title: Norwalk Business Owners Sentenced To Prison For Fraud Scheme

component: Federal Bureau of Investigation (FBI)

body_text: TOLEDO – Gerald E. Reichert, age 65, and Adam M. Reichert, age 36, were sentenced by Judge Jack Zouhary of the Northern District of Ohio, Western Division, on April 6, 2023, following their guilty pleas to Conspiracy to Commit Major Fraud Against the United States, Highway Project Fraud, and Wire Fraud. Gerald E. Reichert was sentenced to serve 16 months in prison, and to pay a fine of $90,000. Adam M. Reichert was sentenced to serve 8 months in prison, and to pay a fine of $70,000. Both men were ordered to pay total restitution of $579,014. Gerald (father) and Adam (son) were owners and operators of Oglesby Construction, Inc., a pavement marking contractor based in Norwalk, Ohio, that performed paint-striping services for the States of Ohio, Kentucky, and West Virginia. The men participated in a scheme to defraud state and federal governments by contracting with state authorities to perform paint-striping of roads using a certain amount of paint and glass beads, but then under-applying those materials and falsely informing states that they had complied with contractual requirements. The scheme participants misled the states by either manipulating daily excel spreadsheet reports submitted to the states, or by attaching physical manipulation devices to application trucks including applicators and scales. The case was investigated by the United States Department of Transportation, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Robert N. Melching, Jody L. King, Suzana K. Koch, and Gene Crawford.


title: Three Former Executives for Magellan Diagnostics Charged with Conspiracy, Wire Fraud and FDA Violations

component: USAO - Massachusetts

body_text: BOSTON – The former CEO, COO, and Director of Quality Assurance and Regulatory Affairs for Magellan Diagnostics, Inc. (Magellan), a medical device company headquartered in Billerica, Mass., have been charged in connection with concealing a device malfunction that allegedly produced inaccurately low lead test results for tens of thousands of children and other patients. Amy Winslow, 51, of Needham Heights, Mass.; Hossein Maleknia, 64, of Bonita Springs, Fla.; and Reba Daoust, 66, of Amesbury, Mass., were charged with conspiracy to commit wire fraud; wire fraud; conspiracy to defraud an agency of the United States; and introduction of misbranded medical devices into interstate commerce with intent to defraud and mislead. Winslow and Daoust will make an initial appearance in federal court in Boston later today. Maleknia is expected to make an initial appearance in federal court in Tampa later today. Magellan’s devices – LeadCare Ultra, LeadCare II and LeadCare Plus – detected lead levels and lead poisoning in the blood of children and adults using either venous (i.e., blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Plus and LeadCare Ultra were predominantly used to test venous samples. According to the indictment, Winslow, Maleknia and Daoust – Magellan’s former CEO, COO, and Director of Quality Assurance and Regulatory Affairs, respectively – repeatedly misled Magellan customers and the FDA about a serious malfunction that affected Magellan’s LeadCare devices when they were used to test venous blood samples. By allegedly hiding the malfunction and later deceiving customers and the FDA about when they discovered the malfunction, the nature, extent and frequency of the malfunction, and the risks associated with the malfunction, the defendants caused an estimated tens of thousands of children and other patients to receive inaccurately low lead test results. “According to the CDC, there is no safe level of lead in the blood. Additionally, young children and pregnant mothers from low-income households living in public housing are the most vulnerable to lead exposure. We allege that these defendants deceived customers and the FDA about the reliability of medical tests that detected lead levels. By doing so, we assert that they endangered the health and lives of incredibly vulnerable victims,” said United States Attorney Rachael S. Rollins. “This office, along with our other law enforcement partners, will vigorously investigate and prosecute those who put corporate profits before patient health. Here, we allege the personal gain is at the expense of poor people, children, and individuals who are pregnant. We pledge to advocate on these victims’ behalf and hold bad corporate actors accountable.” “Individuals and companies whose lead testing devices provide inaccurate results can put the health of all patients, and especially vulnerable children, at significant risk,” said Special Agent in Charge Fernando P. McMillan, FDA Office of Criminal Investigations New York Field Office. “We will continue to pursue and bring to justice those who jeopardize the health of patients and the public.” “Today, we arrested three former senior executives at Magellan Diagnostics for hiding a serious flaw in the lead testing devices the company produced, resulting in inaccurate test results for tens of thousands of children and other patients. We believe these executives knew about this malfunction for years, but failed to come clean to their customers and the FDA about it in order to boost their company’s bottom line,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The last thing sick children and their parents should have to worry about is whether diagnostic tests and devices live up to their manufacturer’s claims. This case should make it crystal clear to all companies that do business in Massachusetts, healthcare or otherwise, that they will be brought to justice for misleading consumers with false promises about their products.” “Concealing the fact that a device is producing inaccurate lead test results to boost profits while knowing that there is no safe level of lead in the blood, as alleged in this case, is a brazen disregard to the health and safety of our program beneficiaries,” said Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s arrests should serve as strong reminder that we will never tolerate such behavior that puts patients at risk.” It is alleged that the defendants first learned that a malfunction in their LeadCare Ultra device could cause inaccurate lead test results –specifically, lead test results that were falsely low – during the FDA clearance process in or around June 2013. The defendants, however, allegedly released LeadCare Ultra to the market in December 2013 without informing customers or the FDA of the malfunction. Several months after the release, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. It is further alleged that the defendants drafted and caused Magellan to provide false and misleading statements to customers that they “recently identified cases” of the malfunction and they did not observe the malfunction “in our clinical trials prior to the product release.” According to court documents, the defendants, in fact, had known about the malfunction for over a year, including before the product release. Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device, which was by far Magellan’s highest-revenue product. Winslow and Maleknia, however, were positioning Magellan for sale, which could have been put in jeopardy if there was a malfunction affecting LeadCare II. It is alleged that Winslow told a Magellan employee to stop studying the malfunction in LeadCare II devices because Magellan needed to maintain “plausible deniability.” Only after Magellan was acquired by Meridian Bioscience, Inc. for $66 million in March 2016, did the defendants notify customers and the FDA about the LeadCare II malfunction. Magellan’s report to the FDA about LeadCare II allegedly made materially false and misleading statements and concealed material facts about Magellan’s discovery of the malfunction in LeadCare II (after Meridian acquired Magellan, Winslow received a bonus of approximately $2 million and Maleknia received a bonus of approximately $448,000). According to court documents, the defendants delayed notifying the FDA and then misled the FDA about the malfunction. The defendants only filed an FDA report for LeadCare Ultra after an outside consultant told Magellan that if they did not notify the FDA about the malfunction, the consultant would. In 2017, the FDA contacted Magellan and asked when the company first discovered the malfunction. It is alleged that, at Daoust and Maleknia’s instruction, Magellan’s representative falsely told the FDA that Magellan first discovered the problem after receiving customer complaints in late 2014 and shortly before Magellan notified the FDA in 2015 – even though Magellan actually discovered the malfunction almost four years earlier, in 2013. Winslow also caused Magellan to send a false timeline to the FDA, which omitted the company’s internal 2013 studies about the malfunction. The FDA ultimately found that the LeadCare Devices could not accurately test venous samples, leading to a recall of all LeadCare Devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II and LeadCare Plus for venous blood samples because of the malfunction. According to court documents, as referenced by the Centers for Disease Control and Prevention (CDC), there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead. If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013-2017, please complete the questionnaire located on the FBI’s website at https://www.fbi.gov/MagellanCaseInquiry . Information about the status of the case is located on the U.S. Attorney’s Office website https://www.justice.gov/usao-ma/press-highlights . The charges of wire fraud and wire fraud conspiracy as alleged in the indictment provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to defraud an agency of the United States provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of introduction of misbranded medical devices provide for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Rachael S. Rollins; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Elysa Wan, David Derusha, and James Herbert of Rollins’ Criminal Division and Kelly Lawrence, Chief of Rollins’ Healthcare Fraud Unit, are prosecuting the case.


