title: Billings meth, fentanyl trafficker sentenced to 10 years in prison

body_text: BILLINGS — A Billings woman who admitted to trafficking methamphetamine and fentanyl pills in the community after law enforcement found drugs, firearms and cash in a vehicle in which she was an occupant was sentenced today to 10 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said. The defendant, Shaynee Renee Gibbs, 45, pleaded guilty in October 2023 to possession with intent to distribute controlled substances. U.S. District Judge Susan P. Watters presided. The government alleged in court documents that in November 2022, Laurel Police Department officers conducted a traffic stop of a Cadillac occupied by Gibbs and co-defendant Aaron Meeks. In an initial search of the vehicle, officers located a firearm and drug paraphernalia. Later, law enforcement executed a search warrant on the vehicle and a package Gibbs and Meeks had said they were awaiting. The package contained approximately 3.8 pounds of meth and fentanyl. In the Cadillac, agents located fentanyl pills, a 9mm pistol, a 9mm rifle, multiple rounds of ammunition and $12,461 in cash. Meeks told law enforcement that he and Gibbs were picking up drug packages of meth and fentanyl coming from Arizona for co-defendant Cynthia Pruett. Gibbs told law enforcement that Pruett was distributing large quantities of meth and fentanyl and storing drugs at a storage unit. Pruett was sentenced previously to 15 years and three months in prison for her conviction in the case. Meeks and a third co-defendant, Jacob Taylor West, are pending sentencing for their convictions in the case. Assistant U.S. Attorney Colin M. Rubich prosecuted the case. The Drug Enforcement Administration, Billings Police Department, U.S. Border Patrol, Laurel Police Department, Yellowstone County Sheriff’s Office and Montana Highway Patrol conducted the investigation. 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. XXX


title: Founder and Former CEO of Sustainable Fuel Company Pleads Guilty to Multimillion Dollar Embezzlement and Investor Fraud Scheme

component: Criminal Division

body_text: The founder and former CEO of a sustainable fuel company pleaded guilty today to wire fraud in connection with a scheme to embezzle at least $5.9 million from the company and to defraud several investors out of $15 million. According to court documents, between 2021 and 2022, Bryan Sherbacow, 55, of Charleston, South Carolina, and Washington, D.C., defrauded the company he co-founded by transferring company funds without authorization to his personal bank account and by making unauthorized personal expenditures from a company bank account. Sherbacow attempted to conceal his actions by, among other things, emailing altered bank statements and other falsified financial records to the company’s outside accounting firm and members of the company’s board. Sherbacow used embezzled funds to pay for, among other things, a vintage Mercedes-Benz sports car, a Range Rover sport utility vehicle, payments to an art auction operator, personal tax liens, personal credit card payments, rent payments on personal residences, payment to a beach club, electronics, and a down payment on a condo. To raise additional funds for the company, Sherbacow also sent or caused to be sent altered bank statements and other falsified financial records to prospective and current investors. For example, Sherbacow caused a false and fabricated bank statement to be sent to two investors, in which Sherbacow intentionally removed transactions showing transfers from the company bank account to his personal bank account and falsified account balance information to make it appear that the company possessed more cash on hand than it possessed, due in part to Sherbacow’s unauthorized transfer of funds. Sherbacow also caused a balance sheet containing false and misleading financial information to be sent to another investor. In at least partial reliance on the fabricated bank statement and false and misleading financial information, three investors collectively invested approximately $15 million. Sherbacow pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on May 16 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement. The FBI Washington Field Office and the Defense Criminal Investigative Service, Charleston Resident Agency are investigating the case. Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case.


title: Final defendants sentenced to prison for roles in conspiracy to steal aircraft design secrets

component: Federal Bureau of Investigation (FBI)

body_text: SAVANNAH, GA: Two California men have been sentenced to federal prison for their roles in a conspiracy to steal aircraft design and testing information in order to shorten the regulatory approval process for a competing company’s technology. Juan Martinez , 53, of Brea, California, was sentenced to 63 months in prison after being convicted in August 2023 in U.S. District Court in Savannah on one count of Conspiracy to Steal Trade Secrets, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia, while Joseph Pascua , 61, of Escondido, California, was sentenced to 86 months in prison after being convicted in February 2023 for Conspiracy to Steal Trade Secrets. U.S. District Court Judge R. Stan Baker also fined Martinez and Pascua $1,000 each and ordered them to serve three years of supervised release upon completion of their prison terms. There is no parole in the federal system. “Ideas have value, especially when those ideas involve complex engineering designs such as those stolen by the participants in this conspiracy,” said U.S. Attorney Steinberg. “Our law enforcement partners did exceptional work to identify the members of this conspiracy and bringing them to justice.” As the evidence showed at trial, Martinez was a contractor who worked as a technical lead for a small aeronautics company. With Pascua and the other conspirators, he launched a scheme to steal proprietary trade secret information from a large aircraft company for use in developing and marketing their own technology, with the intent to market and sell that technology to the true owner’s competitors. Two other conspirators are serving federal prison terms after pleading guilty in the case. Craig German , 60, of Kernersville, North Carolina, is serving 70 months in prison after pleading guilty to Conspiracy to Steal Trade Secrets, plus 20 months for Perjury and False Statements to a Government Agency for providing false information during testimony given in his first sentencing. Gilbert Basaldua , 63, of Hilton Head Island, South Carolina, is serving 80 months in prison after pleading guilty to Conspiracy to Steal Trade Secrets and Interstate Transportation of Stolen Property. “When companies invest huge amounts of time and money to develop technologies, only to have those technologies stolen, the results are devastating,” said Will Clarke, Supervisory Senior Resident Agent of FBI Atlanta’s Savannah office. “These defendants intended not only to enrich themselves but bypass the legally established system. This case should serve as a warning to those entrusted with valuable trade secrets: If you break the law, you will be punished.” The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Darron J. Hubbard and Jenna G. Solari.


