to Mexico. “We are incredibly honored to be able to assist in the return of this national treasure to the people of Mexico. This manuscript, which is nearly five centuries old, preserves an important part of Mexico’s history, and reflects the FBI’s ongoing commitment to protect cultural heritage, not only in the United States but around the world,” said Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “The recovery of this priceless artifact is a direct result of our close and ongoing collaboration with the government of Mexico, and we are very thankful for their partnership.” Anyone with information on stolen art and cultural property are encouraged to contact the FBI at 1-800-CALL FBI (1-800-225-5324). Tips may also be submitted online at https://tips.fbi.gov/. Acting U.S. Attorney Levy and FBI Acting SAC DiMenna made the announcement. The civil forfeiture action was prosecuted by Assistant U.S. Attorney Carol E. Head, Chief of the Asset Recovery Unit. The Justice Department’s Office of International Affairs Mutual Legal Assistance Team provided crucial legal assistance to the Government of Mexico.


title: 华女对以营利为目的的签证欺诈和移民走私计划认罪

body_text: 今天早些时候，廖海燕（Haiyan Liao）在布鲁克林的联邦法院对签证欺诈和洗钱指控认罪，因为其参与了旨在将中国公民非法带入美国以谋取经济利益的多年计划。 廖某于2021年1月被起诉。 美国纽约东区检察官布雷昂·皮尔斯（Breon Peace）、司法部刑事司助理司法部长小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)、美国国务院外交安全局（DSS）首席副助理部长兼调查代理副助理主任格雷戈里·巴特曼（Gregory Batman）宣布了此消息。 “向廖支付了过千美元，以助向联邦政府撒谎，将包括无人陪伴的未成年人等个人带入美国，以谋取私利，”美国检察官皮尔斯（Peace）说。“本办公室致力维护法治并保护我们移民流程的完整性。” “刑事司致力于在法律允许的最大范围内起诉人口走私者和人贩子，”司法部刑事司助理总检察长 小肯尼斯·A·波利特(Kenneth A. Polite, Jr.)说。 “廖的定罪表明，对那些剥削弱势群体谋取个人贪婪的人士追究责任的承诺。” “外交安全局的全球存在让我们的机构能够充当美国和外国执法机构之间的联络人，协助双方努力制止人口贩运，” DSS 代理副助理调查主任格雷戈里·巴特曼(Gregory Batman)说。 “今天的认罪证明 DSS 在全球的部署如何能够阻止人口贩运的浪潮，并针对捕猎这些受害者的犯罪分子。” 根据法庭文件，已入籍的美国公民、土生土长的中国公民廖某与他人参与一项计划，协助来自中国的非公民非法进入美国。廖透过向美国驻广州领事馆提交包含虚假陈述的申请，以欺诈手段为这些非公民取得旅客签证。对于申请被批准的非公民——包括四名未成年人——廖为他们前往美国提供了便利，包括陪同他们乘坐商业航班飞往约翰肯尼迪国际机场。该等非美国公民及其家人支付了上千美元才能到达美国。由于此计划，廖透过从中国到美国的电汇汇款获取了至少 98,673.72 美元的非法收益。 廖承认了串谋非法将非法移民带入美国以谋取经济利益，最高可判处五年徒刑和洗钱罪，最高可判处20年徒刑。联邦地区法院法官将在考虑美国量刑指南和其他法定因素后确定任何量刑。 DSS 刑事欺诈调查科对此案进行了调查。 纽约东区助理美国检察官诺米·贝伦森(Nomi Berenson)和司法部人权和特别起诉科的审判律师拉米·巴达维(Rami Badawy)正起诉此案。 被告： 廖海燕（Haiyan liao） 年龄： 45 内华达州拉斯维加斯 纽约东区法院案卷号：20-CR-500 (SJ)


title: Jury convicts Cincinnati woman of crimes related to COVID-19 relief fraud

component: USAO - Ohio, Southern

body_text: A federal jury in the Southern District of Ohio today convicted Kelli Prather, 51, of Cincinnati of crimes pertaining to her request for more than $1.2 million in pandemic relief loans. She was remanded to the custody of the U.S. Marshals after the jury returned its guilty verdicts. According to testimony and evidence presented during the trial that began July 18, Prather applied for six Paycheck Protection Program (PPP) loans as part of the CARES Act COVID-19 pandemic relief. She claimed to own six businesses – Enhanced Healthcare Solutions, Life Skills Enhancement, Prather Property Management, Reliable Ambulette Services, Rich Glo Management Services and Tots R Us. Separately, Prather also applied for eight Economic Injury Disaster Loans (EIDL). In three of the EIDL applications she filed in November 2020, she represented that the businesses were majority owned by her disabled nephew. Prather sought more than $1.2 million in fraud relief and fraudulently received approximately $19,800. The jury convicted her of six counts of bank fraud (punishable by up to 30 years in prison), one count of making false statements in connection to credit or loan applications (up to 30 years in prison), four counts of wire fraud (up to 20 years in prison), and three counts of aggravated identity theft (carrying a mandatory 2-year sentence to run consecutive to any other sentence imposed). The court will set a date for sentencing following a pre-sentence investigation. Kenneth L. Parker, United States Attorney for the Southern District of Ohio, the Federal Bureau of Investigation, and the Social Security Administration Office of the Inspector General; and other members of the Financial Crimes Working Group Pandemic Fraud Committee announced the verdict at the conclusion of the trial before U.S. District Court Judge Matthew W. McFarland. Assistant United States Attorneys Anthony Springer and Ebunoluwa A. Taiwo are representing the United States in this case. # # #