title: Two California Men Sentenced for Trafficking Large Quantities of Methamphetamine and Fentanyl

component: USAO - Wyoming

body_text: Eric Roberto Nechochea, age 24, and Steve Heriberto Ordonez, age 21, of San Bernadino, California, were recently sentenced for possession with intent to distribute methamphetamine and fentanyl. Nechochea was sentenced on March 21, 2023, to 80 months’ imprisonment with three years of supervised release and a $100 special assessment. Ordonez was sentenced on February 24, 2023, to 80 months’ imprisonment with five years of supervised release and a $100 special assessment. Chief United States District Court Judge Scott W. Skavdahl imposed both sentences. Neither man had a previous criminal history. According to court documents and statements made in court, the Wyoming Highway Patrol pulled over a truck on July 16, 2022, for speeding outside of Casper. Nechochea was driving and Ordonez was the passenger. Suspicious, the trooper asked for consent to search the vehicle and they agreed. During the search, the trooper noticed that the truck’s interior had mismatched parts and tool marks. A Casper Police Department canine officer and his canine partner responded to aid with the search. The drug dog alerted to the presence of controlled substances, which led to a thorough search of the truck. Inside a hidden compartment in the truck, investigators found 10 vacuum sealed bags of controlled substances. Six of the bags contained nearly 5 kilograms of methamphetamine and three of the bags had a combined total of over 10,000 fentanyl pills, weighing approximately 1.5 kilograms. The last bag contained approximately 1 kilogram of what officers initially thought was cocaine but later tested as fentanyl. This crime was investigated by the Casper Police Department, Natrona County Sheriff’s Department, Wyoming Highway Patrol, and Homeland Security Investigations. Assistant United States Attorney Christyne M. Martens prosecuted the case. Case No. 21-cr-00100-SWS


title: Riverton Man Charged with Murder on the Wind River Indian Reservation

component: Criminal Investigative Division (FBI)

body_text: Francis James Acebo Jr, age 33, of Riverton, Wyoming, was charged by complaint with first degree murder and using, carrying, and discharging a firearm during and in relation to a crime of violence. The defendant made an initial appearance on March 29, 2023, before U.S. Magistrate Judge Teresa M. McKee. If convicted, Acebo faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment with 10 years to life of supervised release following any prison sentence. Defendant also may be fined up to $500,000 and be required to pay a $200 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Special agents with the Bureau of Indian Affairs and the Federal Bureau of Investigation are investigating this crime. Assistant U.S. Attorney Kerry Jacobsen is prosecuting the case. A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Case No. 23-MJ-19-ABJ


title: Raceland Man Pleads Guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Crime

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

body_text: NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that DAMER SMITH , age 46, of Raceland, Louisiana, pled guilty on April 4, 2023 to Count Three (3) of the indictment, charging him with Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 924(c)(1)(A)(i). In exchange, the government dismissed Counts 1 and 2, that charged him with Possession of a Firearm After a Domestic Violence Conviction, in violation of Title 18, United States Code, Sections 922(g)(9) and 924(a)(2), and Possession with Intent to Distribute Marijuana in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), respectively. In pleading guilty to Count Three, the defendant faces a minimum term of imprisonment of five (5) years and a maximum term of imprisonment of life imprisonment, a term of supervised release of up to five (5) years, and a fine of up to $250,000. A mandatory special assessment fee of $100.00 also applies. United States District Court Judge Greg G. Guidry set the sentencing hearing in this matter for July 1, 2023. According to court documents, on or about November 17, 2018, deputies with the Lafourche Parish Sheriff’s Office responded to SMITH’s residence after he threatened to kill his minor children. Upon the arrival of deputies, SMITH opened the door of his residence and fired a shot into the yard. Subsequently, SMITH surrendered, and deputies escorted the children from the residence. Deputies executed search warrants on the residence and located three firearms, ammunition, and approximately 3,898 grams of prepackaged marijuana. 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. U.S. Attorney Evans praised the work of the United States Department of Alcohol, Tobacco, Firearms, and Explosives and the Lafourche Parish Sheriff’s Office in this investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.


title: Bogalusa Man Sentenced to 160 Months Imprisonment for Violating the Federal Gun Control Act

body_text: NEW ORLEANS, LOUISIANA – JAKARI BROWN, a/k/a “Jakari Lemar ,” age 24, a resident of Bogalusa, Louisiana, was sentenced on April 4, 2023 by U.S. District Court Judge Greg G. Guidry to consecutive terms of 120 months and 40 months, respectively. Also, Judge Guidry imposed 3 years of supervised release and a mandatory $200 special assessment fee after BROWN plead guilty to two counts of being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans. According to court documents, on April 25, 2019, BROWN , a convicted felon, possessed an Iberia Firearm (HiPoint) Model JPC, .40 caliber pistol that he used during a shootout near the corner of Hickory and South Columbia Streets in Bogalusa. BROWN was again found to be in possession of a gun on December 27, 2021, when police discovered a Smith & Wesson Model SW9VE, nine-millimeter pistol under the driver’s seat in the vehicle BROWN was driving. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Washington Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys J. Benjamin Myers and Maurice E. Landrieu, Jr. of the Narcotics Unit.


title: Former Keolis Assistant Chief Engineer and Electrical Company General Manager Charged with Defrauding Keolis Commuter Services

body_text: BOSTON – The former Assistant Chief Engineer of Facilities for Keolis Commuter Services (Keolis) and the former general manager of a Massachusetts-based electrical company have been charged in a scheme to defraud Keolis of over $8 million. John P. Pigsley, 58, was indicted by a federal grand jury on five counts of wire fraud, one count of conspiracy to commit wire fraud, six counts of tax evasion, one count of filing a false tax return and four counts of structuring financial transactions to evade reporting requirements. Pigsley was arrested this morning and will appear in federal court in Boston at 1:45 p.m. today. John Rafferty, 69, of Hale’s Location, N.H., has been charged by an Information and has agreed to plead guilty to one count of conspiracy to commit wire fraud. “There is perhaps no single state agency that impacts the daily lives of the millions of people who live and work in the greater Boston area more than the MBTA. Over the last few years, T ridership has had to endure its fair share of both acute and chronic issues. Today, unfortunately, we add fraud to that list. The criminal conduct alleged here specifically involves the Commuter Rail – the entity Keolis operates for the T – and two men who lied to, cheated and stole from Keolis,” said United States Attorney Rachael S. Rollins. “We allege that the defendants stole over $8 million from Keolis, and that Pigsley did so while an employee of the organization. The $8 million they stole could have been used to ensure significantly safer, faster and more reliable transportation for riders. Instead, these men lined their pockets for their own selfish gain. It is my hope that this prosecution holds these alleged criminals accountable.” “These men are accused of crossing the line from fixing our broken rail system to defrauding it when they devised a plan to pad their paychecks by stealing more than $8 million that was meant for repairs and routine maintenance at a time when overall needs on the commuter rail are so deep, funding sources are so strained, and the need for better service is so crucial,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Their alleged actions demonstrate both a disdain for the rule of law, and a clear-cut case of greed. Today’s arrests should be a warning to others that the FBI and our partners are committed to investigating and bringing to justice anyone who abuses their positions of trust to fraudulently siphon off public funds.” "The serious accusations against John Pigsley are particularly troubling as he breached the trust he was given as a senior lead with Keolis,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston. “These allegations represent an egregious breach of the trust that had been placed in Keolis through its operation of the MBTA. The Special Agents of IRS Criminal Investigation are committed to protecting the integrity of our system of taxation by investigating individuals who violate the tax laws." “Today’s announcement should serve as notice that we are committed to thwarting and unravelling complex fraud schemes involving millions of taxpayer dollars used to maintain MBTA commuter rail systems,” said U.S. Department of Transportation, Office of Inspector General’s Special Agent-in-Charge Christopher A. Scharf. “We will continue working with our Federal and prosecutorial partners to pursue those who deceitfully manipulate business contracting and accounting practices for personal gain.” According to the charging documents, Keolis has operated the MBTA commuter rail system since 2014 under an annual contract of $291–$349 million. Between 2014 and November 2021, Pigsley was employed as Keolis’ Assistant Chief Engineer of Facilities and was responsible for the maintenance of MBTA Commuter Rail Facilities and their engineering operations, including handling corrective repair and project management for assets and maintenance and ordering and approving his subordinates’ orders of electrical supplies from outside vendors for Keolis. Pigsley also operated a separate construction company called Pigman Group. Rafferty was the general manager of LJ Electric, Inc., an electrical supply vendor to which Keolis paid over $17 million between 2014 through 2021. Between July 2014 and November 2021, Pigsley and Rafferty allegedly defrauded Keolis of over $4 million through a false LJ Electric invoicing scheme. Specifically, it is alleged that Rafferty purchased vehicles, construction equipment, construction supplies and other items for Pigsley, Pigman Group and others, and Pigsley directed Rafferty to recover the cost of these items by submitting false and fraudulent LJ Electric invoices to Keolis. The fraudulent LJ Electric invoices included a percentage profit that Rafferty allegedly kept for himself. It is further alleged that Rafferty spent more than $3 million on items for Pigsley and others – including: at least nine trucks; construction equipment including at least seven Bobcat machines; at least $1 million in home building supplies and services; and a $54,000 camper– for which Keolis paid Rafferty more than $4 million based on false LJ Electric invoices. In addition to the false invoicing scheme, it is alleged that Pigsley directed Keolis to purchase copper wire which he then stole and sold to scrap metal businesses, keeping the cash proceeds for himself. To conceal the theft, it is alleged that Pigsley personally picked up the copper wire orders from vendors or had the orders delivered to his Beverly home. Pigsley allegedly then personally transported the wire to scrap yards where he traded it for thousands of dollars in cash several times a month and sometimes more than once a day. According to the charging documents, Pigsley obtained more than $4.5 million in cash by stealing and scrapping the copper wire. It is further alleged that Pigsley defrauded the IRS by failing to withhold and pay federal income taxes on income he received from the LJ Electric invoicing scheme and from scrapping copper wire. Pigsley also allegedly filed a false tax return for the tax year 2016. Additionally, Pigsley is alleged to have deposited over $1.9 million in cash into his bank accounts between 2014 and 2021, and to have structured some of those deposits to evade currency transaction reporting requirements applicable to financial institutions. With respect to the Indictment charging Pigsley, the charges of wire fraud and wire fraud conspiracy provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of filing a false tax return provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $250,000. The charge of aggravated structuring provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. With respect to the Information filed against Rafferty, the charge of conspiracy to commit wire fraud provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. U.S. Attorney Rollins, FBI SAC Bonavolonta, IRS-CI SAC Simpson, and DOT-OIG SAC Scharf made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Elysa Q. Wan of Rollins’ Public Corruption & Special Prosecutions Unit are prosecuting the cases. The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Genesis Market Disrupted in International Cyber Operation