title: Former investment advisor sentenced for decade-long Ponzi scheme

component: USAO - Georgia, Northern

body_text: ATLANTA - John J. Woods has been sentenced to nearly eight years in federal prison for operating a 13-year Ponzi scheme that victimized more than 400 investors and caused a loss of over $49 million. “Woods, while serving as a fiduciary, promised investors profitable returns but used the monies he raised from new investors to pay Ponzi profits to earlier investors,” said U.S. Attorney Ryan K. Buchanan. “Woods abused the trust of his victims, including retirees, seniors, and military veterans, who lost their life savings and retirement accounts due to his greed.” “Illegal activity involving the investment industry, especially Ponzi schemes, has unfortunately brought financial ruin to many Americans,” said Keri Farley, Special Agent in Charge of FBI Atlanta. Hopefully this sentence sends the message that the FBI will not tolerate individuals who offer victims false promises and take advantage for their own personal benefit.” According to U.S. Attorney Buchanan, the charges and other information presented in court: Woods operated a Ponzi scheme until being shut down by the U.S. Securities and Exchange Commission (SEC) in 2021. Woods solicited investors to invest in a fund called, “Horizon Private Equity.” Woods, and other investment adviser representatives acting under his direction, promised potential Horizon investors rates of return of six to seven percent on their investments. They represented that Horizon would earn a return by investing in, for example, government bonds, stocks, or small real estate projects. Woods, and others acting at his direction, also assured investors that Horizon investments carried minimal risk and were safe because Horizon maintained a diverse portfolio. Contrary to these representations, the money received from new investors was not invested in a diverse portfolio; rather, funds collected from new investors was used largely to pay returns to previous investors. In fact, Horizon was able to pay guaranteed returns to investors only by raising and using new investor money. As a part of the scheme, Woods caused Horizon to issue monthly statements to investors that fraudulently misled investors by failing to disclose that the Horizon investments had not generated a positive percentage of return sufficient to cover the interest. Although Woods did not use the money to live a lavish lifestyle, he diverted investor funds to pet projects not approved by the investors, such as purchasing an interest in a baseball team in his name. As of the end of July 2021, Horizon investors were owed more than $110,000,000 in principal investment amounts. Over 400 investors, residing in at least 20 different states, held investments in Horizon. Victims lost more than $49 million because of Woods’s scheme to defraud. Woods, 58, of Marietta, Georgia, was sentenced by U.S. District Judge Sarah E. Geraghty, to seven years, eleven months in prison to be followed by three years of supervised release. Woods was also ordered to pay restitution to the victims of his scheme. A hearing to set the restitution amount owed to victims has been scheduled for April 15, 2024, at 2:30 p.m., before Judge Geraghty. This case was investigated by the Federal Bureau of Investigation. The SEC provided valuable assistance. The SEC’s separate civil case is SEC v. Woods et al., No. 1:21-CV-03413-SDG (N.D. Ga.). Assistant U.S. Attorneys Angela Adams and Stephen H. McClain prosecuted the case. For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Miami man found guilty of murder in aid of racketeering

component: USAO - Florida, Southern

body_text: MIAMI – On Feb. 7, a Miami federal jury found a man guilty in a 23-count superseding indictment of murdering a man in aid of racketeering, assaulting a federal law enforcement officer, as well as of multiple counts of discharging a firearm in furtherance of a crime of violence, possessing a firearm and ammunition as a convicted felon, access device fraud and aggravated identity theft. On April 28, 2020, Geno St. Flerose, of Miami, Florida, a member of the “Everybody Eats,” “EBE” gang shot and killed the victim, who was driving by St. Flerose’s house after St. Flerose chased him for over four blocks, and fired approximately thirteen rounds into the victim’s car, striking him three times. The victim died before getting to the hospital. The victim was 22 years old at the time of his murder. Then, on June 17, 2020, a federal special agent was conducting surveillance in St. Flerose’s neighborhood when St. Flerose saw the agent’s car. St. Flerose ran into the street and fired multiple rounds at the agent’s car, penetrating it, but not striking the agent. Law enforcement agents also discovered that St. Flerose had hundreds of people’s personal identifiable information. Sentencing is scheduled for May 3 at 9:00 a.m. before U.S. District Judge Beth Bloom. St. Flerose faces up to life in prison, criminal fines of up to $250,000 as to each count, and a period of supervised release of up to life. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, made the announcement. FBI Miami and USSS Miami investigated the case. Assistant U.S. Attorneys Christine Hernandez and Yara Dodin are prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture. 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 21-cr-20149. ###


title: Canyon Country Man Sentenced to 20 Years in Federal Prison for Producing Child Sexual Abuse Material

component: USAO - California, Central

body_text: LOS ANGELES – A Santa Clarita man who is a former Navy SEAL was sentenced today to 20 years in federal prison for producing child sexual abuse material (CSAM) for surreptitiously filming nude minor victims with hidden cameras in a residential setting. Robert Quido Stella, 51, of Canyon Country, was sentenced by United States District Judge George H. Wu. At the conclusion of a four-day trial in May 2023, a jury found Stella guilty of three counts of production of child pornography. In April 2023, prior to trial, Stella pleaded guilty to access with intent to view child pornography and two counts possession of child pornography. In 2021, Homeland Security Investigations (HSI) received a tip that Stella had accessed a dark web child pornography website. On July 15, 2021, agents found collections of CSAM on Stella’s computer and two external hard drives. Stella concealed some of the collections in digital folders structures bearing misleading titles such as “federal contracts” and “tax returns.” During the investigation, HSI agents also found hidden cameras that Stella placed, including one disguised as a USB charging block. According to evidence presented at trial, Stella used that hidden camera to film his minor victims as they undressed to shower and used the bathroom. HSI later located approximately 17 videos and over 100 screenshots from those videos of minor victims naked and partially undressed. Stella hid these images under multi-level digital folder structures on a hard drive bearing misleading titles such as “course work.” Stella has been in custody since his arrest in July 2021. HSI investigated this matter. Assistant United States Attorneys Catharine A. Richmond and Lyndsi C. Allsop of the Violent and Organized Crime Section prosecuted this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Justice Department’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: Fort Bend man sentenced for receiving military training from a designated foreign terrorist organization