title: Agoura Hills Accountant Pleads Guilty to Lying to Federal Officials Investigating Illegal Gambling Operation

body_text: LOS ANGELES – An entertainment industry accountant pleaded guilty today to a felony charge for lying to federal law enforcement officials about his role in laundering illicit proceeds from an illegal gambling operation run by a former minor-league baseball player and which involved professional athletes. William Eric Fulton, 59, of Agoura Hills, pleaded guilty to one count of making false statements. According to his plea agreement, Fulton and his company provided bookkeeping, accounting, and tax preparation services for Wayne Joseph Nix, 46, of Newport Coast, a former minor-league baseball player who for nearly 20 years ran an illegal bookmaking business. Beginning no later than 2011, Fulton was aware that Nix ran an illegal gambling business. Nonetheless, Fulton knowingly laundered Nix’s illegal gambling proceeds by continuing to provide financial services to Nix and providing access to the financial system. Specifically, Fulton continued to transfer money between accounts, issue checks and wires to Nix’s gambling clients who won large bets, and helped Nix obtain bank loans to facilitate the gambling business. Between 2010 and 2020, Fulton charged Nix approximately $336,645 in professional fees for his financial services. Fulton also admitted in his plea agreement that on three separate occasions from March 2011 to October 2019 he provided personal loans to Nix totaling $1.25 million, which allowed Nix to pay his gambling clients when Nix needed rapid access to funds, which Fulton agreed to provide at no cost to Nix. In addition, Fulton placed personal bets with Nix via the Sand Island Sports website. On one day, Fulton placed 14 bets, including three bets he made on a professional match of one of his company’s clients. Fulton also referred at least one of his company’s clients to Nix for the purposes of illegal gambling. During an October 2021 interview with federal law enforcement about the Nix gambling business, Fulton falsely denied all knowledge of Nix’s involvement in sports gambling, falsely claimed to have had no knowledge that Nix was a bookmaker until learning law enforcement had searched Nix’s home in February 2020, and repeatedly made the false assertion that he had never placed a bet with Nix. United States District Judge Dolly M. Gee scheduled a November 29 sentencing hearing, at which time Fulton will face a statutory maximum sentence of five years in federal prison. Fulton has agreed to pay a fine of no less than $673,290. Nix pleaded guilty in April 2022 to one count of conspiracy to operate an illegal gambling business and one count of subscribing to a false tax return. His sentencing hearing is scheduled for March 6, 2024. Nix’s longtime partner in the gambling operation – Edon Yoshida Kagasoff, 45, of Lake Forest – pleaded guilty in April 2022 to one count of conspiracy to operate an illegal gambling business. Kagasoff was sentenced on July 5 to six months of probation, was fined $1,000, and was ordered to forfeit $3,164,563 in ill-gotten gains. Former Major League Baseball player Yasiel Puig Valdés, 32, who allegedly lied to federal law enforcement investigating Nix’s illegal gambling operation, is charged with obstruction of justice and making false statements. His trial is scheduled for January 16, 2024. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Homeland Security Investigations and IRS Criminal Investigation are conducting the ongoing investigation in this matter. The HSI agents are part of the El Camino Real Financial Crimes Task Force. Assistant United States Attorneys Jeff Mitchell of the Major Frauds Section and Dan Boyle of the Environmental Crimes and Consumer Protection Section are prosecuting this case.


title: South Florida Resident Sentenced in Elaborate Prescription Medication Diversion Scheme