component: USAO - Wisconsin, Eastern

body_text: U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin joined the Attorney General and other Justice Department officials in announcing a coordinated international operation that resulted in the dismantlement of Genesis Market, a criminal marketplace accessible on the dark web and clear web that advertised and sold packages of account access credentials – such as usernames and passwords for email, bank accounts, and social media – that had been stolen from malware-infected computers around the world. “Working across 45 of our FBI Field Offices and alongside our international partners, the Justice Department has launched an unprecedented takedown of a major criminal marketplace that enabled cybercriminals to victimize individuals, businesses, and governments around the world,” said Attorney General Merrick B. Garland. “Our seizure of Genesis Market should serve as a warning to cybercriminals who operate or use these criminal marketplaces: the Justice Department and our international partners will shut down your illegal activities, find you, and bring you to justice.” “Yesterday, the Department of Justice and its partners dismantled the Genesis Market and arrested many of its users around the world,” said Deputy Attorney General Lisa O. Monaco. “Genesis falsely promised a new age of anonymity and impunity, but in the end only provided a new way for the Department to identify, locate, and arrest on-line criminals. The Department of Justice is shining a light on the internet’s darkest corners – in the last year alone, our agents, prosecutors, and partners have dismantled the darknet’s largest marketplaces – Hydra Market, BreachForums, and now Genesis. Each takedown is yet another blow to the cybercrime ecosystem.” Since its inception in March 2018, Genesis Market has offered access to data stolen from over 1.5 million compromised computers around the world containing over 80 million account access credentials. Account access credentials advertised for sale on Genesis Market included those connected to the financial sector, critical infrastructure, and federal, state, and local government agencies. Genesis Market was also one of the most prolific initial access brokers (IABs) in the cybercrime world. IABs attract criminals looking to easily infiltrate a victim’s computer system. Genesis Market offered for sale the type of access sought by ransomware actors to attack computer networks in the United States and around the world and published private-sector reports indicate that they indeed were used by ransomware actors to attack such systems. Genesis Market was user-friendly, providing users with the ability to search for stolen access credentials based on location and/or account type (e.g., banking, social media, email, etc.). In addition to access credentials, Genesis Market obtained and sold device “fingerprints,” which are unique combinations of device identifiers and browser cookies that circumvent anti-fraud detection systems used by many websites. The combination of stolen access credentials, fingerprints, and cookies allowed purchasers to assume the identity of the victim by tricking third party websites into thinking the Genesis Market user was the actual owner of the account. Genesis Market users were located all over the world. Federal law enforcement has worked to identify prolific users of Genesis Market who purchased and used stolen access credentials to commit fraud and other cybercrimes. This effort resulted in hundreds of leads being sent to FBI field offices throughout the United States, as well as to foreign law enforcement partners. Further, as part of this operation, law enforcement seized, pursuant to court order, 11 domain names used to support Genesis Market’s infrastructure. “The operation being announced today is the direct result of the hard work, dedication, and exceptional collaborative efforts of the FBI and its partners around the globe,” stated U.S. Attorney Haanstad. “Along with investigative partners and our Justice Department colleagues, my office remains committed to using all available tools to protect individuals from cybercriminals like those who operate these types of online marketplaces.” “Today’s takedown of Genesis Market is a demonstration of the FBI’s commitment to disrupting and dismantling key services used by criminals to facilitate cybercrime,” said FBI Director Christopher Wray. “The work in this case is a great example of the FBI’s ability to leverage our technical capabilities and work shoulder-to-shoulder with our international partners to take away the tools cyber criminals rely on to victimize people all across the world.” As alleged in a domain seizure warrant authorized by the U.S. District Court for the Eastern District of Wisconsin, Genesis Market offered for sale victim credentials associated with the White House, Department of State, Justice Department, IRS, Department of Energy, U.S. Postal Service, National Aeronautics and Space Administration, and the Department of Defense. The FBI Milwaukee Field Office investigated the case, with assistance from the U.K. National Crime Agency, Italy’s Polizia de Stato, Police of Denmark, Australian Federal Police, Royal Canadian Mounted Police, Canada’s Sûreté du Québec, Romanian Police, French Police Cybercrime Central Bureau, Spain’s Policia Nacional, Spain’s Guardia Civil, Germany’s Federal Criminal Police Service, Swedish Police Authority, Poland’s Central Bureau for Combating Cybercrime, Dutch National Police, Finland’s National Bureau of Investigation, Switzerland’s Office of the Attorney General, Swiss Federal Police, Estonia’s Prosecutor General’s Office, Iceland’s Metropolitan Police, and Eurojust. The department appreciates the assistance provided by authorities in Bulgaria and Latvia in response to Mutual Legal Assistance requests. Trial Attorneys Benjamin Proctor and Jessica Peck of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Farris Martini for the Eastern District of Wisconsin are handling the investigation. The Justice Department’s Office of International Affairs provided significant assistance. Victim credentials obtained over the course of the investigation have been provided to the website Have I Been Pwned, which is a free resource for people to quickly assess whether their access credentials have been compromised (or “pwned”) in a data breach or other activity. Victims can visit HaveIBeenPwned.com to see whether their credentials were compromised by Genesis Market so that they can know whether to change or modify passwords and other authentication credentials that may have been compromised. If you have been active on Genesis Market, in contact with Genesis Market administrators, or have been a victim and have a need to report, please email the FBI at FBIMW-Genesis@fbi.gov . # # # For Additional Information Contact: Public Information Officer Kenneth.Gales@usdoj.gov 414-297-1700


title: Former City of Miami Police Officer Pleads Guilty to COVID-19 Relief Fraud