component: USAO - Texas, Southern

body_text: HOUSTON - A 34-year-old resident of Sugar Land has been ordered to federal prison for his conviction related to the Islamic State of Iraq and al-Sham (ISIS), announced U.S. Attorney Alamdar S. Hamdani. Warren Christopher Clark pleaded guilty Oct. 10, 2023. U.S. District Judge George C. Hanks Jr. has now ordered Clark to serve 120 months in federal prison to be immediately followed by a lifetime of supervised release. In handing down the sentence, the court imposed a terrorism enhancement, noting how Clark’s criminal and irresponsible behavior betrayed the values of this country and that he hoped Clark served every second of his sentence. “In the interests of national security, our laws prohibit Americans from receiving military training from designated foreign terrorist organizations. Warren Clark ran afoul of those laws when he illegally crossed the border into Syria and underwent military training from ISIS, a brutal terrorist organization,” said Hamdani. “Thanks to international partnerships, Clark was brought back to the United States to face the consequences for his crimes in a Southern District of Texas courtroom.” “By seeking and receiving military training from a foreign terrorist organization, Clark, a former teacher, betrayed his nation and allied himself with one of the most violent U.S. adversaries,” said Special Agent in Charge Douglas Williams of the FBI Houston field office. “Protecting the American people from terrorism is the FBI’s number one priority. As the lead U.S. agency for combating international and domestic terrorism, the FBI continues to work with our partners and use all necessary resources to get ahead of the threats and protect our communities, especially as the threat is constantly evolving.” As part of his plea, Clark admitted knowing ISIS was a foreign terrorist organization. Regardless, he traveled overseas and receiving military training from them. Clark admitted he illegally traveled from Turkey into Syria where he took mandatory religious and military training. In correspondence to his family, Clark indicated he was living happily abroad and would not return to the United States unless “the Islamic State conquers the US,” noting he thought he would be imprisoned here if he did come back. He later called himself a citizen of the Islamic State and renounced his U.S. citizenship. Clark has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The FBI Joint Terrorism Task Force and police departments in Houston and Sugar Land conducted the investigation. Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel prosecuted the case along with Trial Attorney Michael J. Dittoe of the Department of Justice Counter Terrorism Section.


title: New Hampshire Man Who Harassed and Intimidated Journalists Pleads Guilty

component: USAO - Massachusetts

body_text: BOSTON – A New Hampshire man pleaded guilty today in federal court in Boston to his role in a conspiracy to harass and intimidate a journalist employed by New Hampshire Public Radio (NHPR) and the journalist’s parents. Michael Waselchuck, 36, of Seabrook, N.H., pleaded guilty to conspiracy to commit stalking through interstate travel and the use of a facility of interstate commerce before U.S. District Court Judge Indira Talwani who scheduled sentencing for May 10, 2024. Waselchuck was arrested and charged by criminal complaint in June 2023 along with co-conspirators Tucker Cockerline and Keenan Saniatan. The defendants were subsequently indicted by a federal grand jury along with Eric Labarge in September 2023 . Cockerline previously pleaded guilty to his role in the conspiracy in December 2023 . According to the charging documents, an NHPR journalist (Victim 1) published an article in March 2022 detailing allegations of sexual and other misconduct by a former New Hampshire businessperson, identified in the charging document as Subject 1. Another NHPR journalist (Victim 2) also contributed to the article, which appeared on NHPR’s website during and after March 2022. In response to this reporting, Labarge — who is alleged to be a close personal associate of Subject 1 — Saniatan, Cockerline and Waselchuck allegedly agreed to harass and intimidate Victims 1 and 2 and their immediate family members. Among other things, the indictment alleges that: On or about April 22, 2022, Labarge solicited Cockerline to vandalize Victim 1’s former residence in Hanover, N.H., using a brick and red spray paint. Thereafter, on the evening of April 24, 2022, Cockerline spraypainted the word “C*NT” in large red letters on the front door and allegedly threw a brick through an exterior window of the home; On or about April 22, 2022, Saniatan allegedly agreed to vandalize Victim 2’s home in Concord, N.H., and Victim 1’s parents’ home in Hampstead, N.H., using large rocks and red spray paint. Thereafter, on the evening of April 24, 2022, Saniatan allegedly spraypainted the word “C*NT” in large red letters on the front door and threw a large rock at the exterior of Victim 2’s home; and he allegedly threw a softball-sized rock through a front exterior window and spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home; On or about May 18, 2022, Labarge allegedly solicited Cockerline to vandalize Victim 1’s parents’ home in Hampstead, N.H., and Victim 1’s home in Melrose, Mass., using bricks and red spray paint. Cockerline, in turn, allegedly recruited Waselchuck to vandalize Victim 1’s residence; and On the evening of May 20, 2022, Cockerline spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home, and left a brick on the ground near the front door. Several hours later, Waselchuck allegedly threw a brick through an exterior window of Victim 1’s home and painted the phrase “JUST THE BEGINNING” in large red letters on the front of the house. Each charge in the indictment carries a maximum sentence of up to five years in prison, three years of supervised release, a $250,000 fine and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Valuable assistance was provided by the Concord, Hampstead and Hanover, New Hampshire Police Departments, the Melrose, Massachusetts Police Department and the United States Attorney’s Office for the District of New Hampshire. Assistant U.S. Attorneys Jason A. Casey and Torey B. Cummings of the Criminal Division are prosecuting the case. The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Clinton, Indiana, Woman Charged with Murder-for-Hire

component: Department of Justice

body_text: URBANA, Ill. – A federal grand jury returned an indictment on February 6, 2024, charging a Clinton, Indiana, woman, Davetta Cox, 31, with an alleged murder-for-hire scheme occurring from January 16, 2024, through January 26, 2024. The indictment alleges in two counts that Cox sought to hire someone she believed to be a hitman to kill another individual. The indictment further alleges that Cox offered $6,000 for the murder of this individual. Cox was arrested in Charleston, Illinois, on January 26, 2024, and has remained in the custody of law enforcement in Macon County, Illinois. If convicted, the maximum statutory penalties for the alleged crimes charged are up to 20 years imprisonment; up to a $500,000 fine; and up to a six-year term of supervised release. Agencies participating in the investigation include the Federal Bureau of Investigation, Springfield Field Office, and the Illinois State Police. Assistant U.S. Attorney Rachel Ritzer is representing the government in the prosecution. Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.