component: USAO - Florida, Southern

body_text: MIAMI – A 37-year-old South Florida resident, Eladio Vega, was sentenced yesterday to 87 months in prison, followed by three years of supervised release, for his role in a widespread fraud scheme involving the distribution of adulterated and misbranded cancer, HIV, psychiatric, and other expensive prescription medications to unsuspecting patients. In May, Vega pleaded guilty to one count of conspiracy to traffic misbranded and adulterated drugs in violation of Title 18, United States Code, Section 670. The prescription medication diversion fraud scheme involved a division of labor, in which street-level dealers obtained the medicines and supplied them to participants who inspected, cleaned, and packaged the drugs for shipment to others with established pharmaceutical wholesale companies. The wholesale company owners prepared fraudulent documentation, falsely representing that legitimate drug manufacturers had provided the medications to them. In fact, the suppliers had acquired the drugs through health care fraud, theft or burglary, or by buying the medications from patients who obtained prescriptions but chose to sell them rather than take their medicines. With the false documentation, the company owners then sold the newly misbranded medications to retail pharmacies. In turn, the retail pharmacies sold the medications to patients who did not know the real source of the drugs, which had been stored and transported with no regard to temperature, light, humidity, or other maintenance controls. To conceal the nature of their criminal enterprise and the identities of those profiting from it, conspirators routed money obtained from sales of the mislabeled and adulterated drugs through the bank accounts of multiple shell companies. To date, 17 defendants have been indicted in connection with this case, 15 of whom have pleaded guilty and been sentenced to prison, except for a corporation defendant, which was sentenced to a forfeiture of $78 million. U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; and Special Agent in Charge Justin C. Fielder of the U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, announced the sentence. FBI Miami and FDA-OCI Miami investigated the case. Assistant U.S. Attorney Frank Tamen prosecuted it. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture. This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 19-cr-20674. ###


title: Man Sentenced to Over 21 Years in Federal Prison for Sexually Assaulting a Child on the Menominee Indian Reservation

component: USAO - Wisconsin, Eastern

body_text: Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin,announced that Gerald “Doon” Pamaska (age: 55) received a sentence of 258 months in federal prison following a conviction for sexually assaulting a child on the Menominee Indian Reservation. The sentence, imposed on July 24, 2023, by Senior United States District Judge William C. Griesbach, was the result of a guilty plea entered by Pamaska on April 21, 2023. Following his prison sentence, Pamaska will serve the remainder of his life on supervised release. According to court documents, in the summer of 2019, Pamaska, who formerly resided in Keshena, Wisconsin, sexually abused a then-9-year-old girl in a hotel room on the Menominee Indian Reservation. The abuse was disclosed in April 2022. An FBI agent and tribal detective located the defendant in a Kansas jail and interviewed him there. The defendant admitted the offense and corroborated much of what the girl said about the timing and location of the crime. In sentencing the defendant, Judge Griesbach noted the obvious need for a significant sentence for a “horrendous offense.” Judge Griesbach based the sentence on the magnitude of the offense and noted a strong need to protect the public from the defendant. Judge Griesbach also remarked upon the need to send a strong message to deter “anyone but the undeterrable” from committing similar actions. The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, with assistance from the Willow Tree Cornerstone Child Advocacy Center. Assistant United States Attorney Andrew J. Maier prosecuted the case in United States District Court in Green Bay. # # # For Additional Information Contact: Public Information Officer Kenneth.Gales@usdoj.gov 414-297-1700 Follow us on Twitter


title: Former Chief Executive Officer Sentenced to 16 Months in Federal Prison for Investment Fraud Scheme

body_text: Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 24, 2023, Joseph Nemeth (age: 53) of Germantown, Wisconsin, was sentenced to 16 months in federal prison for carrying out an investment scheme that defrauded over 20 victims and caused a loss of at least $2.2 million. Nemeth had earlier pleaded guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343. The information presented at sentencing showed that Nemeth partnered with another individual to form a real estate business, Wisconsin Home Buyers Network, LLC (WIHBN), of which Nemeth was the Chief Executive Officer. Between 2012 and 2018, the partners solicited and obtained from more than 20 investors approximately $2.8 million, promising little or no risk and monetary returns ranging from 12% to 36%. In return, investors received promissory notes detailing the investment terms. Some investors also received mortgages that purported to be for specific properties to be acquired and rehabilitated with the investor’s funds, although the partners failed to record all but a few of the mortgages. Contrary to promises that the investor funds were secured by the assets of a successful and profitable business, WIHBN had business debt, delinquent tax obligations, and other financial issues that made the business unable to timely make payments on the promissory notes. Rather than being used for the promised investment purposes, investor funds were comingled with other funds and were used for Ponzi-type payments to existing investors, payroll for related businesses, debt reduction, personal draws by the partners, back taxes, and legal fees. When the partners were unable to pay as the promissory notes came due, they sought extensions, solicited additional funds from existing investors, and attempted to secure new investors. In the end, less than $400,000 of over $2.8 million in investor funds was returned to investors. Several victims filed impact statements with the court prior to sentencing, and one victim made in-person remarks during the sentencing hearing. These victims explained to the court how the scheme caused them significant financial and emotional harm. This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Employee Benefits Security Administration. Assistant U.S. Attorney John P. Scully and former Assistant U.S. Attorney Carol L. Kraft prosecuted the case. # # # For Additional Information Contact: Public Information Officer Kenneth.Gales@usdoj.gov 414-297-1700 Follow us on Twitter