component: USAO - Florida, Southern

body_text: MIAMI – Gregory Dennis, 45, a former police officer with the City of Miami Police Department, has pled guilty to wire fraud in connection with two fraudulent applications for Paycheck Protection Program (PPP) loans he submitted to a Small Business Administration (SBA) approved PPP lender while he was still employed with the City of Miami Police Department. On March 28, 2021, Dennis submitted a false and fraudulent PPP loan application claiming to be a sole proprietor operating a cleaning service. The PPP loan application falsely represented his business’ 2020 gross income and in support of the application, he submitted a false and fraudulent IRS Form 1040, including a Schedule C, for tax year 2020. As a result of the false and fraudulent application, Dennis obtained a $20,833 PPP loan from a California-based SBA approved PPP lender. On April 10, 2021, Dennis submitted a second false and fraudulent PPP loan application, this time seeking a second draw PPP loan. Once again, Dennis claimed to be a sole proprietor operating a cleaning service, and this second draw application also fraudulently represented his business’ 2020 gross income. This second draw application also was supported by the same false and fraudulent 2020 IRS Form 1040 and Schedule C that was used to fraudulently obtain the first PPP loan. Again, the fraudulent application was approved successfully, and Dennis received an additional $20,833 in second draw PPP loan proceeds from the same California-based lender. Dennis is scheduled for sentencing on June 13, at 1:15 p.m. before U.S. District Judge William P. Dimitrouleas in Fort Lauderdale, where he faces a possible maximum sentence of up to 20 years in prison. 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 Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA-OIG), Investigations Division’s Eastern Region, announced the guilty plea. The FBI’s Miami Area Corruption Task Force, which includes task force officers from the City of Miami Police Department’s Internal Affairs Section, and SBA-OIG investigated the case. U.S. Attorney Lapointe thanked the City of Miami Police Department and the Miami-Dade County Office of Inspector General for their invaluable assistance with this case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case. Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture. In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-60063. ###


title: Clarksville Man Sentenced To Federal Prison For Child Exploitation Charges

body_text: NASHVILLE – A Clarksville, Tennessee, man was sentenced to federal prison yesterday for child exploitation charges, announced U.S. Attorney Henry C. Leventis. Kevin Figueroa, 33, was sentenced to 10 years in prison concurrently on each count of attempted coercion and enticement of a minor to engage in unlawful sexual activity and attempted transfer of obscene material to a minor. Figueroa was sentenced to an additional 30 months in prison for destruction or removal of evidence to prevent search or seizure, to run consecutively, and will serve 10 years of supervised release upon his release from prison. Figueroa was indicted in April 2022, after contacting an undercover FBI agent who was conducting an online covert investigation using a popular mobile dating application. The undercover profile indicated that the persona of the agent was a 15-year-old female living in Clarksville. Figueroa, using the profile “Spike tkro,” continued to message the agent, even after confirming the persona was a 15-year-old female and sent a lewd photo and message before exchanging phone numbers with the agent. In subsequent communications, Figueroa proposed meeting with the agent to engage in sexual activity and arranged a meeting in November 2019, for which Figueroa failed to show. The following month, Figueroa initiated contact with the agent on a different dating app and continued to communicate with who he believed to be the same 15-year-old female. Another meeting was subsequently arranged for March 17, 2020, at an apartment building in Clarksville for the purpose of engaging in sexual activity. When Figueroa arrived at the meeting location, he was met by FBI agents. While being interviewed by FBI agents, Figueroa learned that they intended to seize his phone and surreptitiously deleted apps from his phone. Figueroa was found guilty of the charges after a bench trial before Chief U.S. District Judge Waverly D. Crenshaw, Jr., in September 2022. This case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Monica R. Morrison and Robert E. McGuire. # # # # #


title: Ringleader of Mail Theft Conspiracy Sentenced to 9 Years for Using Credit Cards Stolen From the Mail

component: USAO - Illinois, Northern

body_text: CHICAGO — A federal judge in Chicago has sentenced the ringleader of a mail and identity theft conspiracy to nine years in federal prison for stealing U.S. Postal Service (USPS) customer’s credit cards out of the mail and using their personal identifying information to make unauthorized purchases with the stolen cards. DAVEY HINES, 30, of Naperville was indicted by a federal grand jury on 1 count of conspiracy to defraud the United States, 1 count of theft or receipt of stolen mail, 4 counts of unauthorized access device fraud, and 4 counts of aggravated identity theft in February 2021 for events which occurred between June 2018 and December 2019. Hines was indicted alongside 10 other individuals involved in the scheme as the result of a multi-agency investigation dubbed “Operation Cash on Delivery.” The investigation identified USPS employees who stole credit cards and other financial instruments and provided them to Hines and others in exchange for cash or other items of value. Hines, who also recruited most of the USPS employees, then worked with his co-defendants to unlawfully obtain the USPS customers’ personal identifying information, including dates of birth and Social Security numbers, and fraudulently activate the stolen cards. Over the course of the 19-month conspiracy, Hines and his co-conspirators stole more than 657 credit cards and made more than $462,719 in fraudulent purchases. Hines plead guilty to 4 counts charging conspiracy, receipt of stolen mail, access device fraud, and aggravated identity theft on July 8, 2022. On April 3, 2023, U.S. District Court Judge Edmond E. Chang sentenced Hines to 108 months in federal prison, to be followed by 3 years of supervised release, and ordered Hines pay restitution to the victim financial institutions that issued the stolen credit cards. Hines committed the offenses while on court-supervised release following a prior federal conviction for bank fraud in 2015. The sentence is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Ruth M. Mendonça, Inspector-in-Charge of the Chicago Office of the U.S. Postal Inspection Service; Scott Pierce, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Central Area Field Office; and Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. The government was represented by Special Assistant U.S. Attorney Peter Madriñan and Assistant U.S. Attorneys Paige Nutini and Kirsten Moran.


title: Dentist Pleads Guilty To Tax Evasion

component: USAO - Florida, Middle

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces that Frantz Brignol has pleaded guilty to one count of tax evasion and one count of failing to file a tax return. Brignol faces up to six years in federal prison on the offenses. A federal grand jury had returned the indictment against Brignol on November 22, 2022. A sentencing date has not yet been set. According to the court records, Brignol, a dentist, had amassed almost $900,000 in tax liabilities to the IRS. Between approximately 2014 and 2020, Brignol evaded his tax payments by hiding hundreds of thousands of dollars in his mother’s bank accounts (for which he had signatory authority), trading funds overseas, and failing to disclose a bank account to the IRS. Despite an annual income of more than $200,000 in the calendar year 2020, Brignol also failed to file an income tax return as required under federal law. This case is being investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.


title: Springfield Man Involved in Drive-By Shootings Sentenced for Illegal Firearms

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – A Springfield, Mo., man has been sentenced in federal court for illegally possessing firearms following his involvement in two drive-by shootings. Cartevion Marquis Chapman, 34, was sentenced by U.S. District Judge Roseann Ketchmark on Tuesday, April 4, to nine years and seven months in federal prison without parole. On March 24, 2022, Chapman pleaded guilty to being a felon in possession of firearms. Chapman admitted he was in possession of a Smith & Wesson 9mm semi-automatic pistol and a Kel-Tec pistol with an extended 30-round magazine on Dec. 6, 2020. According to court documents, Chapman was involved in a shooting and retaliatory shooting that occurred on Dec. 5 and 6, 2020, over allegations of stolen drugs. Chapman’s vehicle was damaged in a drive-by shooting at a nightclub in downtown Springfield on Dec. 5, 2020. After leaving the nightclub, Chapman met with co-defendant Darris Lamar Mull, 38, of Springfield. Mull received a phone call from his girlfriend, who said there were people with guns inside their house looking for Mull. Mull was upset because they went to his house when his kids were present. They went to check on Mull’s girlfriend and children, then co-defendant Nicholas David Caligone, 44, of Springfield, drove Chapman and Mull to find the people who had been at his house, who were at an address on Kerr Street in Springfield. When they arrived at the Kerr Street residence at about 6 a.m. on Dec. 6, 2020, Chapman told investigators, they got out of the car and “bullets went flying.” Chapman, Mull and others fired multiple rounds; police officers recovered 40 spent shell casings from the area of the shooting. Shell casing were found in front of at least eight separate residences, indicating that Chapman and Mull sprayed the neighborhood with bullets. At least two of the homes had damage consistent with being struck by gunfire. Chapman and Mull got into Caligone’s Volkswagen immediately after the shooting and left the area. Chapman hid his Kel-Tec firearm under the front passenger seat, and put Mull’s Smith & Wesson pistol, which was stolen, in the glovebox. Springfield police officers who heard the gunshots saw Caligone’s vehicle at the intersection of East Kearney and North Delaware and conducted a felony stop. Caligone, who was driving, Chapman, who was in the front passenger seat, and Mull, who was in the back passenger seat, were arrested. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Chapman has two prior felony convictions for burglaries at businesses and prior felony convictions for aggravated assault and being a felon in possession of a firearm for pointing a gun at the victim and her boyfriend and threatening them. Chapman, who was on probation for that firearm offense at the time of his arrest in this case, also has 20 misdemeanor criminal convictions and multiple arrests that did not result in charges. Mull pleaded guilty to four counts of being a felon in possession of a firearm and awaits sentencing. Caligone pleaded guilty to one count of being a felon in possession of a firearm and awaits sentencing. Chapman is also charged in a separate case in Greene County Circuit Court with unlawful use of a weapon and unlawful possession of a firearm related to this incident. This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, and the Springfield, Mo., Police Department. Project Safe Neighborhoods This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Estonian National Charged with Helping Russian Military Acquire U.S. Electronics, Including Radar Components; Sought-Computer Hacking Software