title: Stewardson, Illinois, Woman Pleads Guilty to Wire Fraud

body_text: URBANA, Ill. – A Stewardson, Illinois, woman, Julie R. Williams, 54, pleaded guilty on February 7, 2024, to four counts of wire fraud. Sentencing for Williams has been scheduled on June 10, 2024, at the U.S. Courthouse in Urbana, Illinois. In court before U.S. District Judge Colin S. Bruce, Williams admitted to stealing money from her former employer, Charleston-Mattoon-based Apex Property Management, from October 2014 through February 2016. Williams further admitted to making materially false entries into the company’s software system to conceal her thefts. Williams remains on bond pending sentencing. Williams faces statutory penalties of up to 80 years’ imprisonment; up to a $1,000,000 fine; and up to a twelve-year term of supervised release. The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, and the Mattoon Police Department. Assistant U.S. Attorneys Rachel Ritzer and William Lynch are representing the government in the prosecution.


title: Ten Defendants Arrested on Federal Indictments Related to a Multi- Million Dollar Fraud Scheme

component: USAO - Maryland

body_text: Baltimore , Maryland – As a result of a law enforcement operation on February 7, 2024, 10 defendants were arrested at locations throughout Maryland and three search warrants were executed related to an alleged money laundering conspiracy involving more than $9.5 million in proceeds from fraud schemes. Law enforcement agents from the Homeland Security Investigations Mid-Atlantic El-Dorado Task Force, the Environmental Protection Agency Office of Inspector General, IRS Criminal Investigation, and the Defense Criminal Investigative Service participated in yesterday’s searches and arrests. Additional defendants are currently fugitives. A federal grand jury in Maryland returned two indictments last year that were unsealed upon the arrests of the defendants. The following defendants were arrested in connection with these two cases. Case Number: 23-CR-411 (MJM) 1. Adanegbe Gift Osemwenkhae, age 38, of Upper Marlboro, Maryland; 2. Emily Gil Arias, age 26, of Silver Spring, Maryland; 3. Fatoumata Boiro, age 30, of Largo, Maryland; 4. Lakeisha Parker, age 31, of Baltimore; 5. Martin Ogisi, age 35, of Severn, Maryland; 6. Blondel Ndjouandjouaka, age 30, of Silver Spring, Maryland; 7. Kevin Colon, age 33, of Curtis Bay, Maryland; and 8. Lorena Perez Herrera, age 27, of Silver Spring, Maryland. Case Number: 23-CR-304 (MJM) 9. Yahye Sowe, a/k/a “Cash,” age 40, of Largo, Maryland; and 10. Areal El-Lovieta Harris, age 24, of Hanover, Maryland. The defendants had initial appearances yesterday in U.S. District Court in Baltimore before U.S. Magistrate Judge Charles Austin. Osemwenkhae, Ogisi, and Ndjouandjouaka consented to detention, Sowe and Boiro were detained pending detention hearings scheduled for February 9, 2024, and the remaining defendants were released on conditions under the supervision of U.S. Pretrial Services. The indictments were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office; Special Agent in Charge Nicolas Evans of the Environmental Protection Agency, Office of Inspector General (“EPA OIG”); and Special Agent in Charge Ken DeChellis, of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service - Cyber Field Office (“DCIS”). According to the indictments, the defendants allegedly created and used limited liability companies and other shell businesses to open bank accounts on which the shell entities were listed as the account holders. Members of the conspiracy had signature authority for the bank accounts, at times using aliases or stolen identities. The defendants and their co-conspirators used the bank accounts to receive money obtained from the fraud victims. The victims included government agencies, organizations, and companies, such as an environmental trust, an urban redevelopment program, a medical center, a transportation and logistics company, a school district, a college, and a county government, among others. Some of the co-conspirators obtained and used forged and counterfeited identification documents, including documents bearing the names of individual identity theft victims. As detailed in the indictments, the victims were deceived into sending money to the conspirators’ bank accounts based on false pretenses, such as being provided with false bank account information for legitimate vendor payments and false wire transfer information for legitimate transactions. After the fraudulently obtained funds were received in the bank accounts, the defendants and their co-conspirators allegedly engaged in financial transactions to conceal and disguise the nature and source of the money through cash withdrawals, the purchase of cashier’s checks, debit card transactions, and by transferring funds to other bank accounts controlled by the conspirators. According to the indictments, the defendants obtained and used a portion of the fraud proceeds for themselves. The defendants allegedly used some of the fraud proceeds to purchase vehicles, some of which were shipped or attempted to be shipped outside the United States. As alleged in the indictment, the defendants also engaged in international financial transactions and caused fraud proceeds to be sent outside the United States. The indictment further alleges that the defendants in case 23-CR-411 (MJM) and their co-conspirators collectively conducted and attempted to conduct financial transactions involving more than $9.5 million in fraud proceeds. The indictment in 23-CR-304 (MJM) alleges that the defendants and their co-conspirators conducted and attempted to conduct financial transactions involving more than $2 million in fraud proceeds. If convicted, the defendants each face a maximum sentence of 20 years in federal prison for the conspiracy and for each count of money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. United States Attorney Erek L. Barron commended the HSI Mid-Atlantic El Dorado Task Force, IRS-CI, EPA-OIG, and DCIS for their work in the investigation and recognized the Anne Arundel County, Prince George’s County and Montgomery County Police Departments for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Stephanie Williamson, who are prosecuting these cases. He also recognized the assistance of the Paralegal Specialist Joanna B.N. Huber. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Pearl River Man Pleads Guilty to Possession With Intent to Distribute 26 Grams of Methamphetamine

component: Drug Enforcement Administration (DEA)

body_text: Jackson, Miss. – A Neshoba County man pleaded guilty to possession of 26 grams of methamphetamine with intent to distribute in the Pearl River Community of the Mississippi Band of Choctaw Indians. According to court documents, in April of 2022, Marcus Tubby, Jr., 31, possessed 26 grams of methamphetamine with intent to distribute. Tubby was indicted by a federal grand jury in September 2023. Tubby is scheduled to be sentenced on May 7, 2024, and faces a maximum penalty of twenty years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Todd Gee, Acting Special Agent in Charge Steven Hofer of the Drug Enforcement Administration, and Whitney Woodruff, Regional Agent in Charge of the Bureau of Indian Affairs, made the announcement. The case was investigated by the Choctaw Police Department, the U.S. Department of Interior Bureau of Indian Affairs, and the Drug Enforcement Administration. Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.


title: Paterson Police Officer Admits Civil Rights Violations

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Paterson Police Department officer today admitted using excessive force during two separate arrests, U.S. Attorney Philip R. Sellinger announced. Kevin Patino, 32, of Wayne, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a superseding information charging him with two counts of violating an individual’s civil rights. According to documents filed in this case and statements made in court: On Nov. 26, 2020, Patino responded to a call for backup from another officer who was attempting to disperse a crowd of people on Main Street in Paterson. Patino observed the other officer engaged in a verbal exchange with the first victim. Patino directed the victim to move away from the officer, but the victim initially declined to do so. Patino then pushed the victim away from the other officer and the victim walked away from Patino. Patino also began to walk away but then returned to confront the victim, who did not pose a danger to Patino or anyone else, and pushed the victim into the street. Patino then grabbed the victim, threw the victim to the ground, and proceeded to repeatedly strike the victim while the victim was on the ground. Another police officer intervened while Patino was striking the victim and handcuffed the victim. On Dec. 14, 2020, Patino responded with another officer in an unmarked police vehicle to a call regarding a suspicious person on Madison Avenue in Paterson. Patino, along with other officers, encountered an individual who appeared to be the person described in the call. While the officers were engaged with this individual, the second victim walked towards the officers and observed their interaction with the individual, before walking away. After the officers ended their encounter with the individual, Patino and another officer drove away in their unmarked police vehicle. The officer who was driving the unmarked vehicle then made a sharp turn towards the second victim, who was walking down the street, and parked the vehicle. Patino got out of the vehicle and struck the victim, who did not pose a danger to Patino or anyone else, in the face and body several times. After the other officer grabbed hold of the victim and brought the victim to the ground, Patino continued to repeatedly strike the victim. Patino agreed that in each instance his repeated use of force against each victim was unreasonable and excessive, in violation of the Fourth Amendment to the United States Constitution. Each violation of civil rights count carries a maximum penalty of one year in prison and a maximum fine of $100,000. Sentencing is scheduled for July 23, 2024. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the New Jersey Attorney General’s Office, under the direction of Attorney General Matthew J. Platkin; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the North Jersey Public Corruption Task Force composed of members of FBI and New Jersey State Police. The government is represented by Assistant U.S. Attorneys Bernard J. Cooney of the Criminal Division and the Civil Rights Division’s Criminal Civil Rights Task Force, and Joseph Gribko, Deputy Chief of the U.S. Attorney’s Office’s Civil Rights Division. patino.sinformation.pdf


title: Rochester man going to prison on fentanyl charge

component: USAO - New York, Western

body_text: ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Treshon Alexander, 31, of Rochester, NY, who was convicted of possession with intent to distribute 400 grams of more of fentanyl, was sentenced to serve 15 years in prison and 10 years supervised release by U.S. District Judge Frank P. Geraci, Jr. Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that in February 2015, Alexander was convicted on federal charges of conspiracy to manufacture, possess with intent to distribute, and distribute 280 grams or more of crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Alexander was sentenced to serve 108 months in prison and five years’ supervised release. On February 16, 2023, while on supervised release, Alexander was arrested at his Apollo Drive residence in Greece, when members of the U.S. Probation Office conducted a search there and at a Chippendale Road residence, which Alexander used to store narcotics. During the searches, investigators seized $6,654.00 in U.S. currency, multiple cell phones, materials for processing and packaging narcotics for distribution, over 2000 rounds of ammunition, a money counter, and vacuum sealer. In addition, approximately 1,394 grams of fentanyl and 504 grams of cocaine were also seized. The sentencing was the culmination of an investigation by the U.S. Probation Office, under the direction of Chief Probation Officer Timothy Englert, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito. Additional assistance was provided by the New York State Attorney General’s Office, under the direction of Attorney General Letitia James. # # # #


title: San Jose Man Charged In Alleged Conspiracy To Steal High-End Bicycles In Bay Area For Resale In Mexico

component: USAO - California, Northern

body_text: SAN JOSE – A federal grand jury has indicted Victoriano Romero, charging him with conspiracy and related charges in connection with an alleged scheme to steal high-end performance bicycles from residents in the Bay Area and transport the bicycles to Mexico for resale. According to the indictment, filed January 23, 2024, and unsealed earlier today, Romero, 53, from San Jose, participated in a complex international fencing operation that involved stealing bicycles from homes in San Francisco and Redwood City, Calif., during nighttime burglaries, and then transporting the stolen bicycles to Jalisco, Mexico, for resale. The indictment alleges Romero owns an automotive shop in San Jose where he received the stolen bicycles, took pictures of them, disassembled them, packaged them for delivery, and then had them transported to a co-conspirator in Mexico. Romero allegedly sent the pictures to his co-conspirator who used the pictures for online advertisements to sell the bicycles. Further, the indictment alleges Romero received a share of the profits from the international bicycle fencing scheme. The indictment contains a description of nine of the bicycles that were stolen between April 2020 and April 2021. The bicycles, ranging in value from $3,000 to $9,000, included notable manufacturers such as a Serotta Titanium bicycle, a Bulls Grinder Evo bicycle, and a Cervelo C3 Carbon bicycle. The indictment also describes additional details about the participation of Romero’s alleged co-conspirator in the scheme. For example, the indictment alleges the unindicted co-conspirator posted pictures of the stolen bicycles on a Facebook sales page using a virtual private network (or similar method) so that only persons in Mexico could see that the bicycles were for sale. In addition, the indictment describes how the co-conspirator reassembled the bicycles in Mexico before selling them and maintained a ledger listing the profits from the sales of the bicycles. In sum, Romero is charged with one count of conspiracy to transport stolen goods in foreign commerce, in violation of 18 U.S.C. §§ 371 and 2314, and two counts of transportation of stolen goods in foreign commerce, in violation of 18 U.S.C. §§ 2314 and 2. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory penalty for the conspiracy charge is five years in prison. The maximum statutory penalty for the substantive transportation charges is 10 years, per count. In addition, as part of any sentence, the court could order defendant to serve an additional term of supervised release to begin after a prison term, additional fines, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Romero made his initial federal court appearance to face the charges this morning before U.S. Magistrate Judge Peter H. Kang. He was released on bond. His next scheduled court appearance is scheduled for April 10, 2024, before P. Casey Pitts, United States District Judge, for status. The announcement was made by U.S. Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. Assistant U.S. Attorney Michael Lagrama is prosecuting the case. The prosecution of this case is the result of an investigation by the FBI and the San Francisco Police Department.