component: USAO - New York, Eastern

body_text: An eighteen-count indictment was unsealed today in Brooklyn charging Andrey Shevlyakov, an Estonian national, with conspiracy and other charges related to procuring U.S.-made electronics on behalf of the Russian government and military. Shevlyakov was arrested on March 28, 2023 in Estonia. As alleged in the indictment and other court filings, at the time of his arrest, the Estonian seized inbound shipments addressed to Shevlyakov’s front companies, including one that contained approximately 130 kilograms (286 pounds) of radio equipment. Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Special Agent in Charge, FBI Houston and Trey McClish, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office announced the charges. “As alleged, for more than a decade, the defendant has been acquiring sensitive electronics from U.S. manufacturers on behalf of the Russian government, in defiance of U.S. export controls,” stated United States Attorney Peace. “Our Office will not relent in its efforts to stop those who unlawfully procure U.S. technology for Russia or any other sanctioned countries, entities or individuals.” Mr. Peace expressed his appreciation for Task Force KleptoCapture, the Department of Justice’s Office of International Affairs, and the Estonian Internal Security Service (KAPO) for their valuable assistance. “For years, Mr. Shevlyakov’s elaborate web of deceit allowed him to allegedly procure sensitive American-made electronics on behalf of the Russian military,” said FBI Houston Special Agent in Charge James Smith. “His illegal acquisitions of sophisticated U.S. technology endangered citizens in both Ukraine and the United States. FBI Houston will continue to work with our valued international partners, especially the Estonian Internal Security Service (KAPO), to investigate and disrupt actors who illicitly support the unprovoked invasion of Ukraine by Russian armed forces.” “As these actions have proven, BIS will continue to hunt down and bring to justice those who harm our national security and illicitly supply the Russian regime,” said Special Agent in Charge McClish. As alleged in the indictment and other court filings, Shevlyakov procured sensitive electronics from U.S. manufacturers on behalf of Russian end-users, including defense contractors and other Russian government agencies. Most of these items would have been unavailable to Russian end-users if ordered directly for shipment to Russia. The items that Shevlyakov purchased included low-noise pre-scalers and synthesizers (used to conduct high-frequency communications) and analog-to-digital converters, which can be found in most defense systems that must respond to environmental conditions, including software-defined radio, avionics, missiles, and electronic warfare systems. Shevlyakov’s communications with Russia-based customers included explicit discussions of whether there were “military” goods in certain orders. Shevlyakov also attempted to acquire computer hacking tools. In May 2020, one of Shevlyakov’s front companies exchanged messages with a Russia-based individual about acquiring a licensed copy of Metasploit Pro, a U.S.-made software tool that is used to penetrate computer networks. Metasploit is intended for use in assessing network vulnerabilities, but is also widely used by computer hackers. A license to use Metasploit Pro costs approximately $15,000. In the email, the individual asked Shevlyakov’s front company to acquire Metasploit and detailed a history of prior failed attempts to acquire the software through third parties in countries outside Russia. The individual added that the software was “dual use” and that accordingly, “sales to Russia are virtually impossible.” Thus, the individual said, “we cannot reveal the end user, nor can we identify ourselves.” On or about June 1, 2020, the front company email address wrote back, listing prices for different versions of Metasploit Pro. To deliver his goods, Shevlyakov ran an intricate logistics operation involving frequent smuggling trips across the Russian border by himself and others. Shevlyakov engaged in this conduct despite being listed on a Department of Commerce-maintained list (the “Entity List”) that designates individuals and companies who are barred from exporting items from the United States without a license. Shevlyakov was added to the Entity List in 2012, after the U.S. government identified him as a procurement agent charged with pursuing U.S. technology for Russian government and military end users. Shevlyakov used false names and a web of front companies to evade the Entity List’s restrictions. If convicted, the defendant faces a maximum of 20 years’ imprisonment. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Alexander Mindlin is in charge of the prosecution, along with Trial Attorney Matthew Anzaldi of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Mary Clare McMahon. The Office thanks the Estonian authorities for their valuable support. The Defendant : ANDREY SHEVLYAKOV Age: 45 Tallinn, Estonia E.D.N.Y. Docket No. 22-CR-490 (RPK)


title: Two Companies Agree to Pay $1.24 Million to Resolve Allegations of Fraud in Whittier Bridge/I-95 Improvement Project

body_text: BOSTON – Walsh Construction Company (Walsh) and Melo’s Rodbusters, Inc. (Melo’s) have agreed to pay $1.24 million collectively to resolve False Claims Act allegations that they participated in a fraudulent scheme designed to take advantage of the Disadvantaged Business Enterprise (DBE) program in connection with their work on the federally funded Whittier Bridge/I-95 Improvement Project. Walsh, an Illinois corporation, is a general contracting and construction management firm. Melo’s is a Massachusetts corporation and a certified DBE that subcontracted with Walsh on the project to perform furnishing and installation of steel rebar. The DBE program provides opportunities for businesses owned by socially and economically disadvantaged individuals to work on projects financed by the federal government. The program requires contractors to award, or make good faith efforts to award, a percentage of subcontracts on a given project to DBEs that serve a “commercially useful function.” A DBE does not serve a commercially useful function if it acts as a mere pass-through—that is, a DBE through which funds are passed to create the appearance that historically disadvantaged persons did the work, when they did not. Companies regularly certify their compliance with the DBE regulations when making claims for payment on federally funded contracts. In February 2013, the Massachusetts Department of Transportation (MassDOT) selected Walsh, along with its joint venture partner, to be the prime contractor for a federally funded MassDOT project known as the Whittier Bridge/I-95 Improvement Project. Walsh, in turn, subcontracted with DBEs, including Melo’s, for portions of the work. The project was completed in 2018. As part of the settlement agreement, Walsh admitted that it assisted with certain work functions for Melo’s, and for another DBE on the project that is not a party to the settlement, including assistance in the selection of suppliers and participation in price discussion and negotiation. As part of its own settlement agreement, Melo’s admitted that Walsh performed these functions even though they should have been performed by Melo’s. Melo’s also admitted to providing inaccurate information in response to a MassDOT inquiry regarding Melo’s price negotiation with suppliers. Melo’s has agreed to pay $146,102 to resolve the government’s investigation and Walsh has agreed to pay $1,099,000. First Assistant United States Attorney Joshua S. Levy and U.S. Department of Transportation, Office of Inspector General’s Special Agent-in-Charge Christopher A. Scharf made the announcement today. Assistant U.S. Attorney Alexandra Brazier of the Affirmative Civil Enforcement Unit and Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit handled the matter.


title: Chicago Man Sentenced to 33 Months in Prison

component: USAO - Indiana, Northern

body_text: HAMMOND- Rajesh Kanuru, 46 years old, of Chicago, Illinois, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to wire fraud and embezzlement against a bankruptcy estate, announced United States Attorney Clifford D. Johnson. Kanuru was sentenced to 33 months in prison, 2 years of supervised release and ordered to pay $348,388.50 in restitution. According to documents in this case, Kanuru was an attorney with a practice located in Chicago, Illinois. From March 2012 through August 2018, Kanuru devised a scheme to defraud clients who had filed for bankruptcy, the Bankruptcy Trustee and the U.S. Bankruptcy Court for the Northern District of Indiana. In particular, Kanuru represented clients in a personal injury lawsuit. When these clients later filed for bankruptcy, Kanuru was appointed by the bankruptcy court to gather the settlement proceeds from their personal injury lawsuit to turn over to the bankruptcy estate on behalf of the clients. Instead, Kanuru embezzled the personal injury settlement proceeds totaling $348,388.50 for his own personal use and benefit. “The Bankruptcy system, to work as it is designed, relies upon attorneys to act in the best interest of their clients and to comply with orders issued by the Bankruptcy judges,” said United States Attorney Clifford D. Johnson. “When, as happened in this case, an attorney violates both his clients trust and his obligations to the Bankruptcy court to unlawfully enrich himself, my Office will seek justice by prosecuting to the fully extent of the law.” “Abuse of the bankruptcy system by embezzling estate funds and concealing those acts strikes at the very core of the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, United States Trustee for Indiana, Central and Southern Illinois (Region 10). “Today’s sentencing sends a strong message that these actions will not be tolerated. I am grateful to U.S. Attorney Johnson and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.” The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis with additional office in South Bend, IN and Peoria IL. The investigation was conducted by the United States Postal Inspection Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the United States Trustee for Region 10. The case was prosecuted by Assistant U. S. Attorney Luke Reilander. ###