title: Florida Man Admits Role in Multimillion-Dollar Health Care Kickback Scheme

body_text: NEWARK, N.J. – A Florida man today admitted his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, Attorney for the United States Vikas Khanna, District of New Jersey, and U.S. Attorney Markenzy Lapointe, Southern District of Florida, announced. Kareem Memon, 34, of Coral Springs, Florida, pleaded guilty before U.S. District Court Judge Raag Singhal in the Southern District of Florida to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute. According to documents filed in the case and statements made in court: Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries. Memon and his conspirators caused losses to Medicare in excess of $11 million. On Sept. 21, 2023, Memon pleaded guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal. Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. At the time of Memon’s arrest he was a felon and found to be unlawfully in possession of an arsenal of 12 firearms and ammunition. The health care fraud conspiracy charge is punishable by a maximum of 10 years in prison and the kickback conspiracy charge is punishable by a maximum of five years in prison. Both charges are also punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 26, 2024. Attorney for the United States Khanna and U.S. Attorney Lapointe credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s guilty plea. The government is represented by Assistant U.S. Attorney Matthew Specht of District of New Jersey and Assistant U.S. Attorney Robin Waugh of the Southern District of Florida. memon.information.pdf


title: Barred Broker Dealer Sentenced to 45 Months in Prison for $1.2 Million Investment Fraud and Fraudulent $96,000 CARES Act Loan

body_text: TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 45 months for defrauding 14 victims of more than $1.2 million and fraudulently obtaining a loan of approximately $96,000 meant for small businesses during the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced. Anthony Mastroianni Jr., 49, of Manalapan, New Jersey, pleaded guilty on Sept. 13, 2023, before U.S. District Judge Robert Kirsch to an information charging him with two counts of wire fraud. Judge Kirsch imposed sentence today in Trenton federal court. “This defendant admitted defrauding investors by taking the money they entrusted to him and using it for his personal benefit, rather than investing it. He did this after already having agreed never to work as broker. Investors need to know their money is being used for their best interest, and not to line the pockets of criminals. Mastroianni is now realizing the price that must be paid for stealing from innocent victims.” U.S. Attorney Philip R. Sellinger According to documents filed in this case and statements made in court: In 2016, Mastroianni consented to being permanently barred by the Financial Industry Regulatory Authority (FINRA), which prohibited him from acting as a broker or intermediary in securities transactions. Despite that debarment, Mastroianni admitted that from January 2017 to August 2022 he defrauded victim investors, many of whom were senior citizens, by falsely and fraudulently claiming that he would generate large investment profits for them through his company, Global Business Development & Consulting Corporation. Instead of investing the money as promised, Mastroianni used victim funds on personal expenses. In total, Mastroianni defrauded 14 victims of approximately $1.2 million. Mastroianni also exploited the ongoing global pandemic by submitting a false and fraudulent application to obtain approximately $96,300 from a federal COVID-19 emergency relief loan meant for distressed small businesses. As with his investment fraud scheme, Mastroianni misused the loan proceeds to make personal purchases and cash withdrawals. In addition to the prison term, Judge Kirsch also sentenced Mastroianni to three years of supervised release and ordered restitution of $1.3 million. U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark, with the investigation leading to today’s sentencing. The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.


title: Essex County Man Admits Wire Fraud in $470,000 Kickback Scheme Involving Jersey City Condo Complex

body_text: CAMDEN, N.J. – An Essex County, New Jersey, man today admitted conspiring with two others in a kickback scheme to defraud the owner of a condominium complex in Jersey City of $470,000, U.S. Attorney Philip R. Sellinger announced. Jonathan Smith, 56, of Montclair, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden to an information charging him with one count of conspiracy to commit wire fraud. Smith’s conspirator, Nathaniel Obedos, pleaded guilty on July 6, 2023, before Judge Williams and is awaiting sentencing. Ranaldo Bennett, Smith’s other conspirator, was arrested and charged for the same conduct, and his case is still pending. According to the publicly filed documents and statements made in Court: From November 2018 through July 2020, Smith conspired with Bennett and Obedos to engage in a kickback scheme to defraud the owner of the condominium complex. Bennett was the complex’s lead property manager and Smith was its superintendent. Bennett and Smith steered repair and maintenance work to Obedos and his company. Bennett and Smith requested and received kickbacks from Obedos. To fund these kickbacks, Bennett and Smith falsified invoices that grossly inflated the value of Obedos’s work. Relying on those fake invoices, the complex paid Obedos the inflated prices, and Obedos then used the excess money to pay Bennett and Smith kickbacks. The complex paid Obedos and his company over $1 million for work that was actually valued at $500,000. Obedos used the overpayments to pay $460,000 in kickbacks to Bennett and approximately $30,000 in kickbacks to Smith. The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing for Smith is scheduled for June 10, 2024. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the today’s guilty plea. The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit. The charges and allegations against Bennett are merely accusations, and he is presumed innocent unless and until proven guilty. smith.information.pdf


title: Taholah, Washington man sentenced to 30 months in prison for sex offense against minor

component: USAO - Washington, Western

body_text: Tacoma – A 21-year-old Taholah, Washington, man was sentenced today in U.S. District Court in Tacoma to 30 months in prison for abusive sexual contact in connection with the sexual assault of a teenager on the Quinault Nation reservation, announced U.S. Attorney Tessa M. Gorman. Jerimiah McCrory was arrested in July 2021, after a teen victim reported McCrory raped her after attending a gathering on the Quinault reservation. The investigation by Quinault Nation Police and the FBI revealed that other teens also had been sexually assaulted. U.S. District Judge Tiffany M. Cartwright rejected a defense request for a time-served sentence, saying the forcible rape followed an escalating pattern of the sexual abuse of others. According to the plea agreement, the sexual assault of one teenager occurred on April 12, 2021, when McCrory and the victim were visiting a home on the Quinault Nation reservation. McCrory is a member of the Quinault Nation. McCrory admitted that he sexually assaulted the teen and pleaded guilty to abusive sexual contact in connection with that assault in October 2023. As part of the plea agreement, McCrory admitted to two other sexual assaults against teenage victims in 2019. Those facts were considered by the judge at sentencing as relevant conduct. McCrory will be on 10 years of supervised release following prison and will be required to register as a sex offender. The case was investigated by the Quinault Nation Police and the FBI. The case is being prosecuted by Assistant United States Attorneys J. Tate London and Rebecca S. Cohen. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.


title: Readout: Justice Department’s Procurement Collusion Strike Force Holds Summit in Los Angeles

body_text: LOS ANGELES – The United States Attorney’s Office for the Central District of California, the Justice Department’s Antitrust Division, and the Procurement Collusion Strike Force (PCSF) today hosted a summit where procurement officials and law enforcement partners from across Southern California convened to discuss emerging threats and raise awareness. United States Attorney (USA) Martin Estrada, Deputy Assistant Attorney General (DAAG) Manish Kumar of the Justice Department’s Antitrust Division, PCSF Director Daniel Glad and law enforcement partners were joined by representatives from over a dozen state and local government agencies. During the summit, USA Estrada and DAAG Kumar reflected on the PCSF’s growth and success since its inception in 2019. They also detailed additional resources the department has dedicated to combat procurement collusion, emphasized the importance of law enforcement partnerships and a whole-of-government response to persistent threats in government spending and sharpened the PCSF’s focus on the challenges, risks and opportunities posed by increased federal spending in Southern California. Summit participants discussed the importance of defending critical programs under the Infrastructure Investment and Jobs Act, the Inflation Reduction Act of 2022 and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 from procurement collusion risk. USA Estrada and DAAG Kumar also outlined the ways that state and local government agencies can partner with the PCSF to address these emerging threats. Summit participants included representatives from the FBI; Naval Criminal Investigative Service; the Department of Commerce, Office of Inspector General; the Department of Veterans Affairs, Office of Inspector General; and the Defense Criminal Investigative Service. The PCSF is the Justice Department’s coordinated, national law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement, grant and program funding at all levels of government – federal, state and local. The PCSF is comprised of the Antitrust Division, multiple U.S. Attorneys’ Offices around the country, the FBI and the Inspectors General for multiple federal agencies. Since its inception in November 2019, the PCSF has opened more than 100 criminal investigations and trained more than 31,000 people. In that time, the PCSF and Antitrust Division have investigated and prosecuted over 65 companies and individuals involving over $500 million worth of government contracts. The summit marks the department’s continued support of the PCSF as it enters its fifth year. To learn more about the PCSF, or to report collusion affecting government contracts, please visit www.justice.gov/atr/procurement-collusion-strike-force . Assistant United States Attorney Jeff Mitchell and Antitrust Division Trial Attorneys Nolan Mayther and Ken Sakurabayashi are the PCSF coordinators for the Central District of California.


title: California Woman Pleads Guilty to Nationwide Marijuana Trafficking Conspiracy

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Ruby Ledesma, age 25, of Fresno, California, pled guilty today to conspiring to distribute marijuana and tetrahydrocannabinols (THC). United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement. Ledesma admitted that she was a member of a marijuana and THC trafficking organization that shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region, between 2016 and June 2022. The marijuana and THC was shipped through UPS and FedEx from a shipping store, Fast Pack & Ship, in Fresno. Fast Pack & Ship was owned by Ledesma’s brother, Sammy Olague, from 2016 through June 2018, when he sold the business to Nehemiah Fane, aka “Neil.” Olague received a portion of the purchase money for Fast Pack & Ship from Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” and James Tyrell Daniels, aka “Red” and “Ghost,” helped manage Fast Pack & Ship when it was owned by Fane. In April 2020, Fane transferred ownership of Fast Pack & Ship to Singletary’s partner, McKenzie Merrialice Coles, aka “Kenzie,” who operated Fast Pack & Ship through M.M.M.C. Management, Inc. The defendant worked with Olague, Fane, Daniels, Singletary and Coles to ship the packages of marijuana and THC. Ledesma also arranged for Singletary to obtain distribution-quantities of THC “edibles,” which Singletary, in turn, sold. Ledesma was charged in an indictment with Singletary, Coles, Olague, Fane, Daniels and 18 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Singletary, Coles, Fane, and Daniels have pled not guilty and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations. In addition to Ledesma, Olague and five other defendants, Rosemary Coles , Latrice Mumphrey , Jazell Shuler , Victor Turner , and Kristle Walker , previously pled guilty and are pending sentencing. The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: Troy Man Pleads Guilty to Unemployment Insurance Fraud