title: Local Driving School Owner Pleads Guilty to Driver's License Bribery Scheme at Brockton RMV

body_text: BOSTON – A Brockton man pleaded guilty today to bribing a road test examiner to issue driver’s licenses to individuals who did not pass, or even take road tests at the Registry of Motor Vehicles (RMV) in Brockton. Estevao Semedo, 61, of Brockton, pleaded guilty to one count of conspiracy to commit honest services mail fraud before U.S. District Court Judge Indira Talwani who scheduled sentencing for Aug. 1, 2023. Semedo was charged on March 2, 2023. Semedo, the owner of a driving school, conspired to defraud the RMV into issuing driver’s licenses to applicants who did not pass the road test. Specifically, Semedo paid a road test examiner at the Brockton RMV service center to misrepresent to the RMV that certain driver’s license applicants had passed their road test when, in fact, they had not. Some of the applicants did not even show up to take the test. As a result of the fraud, the RMV mailed driver’s licenses to unqualified applicants. In total, Semedo paid the road test examiner no less than $17,000 in bribes in exchange for fraudulent passing scores on road tests. The charge of conspiracy to commit honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine. The charging document also seeks a $17,000 forfeiture money judgment against Semedo. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Rachael S. Rollins; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and U.S. Department of Transportation, Office of Inspector General’s Special Agent-in-Charge Christopher A. Scharf made the announcement today. The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF). Valuable assistance was provided by the Mattapoisett Police Department. Assistant U.S. Attorneys Christine Wichers and Adam Deitch of Rollins’s Public Corruption & Special Prosecutions Unit and Assistant U.S. Attorney Mackenzie Duane of Rollins’ Major Crimes Unit are prosecuting the case. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit also assisted with the case.


title: Four Tampa Bay Area Tax Preparers Plead Guilty

body_text: Tampa, Florida – United States Attorney Roger B. Handberg announces that Jamica Nelms, Capriesha Cummings, Camille Harper, and Ashley Flournoy have pleaded guilty to conspiracy to commit tax fraud and aiding or assisting in the preparation of false income tax return documents. Each faces a maximum penalty of eight years in federal prison. A sentencing date has not yet been set. According to the plea agreement, from January 2017 through April 2019, Nelms, Cummings, Flournoy, and Harper were income tax return preparers at Business #1 in St. Petersburg. They conspired to defraud the United States by preparing false income tax returns for numerous clients of Business #1 in order for the Internal Revenue Service (IRS) to issue tax refunds in excess of what the clients were entitled to receive. In doing so, Nelms, Cummings, Flournoy, and Harper documented on Schedule C forms they prepared that clients owned fictitious businesses which maximized the clients’ ability to claim the Earned Income Credit on their tax returns and thereby increase their tax refunds. They also fraudulently reported that clients were entitled to claim credits for fuel taxes or education expenses paid to make it appear that their clients were entitled to tax refunds. “The defendants’ admissions today stress the importance of the taxpayer acting as the first line of defense against unscrupulous preparers and their scams,” said IRS-CI Tampa Special Agent in Charge Brian Payne. “With the filing season deadline just a week away, this investigation is a timely reminder about why the taxpayer must do their due diligence when selecting a preparer because ultimately you are responsible for your return.” This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Greg Pizzo, Jay Trezevant, and Maria Guzman.


title: Middle Georgia Meth Trafficking Leader Sentenced to 35 Years Imprisonment

body_text: MACON, Ga. – The leader of an armed drug trafficking organization responsible for distributing approximately 16 kilograms of methamphetamine into Middle Georgia was sentenced to 35 years in prison. Ontarrio Veal aka “Torrie,” 33, of Warner Robins, was sentenced to serve 420 months in prison to be followed by four years of supervised release by U.S. District Judge Tilman E. “Tripp” Self, III on April 4, after he previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Nov. 15, 2022. There is no parole in the federal system. “Ontarrio Veal brazenly ran an armed criminal organization that pushed a significant amount of methamphetamine into Warner Robins and surrounding communities,” said U.S. Attorney Peter D. Leary. “He is now held to account through the hard work of our prosecutors, working alongside our Organized Crime Drug Enforcement Task Force partners.” “This investigation deals a fatal blow to a once-thriving ‘meth’ ring,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “With the leader now behind bars for a long time, the citizens of Warner Robins and elsewhere can rest assured that their communities are much safer today thanks to the outstanding case work by DEA and our local law enforcement partners.” “ATF considers the Organized Crime Drug Enforcement Task Force a critical partner in its long-term mission of removing armed gangs, criminals and narcotics traffickers from our communities,” said Assistant Special Agent in Charge Beau Kolodka, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Atlanta Field Division. “The Warner Robins Police Department is honored to have worked in conjunction with our federal partners through the Organized Crime Drug Enforcement Task Force which resulted in the outcome of this case,” said Assistant Chief Wayne Fisher, Warner Robins Police Department. “It is through such local, state and federal partnerships that impacts such as these can be realized. It was with great work and effort from the men and women of this task force which resulted in these arrests that will have an immeasurable impact for the good of our shared communities.” According to documents and other evidence admitted into court, Drug Enforcement Administration (DEA) agents and Warner Robins Police Department officers investigated Veal’s Warner Robins-based drug trafficking organization from Jan. to June 2020. Law enforcement obtained court orders to intercept the phone calls and text messages from Veal’s and co-defendant Tamara Hall’s cell phones. Agents learned that Veal was a multi-kilogram methamphetamine dealer and surveilled Veal and various co-defendants conducting methamphetamine transactions and traveling to Atlanta to purchase large quantities of methamphetamine. Veal was taken into custody in June 2020, on a return trip from Atlanta in possession of three kilograms of methamphetamine and a Glock .40 caliber semi-automatic pistol with a 50-round drum magazine. Agents executed search warrants at various locations in Middle Georgia, seizing multiple firearms and ammunition, methamphetamine and more than $100,000 cash. The organization is responsible for distributing more than 16 kilograms of methamphetamine. Nine additional co-defendants have pleaded guilty and/or been sentenced as a result of this case: Matthew Kay, 36, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Sept. 6, 2022, and was sentenced to serve 235 months in prison to be followed by four years of supervised release to run consecutively to three sentences he is currently serving in Houston County, Georgia, on Jan. 19.; Reginald Lowe, 41, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Aug. 30, 2022, and was sentenced to serve 240 months in prison to be followed by four years of supervised release to run consecutively to a state sentence he is currently serving in Houston County, Georgia, for an aggravated assault conviction on Dec. 6, 2022; Milton Simmons aka Mann, 41, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 1, 2022, and was sentenced to serve 120 months on Jan. 10; Donna Ussery, 31, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19, 2022, and was sentenced to serve 100 months in prison on Oct. 4, 2022; Parsa Ervin, 45, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Aug. 30, 2022, and was sentenced to serve 57 months in prison to be followed by one year of supervised release to run consecutively to any term of imprisonment that may be imposed in three separate cases in Houston County on Jan. 19.; Marquell Gaines aka Paris, 38, of Warner Robins, pleaded guilty to use of a communication facility to conspire to possess with intent to distribute methamphetamine on July 19, 2022, and was sentenced to serve 48 months in prison on Oct. 11, 2022; Tamara Hall, 40, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19, 2022, and sentencing is scheduled for May 2; Victor Mendoza, 34, of Warner Robins, pleaded guilty to conspiracy to possess with intent to drugs on Dec. 1, 2022, via a global plea agreement in the Southern District of Alabama and sentencing is scheduled for June 2; and Eddie Linkhorn, 42, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Oct. 20, 2022, and sentencing is scheduled for June 6. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . This case was investigated by Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Warner Robins Police Department. The case was prosecuted by Deputy Criminal Chief Will Keyes.


title: Geneva Man Sentenced to 120 Months in Prison

body_text: FORT WAYNE –Chad Billington, 38 years old, of Geneva, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to distribution of methamphetamine, announced United States Attorney Clifford D. Johnson. Billington was sentenced to 120 months in prison followed by 5 years of supervised release. According to documents in the case, Billington engaged in the sale of methamphetamine to law enforcement on several occasions during November and December of 2020. The methamphetamine obtained from Billington had a purity level of 97 percent or higher. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Allen County Sheriff’s Department and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Brent A. Ecenbarger. ###


title: Zuni man charged with assault and firearms offenses

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 Ian Channing Lasiloo was charged with assault with a dangerous weapon, being a prohibited person in possession of a firearm and ammunition, and using and carrying a firearm during and in relation to a crime of violence. Lasiloo, 30, of Zuni, and an enrolled member of the Zuni Tribe, appeared in federal court today for a detention hearing and will remain in the custody of a halfway house pending trial, which has not been scheduled. According to an indictment, on Aug. 15, 2022, Lasiloo assaulted a victim, identified as John Doe, with a .22 caliber revolver with the intent to cause bodily harm. An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lasiloo faces up to life in prison. The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Robert James Booth II is prosecuting the case. # # # 23-64


title: California Man Admits Sending Nude Pictures to Missouri Teen

body_text: ST. LOUIS – A man from California pleaded guilty to a federal charge in St. Louis, Missouri Wednesday and admitted sending pictures of his genitals to a Missouri teen. Colin M. Lind, 43, of San Diego County, California, met the 15-year-old girl and her family while he and his family were on vacation in Florida in the summer of 2021. After returning to Missouri, the teenage girl began receiving text messages from Lind. Lind admitted as part of his plea agreement sending a series of messages asking for pictures of the girl. He also sent two pictures of his genitals that he had taken in a hotel bathroom and a text saying, “you turn me on so much!!” The teen told authorities that Lind placed his hand on her genitals while they were in Florida. Lind pleaded guilty to a felony count of transfer of obscene material to a minor. Lind is scheduled to be sentenced July 20. The crime carries a maximum penalty of 10 years in prison, a $250,000 fine, or both. The case was investigated by the FBI and the Frontenac Police Department. Assistant U.S. Attorney Jillian Anderson is prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Nampa Man Sentenced to 25 Years in Federal Prison for Producing Child Pornography

component: USAO - Idaho

body_text: BOISE – Troy Groene, 48, of Nampa, Idaho, was sentenced to 300 months in federal prison for sexual exploitation of a child, U.S. Attorney Josh Hurwit announced today. Senior U.S. District Judge B. Lynn Winmill described Groene as a sexual predator. Many of Groene’s victims appeared in court. Judge Winmill praised them as “heroes” and “brave young women” for their courage in coming forward and holding Groene accountable for his crimes. According to court records, the investigation began when the Nampa Police Department (Nampa PD) received information that Groene had committed a sexual assault. During the course of that investigation, Nampa PD learned that Groene also had sexual contact with a 16-year-old female. Nampa PD obtained a state search warrant for Groene’s cellphone and cloud storage account and located explicit videos that Groene had produced of the 16-year-old victim. During a search of Groene’s cloud storage account, Nampa PD also located explicit videos that Groene had produced of a 17-year‑old female. During the investigation, two additional 17-year-old females disclosed that Groene had engaged them in sexual contact and produced explicit videos of them. Judge Winmill also sentenced Groene to a lifetime of supervised release. As part of the plea agreement entered earlier in the case, Groene was ordered to forfeit a truck he used to meet with some of the victims and $660,787.84 in proceeds from the sale of his house where he had met with some of the victims. Groene alo was ordered to pay $200,000 in restitution to the victims and will be required to register as a sex offender as a result of the conviction “I agree with the Court that the victims in this case are heroes,” said U.S. Attorney Hurwit. “As we observe Sexual Assault Awareness Month this month, we should recognize the importance of creating spaces where victims—like the brave young women in this case—feel safe to report any form of sexual abuse or sexual exploitation. And we must rededicate ourselves to supporting the victims of these reprehensible crimes.” U.S. Attorney Hurwit commended the cooperative efforts of the Nampa Police Department, Homeland Security Investigations, and the Idaho Internet Crimes Against Children Task Force, which led to the charges in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. ###


title: Dunklin County Man Sentenced to 15 Years in Prison for Methamphetamine and Gun Offenses

component: USAO - Missouri, Eastern

body_text: CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Wednesday sentenced John Andrew Schoolcraft, 32, of Kennett, Missouri, to serve 15 years in federal prison for the offenses of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. At a guilty plea hearing in January, Schoolcraft admitted that beginning in May of 2022 and continuing through June 23, 2022, he and others were involved in distributing methamphetamine throughout Dunklin County, Missouri. The Missouri State Highway Patrol utilized confidential informants and audio and video recording devices to conduct controlled drug buys of methamphetamine from Schoolcraft and others involved. The case culminated in the execution of a search warrant at Schoolcraft’s residence in Kennett where officers seized over four pounds of methamphetamine, a loaded Glock, .45 caliber semi-automatic pistol and $2,785 in cash. This case was investigated by the Missouri State Highway Patrol, assisted by the Southeast Missouri Drug Task Force. Assistant U.S. Attorney Julie Hunter handled the prosecution for the government.


title: Shrewsbury Bookkeeper Admits Embezzling $849,000

body_text: ST. LOUIS – A bookkeeper from Shrewsbury, Missouri on Wednesday admitted embezzling $849,000 from a client. Cora G. Willard, 47, waived her right to an indictment by a grand jury and pleaded guilty in front of U.S. District Judge Henry E. Autrey to one felony count of wire fraud. Willard ran a bookkeeping, payroll, and money-management assistance company called Red Hen Business Services. In May of 2019, Willard was hired to do the bookkeeping for a man who operated a money management business. The victim provided Willard with access to his bank accounts and financial records to enable her to perform her duties, including paying his bills. Willard admitted that from at least Nov. 29, 2019 through June 10, 2022, she stole $849,000 from that client. Willard made nearly 100 unauthorized wire transfers to herself from the victim’s bank account. Many of the wire transfers occurred after the victim asked Willard to close the account. In addition, instead of making tax and bill payments authorized by the victim, Willard sent those payments into bank accounts that she controlled, then sent false balance sheets to her client. After the client discovered that he was missing large amounts of money, Willard blamed one of her employees, her plea says. Willard is scheduled to be sentenced in July. The crime carries a maximum penalty of 20 years in prison, a $250,000 fine, or both. Willard will also be ordered to repay the money and has agreed in the plea to do so. The case was investigated by the FBI. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.


title: Fort Wayne Woman Sentenced to 69 Months in Prison

body_text: FORT WAYNE –Kelly Krieger, 38 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to aiding and abetting armed bank robbery, announced United States Attorney Clifford D. Johnson. Krieger was sentenced to 69 months in prison, 2 years of supervised release and ordered to pay $202,184 in restitution to the victim bank. According to documents in the case, a bank in Fort Wayne was robbed on Christmas Eve 2019 by an individual armed with a deadly weapon, later identified later as Horia Malutan. During their investigation, law Enforcement determined that one of the bank employees, the branch manager, Kelly Krieger, was involved in the robbery. Krieger admitted to law enforcement that she and Malutan planned the robbery. Krieger said that she told Malutan where to stand before coming into the bank, what words to use once inside the bank and how to exit the bank. Co-defendant Malutan pled guilty to the armed bank robbery. He was sentenced in May, 2022, to 57 months imprisonment and ordered to pay restitution to the victim bank. This case was investigated by the Federal Bureau of Investigation with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery. ###


title: Picayune Woman Pleads Guilty to Collecting Benefits Under Two Social Security Numbers

component: USAO - Mississippi, Southern

body_text: Jackson, Miss. – A Picayune woman pled guilty to theft of public money by collecting benefits using two Social Security numbers, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jason Albers of the Social Security Administration (SSA), Office of the Inspector General, Dallas-Kansas City Field Division. According to court records, Zenda Marie Bryan, 69, admitted receiving Disability Insurance Benefits and Supplemental Security Income benefits using one Social Security number while simultaneously using another Social Security number to obtain and maintain employment. This conduct occurred in the Western District of Oklahoma, where she was charged in a federal indictment. The charges have since been transferred to the Southern District of Mississippi, where Bryan is now living. “Ms. Zenda Bryan misused SSA programs and numbers for her own gain; her actions not only defrauded the Disability Insurance Benefit program but also the Supplemental Security Income program, a critical safety net for those in need. This plea will hold her accountable for the fraud she committed against SSA and taxpayers,” said Special Agent in Charge Jason Albers. “I thank the U.S. Attorney’s Offices in the Southern District of Mississippi and the Western District of Oklahoma for their work in prosecuting this case.” Bryan will be sentenced on July 17, 2023, and faces a maximum penalty of ten years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The case was investigated by the Social Security Administration, Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Gaines Cleveland of the Southern District of Mississippi and Assistant United States Attorney Elizabeth Joynes of the Western District of Oklahoma.


title: Albemarle Man Pleads Guilty to Filing False Tax Return

component: USAO - North Carolina, Middle

body_text: Winston-Salem, NC – MICHAEL TODD FORREST of Albemarle NC, appeared in federal court today on tax fraud charges, announced Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina. FORREST pleaded guilty to filing a false tax return, a violation of Title 26, United States Code, Section 7206(1), after an investigation revealed that he had withheld information from a tax return preparer regarding income related to his business. According to court-filed documents, FORREST owned and operated a business known as The Forrest Fence Company, LLC located in Albemarle, North Carolina. The investigation revealed that during the years 2017-2021, FORREST routinely directed Forrest Fence customers to make checks payable to him, instead of to the business. Forrest would, in turn, cash those checks or deposit the checks into a personal bank account instead of the Forrest Fence business checking account. As part of his scheme, FORREST would conceal those checks from his tax return preparer, which resulted in a tax loss of over $200,000. “To attempt to evade taxes by hiding income and filing false returns, is a theft from the American public. It is a felony offense that carries severe consequences,” said Donald “Trey” Eakins, Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. “The overarching principle of IRS’s enforcement strategy is simply this: We protect the integrity of the tax system by ensuring everyone pays their fair share of tax.” Sentencing is scheduled to take place on August 14, 2023, at 9:30 a.m. in Winston-Salem, North Carolina, courtroom number 2, before United States District Court Thomas D. Schroeder. At sentencing, Forrest faces a maximum sentence of three years in prison, a period of supervised release of up to one year, and monetary penalties. Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina made the announcement after United States District Judge Thomas D Schroeder accepted the plea. IRS-Criminal Investigation is investigating the case and Assistant U.S. Attorney Ashley Waid is prosecuting the case. ###


title: Brandon Resident Sentenced to 50 Years for Production of Child Pornography

body_text: Jackson, Miss. – A Brandon resident was sentenced to serve a total of 50 years in federal prison for production of child pornography and possession of child pornography, announced U.S. Attorney Darren LaMarca, Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation, and Mississippi Attorney General Lynn Fitch. Emilio Bellizzia a/k/a Juan Emilio Bellizzia, 44, a legal resident of the United States from Mexico, was sentenced on April 4, 2023 in U.S. District Court in Jackson. Beginning in April 2021, and continuing through June 2021, FBI agents from Milwaukee and Jackson, along with the Mississippi Attorney General’s Office, investigated groups of individuals who were engaged in the receipt, possession, distribution, and production of child sex abuse material. On September 15, 2022, agents executed a federal search warrant at Bellizzia’s home in Brandon and found several electronic devices containing child pornography. Bellizzia attempted to flee to Mexico the following day. Bellizzia was indicted by a federal grand jury and pled guilty on January 6, 2023 to production of child pornography and possession of child pornography. Bellizzia was sentenced to serve two concurrent 30 year sentences for two counts of production of child pornography and a consecutive sentence of 20 years to serve for possession of child pornography, for a total of 50 years, followed by a lifetime of supervised release. He will also be required to register as a sex offender. The case was investigated by the Federal Bureau of Investigation and the Mississippi Attorney General’s Office. Assistant United States Attorney Glenda R. Haynes prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .


title: Acoma man sentenced to 70 months for sexual abuse in Indian Country

component: USAO - New Mexico

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Karl Shroulote, Sr. was sentenced to 70 months in prison. Shroulote, 41, of Acoma, New Mexico, and an enrolled member of the Pueblo of Acoma, pleaded guilty on Dec. 21, 2022, to sexual abuse in Indian Country. In his plea agreement, Shroulote admitted that on April 29, 2018, he sexually assaulted a victim, identified in court records as Jane Doe, while she was unconscious in his home on the Acoma Pueblo. Upon his release from prison, Aguilar will be subject to 5 years of supervised release and must register as a sex offender. The Bureau of Indian Affairs investigated this case with assistance from the Pueblo of Acoma Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case. # # # 23-65


title: Final Defendant Sentenced for Million-Dollar Credit Card Fraud Scheme Involving Arlington Coffee Shop

component: USAO - Virginia, Eastern

body_text: ALEXANDRIA, Va. – Two Washington D.C. women and a Clinton, Maryland, man were sentenced for their roles in a conspiracy to commit bank fraud. According to court documents, from at least May 2016 until Oct. 2016, Adiam Berhane, 50, conspired to carry out a fraud scheme with Tiffany Younger, 51, and Keith Lemons, 56, involving stolen credit card information that was used to purchase gift cards, expensive luxury goods, and other items from local retail stores. Berhane would obtain stolen identities of residents of the Washington, D.C. metropolitan area and elsewhere for the creation of fraudulent credit cards. The fraud caused over hundreds of thousands of dollars in losses to area retailers and financial institutions. Younger and Lemons were recruited by Berhane to make purchases using fraudulent credit cards. As part of the scheme, items purchased with victims’ credit card information would sometimes be returned for refunds to bank accounts that Berhane controlled. In addition to fraudulently purchasing items and receiving fraudulent refund proceeds to her bank accounts, Berhane used fraudulent payment cards to purchase gift cards at retail stores which were then redeemed at her business, Caffe Aficionado, in Arlington. More than a third of Caffe Aficionado’s income from June 2013 to July 2016 came from a pattern of highly unusual redemptions of American Express gift cards, with the pattern beginning several months before Caffe Aficionado opened in approximately October 2013. Following a December 2022 jury trial, Berhane was convicted of multiple charges of conspiracy to commit bank fraud, bank fraud, trafficking in unauthorized access devices, aggravated identity theft, unlawful possession of 15 or more access devices, and possession of access device-making equipment with intent to defraud. On March 15, Berhane was sentenced to 10 years in prison for her role in the conspiracy. On March 15, Lemons was sentenced to time served and six months of home confinement for his role. On April 5, Younger was sentenced to 2 years of probation. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Andy Penn, Arlington County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga. This case was prosecuted with the assistance of the Montgomery County Police Department, the FBI Cyber Task Force, the U.S. Postal Office of the Inspector General, the U.S. Secret Service, and the U.S. Capitol Police. Assistant U.S. Attorneys Bibeane Metsch and Jonathan S. Keim prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:20-cr-25, 1:22-cr-9, and 1:21-cr-27.


title: Morris County Man Admits Posing as Woman to Induce Dozens of Minors to Send Sexually Explicit Pictures and Videos

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Morris County, New Jersey, man who was employed by a New Jersey elementary school and helped run a youth soccer club today admitted producing and possessing child pornography, U.S. Attorney Philip R. Sellinger announced. Steven Brooks, 36, of Morristown, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of production of child pornography and one count of possession of child pornography. According to documents filed in this case and statements made in court: In January 2021, law enforcement officers were notified about possible child pornography on an external hard drive belonging to Brooks. Pursuant to judicially authorized search warrants, law enforcement officers searched Brooks’ external hard drive, electronic devices and social media accounts. Brooks utilized a fake online persona on social media platforms to solicit photos and videos from dozens of minors that depicted the minors engaging in sexual activity. Brooks acknowledged, as relevant conduct, the attempted online enticement, production and possession of child pornography involving at least 70 victims. The production of child pornography charge carries a statutory minimum sentence of 15 years in prison and a maximum of 30 years in prison; the possession of child pornography charge carries a maximum sentence of 10 years in prison. Each charge also includes a maximum fine of $250,000. Sentencing is scheduled for Sept. 21, 2023. U.S. Attorney Sellinger credited special agents and members of the Child Exploitation Human Trafficking Task Force of the Newark field office of the FBI, under the direction of Special Agent in Charge James E. Dennehy, as well as special agents from the FBI’s San Francisco field office, under the direction of Special Agent in Charge Robert K. Tripp, with the investigation leading to today’s guilty plea. The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark. brooks.information.pdf