body_text: ALBANY, NEW YORK – Christopher Ward, a/k/a “Reek,” age 45, of Troy, New York, pled guilty today to conspiring to defraud the New York State Department of Labor (NYSDOL) by obtaining unemployment insurance benefits under the name of another person, including benefits funded by the federal government in response to the COVID-19 pandemic. The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, North East Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG). Ward admitted that he provided Carl J. DiVeglia III with the personal identifying information of another individual, which DiVeglia used to file a false claim via the NYSDOL website. Ward further admitted that as a result of the fraudulent application submitted by DiVeglia, the NYSDOL paid $15,006 in unemployment insurance benefits. As part of his plea agreement, Ward agreed to pay $15,006 in restitution to the State of New York. DiVeglia previously pled guilty to fraudulently obtaining $1.6 million in unemployment insurance benefits as part of the scheme. Charges against Ward’s three co-defendants, his brother Todd Ward, Rocco Resciniti and Jamaine Myers, are still pending . The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty. Ward faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on June 27, 2024 by United States District Judge Glenn T. Suddaby. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The FBI and USDOL-OIG are investigating this case, with assistance from the NYSDOL Office of Special Investigations, and Assistant U.S. Attorneys Joseph S. Hartunian and Joshua R. Rosenthal are prosecuting the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Schoharie County Man Sentenced to 188 Months for Possessing Child Pornography

body_text: ALBANY, NEW YORK – John C. Hotaling, age 62, of Esperance, New York, was sentenced today to serve 188 months (15 years and eight months) in federal prison for possessing child pornography. The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Acting Superintendent Steven G. James. As part of his earlier guilty plea on the eve of trial, Hotaling admitted that in 2020, he possessed child pornography images, some of which he created by photoshopping the faces of children onto nude adult bodies engaged in sexually explicit conduct, a process known as “morphing.” Hotaling was on supervised release at the time for a 2009 conviction for engaging in the same conduct. He also admitted to violating his terms and conditions of supervised release and was sentenced to an additional 12 months in prison for the supervised release violation. United States District Judge Glenn T. Suddaby ordered Hotaling to serve the 12 months consecutively to the 188-month term imposed for new criminal conduct. Judge Suddaby also imposed a life term of supervised release to begin upon Hotaling’s completion of his prison term, and ordered Hotaling to forfeit the laptop he used to commit the offenses. Hotaling must also register as a sex offender upon his release from prison. The FBI’s Child Exploitation Task Force, the New York State Police and the United States Probation Office investigated this case. Assistant U.S. Attorneys Douglas Collyer, Ashlyn Miranda and Rick Bellis prosecuted the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Attorney General Merrick B. Garland Honors Local Attorneys As Part Of 2023 Attorney General’s Awards

body_text: SAN JOSE – Attorney General Merrick B. Garland announced the recipients of the 70th and 71st Attorney General’s Awards, honoring Justice Department employees and others for extraordinary contributions to the enforcement of our nation’s laws. Recipients from both 2022 and 2023 were selected from a group of more than 800 nominees. Four Assistant United States Attorneys serving in the Northern District of California were among the persons who received awards during the ceremony in Washington, D.C. “Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” said Attorney General Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country.” “I am extremely proud to see the hard work of this team recognized by Attorney General Garland,” said U.S. Attorney Ismail Ramsey. “The guilty verdicts and sentencings in the Theranos case could not have been achieved without the dedicated efforts of team members who spent many hours reviewing millions of pages of documents, organizing many skillful presentations, and delivering careful arguments in furtherance of justice for the people of the United States. The recognition is well-deserved.” The awards presented include the John Marshall Award, named for the fourth Chief Justice of the United States. The award recognizes outstanding professional achievement by attorneys of the Justice Department. Recipients of the 2023 John Marshall Award for Trial of Litigation include Northern District of California Assistant U.S. Attorneys Robert S. Leach, Kelly I. Volkar, John C. Bostic, and Jeffrey D. Nedrow for their work in United States v. Holmes and United States v. Balwani. These prosecutions were also the product of outstanding work by former Assistant U.S. Attorney Jeff Schenk, the Federal Bureau of Investigation (in particular, Special Agent Mario Scussel and Special Agent Adelaida Hernandez), the U.S. Postal Inspections Service (in particular, Special Agent Christopher McCollow), and the U.S. Food and Drug Administration’s Office of Criminal Investigations (in particular, Special Agent in Charge George Scavdis), as well as the assistance of Madeline Wachs, Lakisha Holliman, Sara Slattery, Elise Etter, Susan Kreider, Lynette Dixon, Sahib Kaur, and Leeya Kekona. These criminal cases arose from fraud committed by defendants Elizabeth A. Holmes and Ramesh “Sunny” Balwani in connection with Theranos, Inc., a now-defunct blood testing company based in Palo Alto and Newark, Calif. Each defendant was convicted in a separate trial, after which Holmes was sentenced to 135 months (11 years, 3 months) in federal prison for defrauding investors in Theranos of hundreds of millions of dollars and Balwani was sentenced to 155 months (12 years, 11 months) in federal prison for fraud that risked patient health by misrepresenting the accuracy of Theranos blood analysis technology and that defrauded Theranos investors. A list of all the recipients of the 70th and 71st Attorney General’s Awards can be found here .


title: Former Fremont Man Sentenced for Possession with Intent to Distribute Methamphetamine

component: USAO - Nebraska

body_text: United States Attorney Susan Lehr announced that Troy Brewer, 50, formerly of Fremont, Nebraska, was sentenced on February 8, 2024, in federal court in Lincoln, Nebraska, for possession with intent to distribute 5 grams or more of methamphetamine. Senior United States District Judge John M. Gerrard sentenced Brewer to 30 months’ imprisonment. There is no parole in the federal system. After Brewer’s release from prison, he will begin a 4-year term of supervised release. In the early morning hours of August 2, 2022, Brewer was in his vehicle when he was contacted by Fremont Police. Based upon their observations, the officers searched the vehicle and found a pill bottle near the driver’s door. Inside the bottle was 14 grams of actual methamphetamine. They searched the car further and found Ziploc baggies in the center console and a digital scale with drug residue on it inside a backpack. When Brewer pled guilty, he admitted he knew the drugs were in the vehicle and that he intended to distribute them. This case was investigated by the Dodge County Sheriff’s Office and the Fremont Police Department.


title: San Francisco Man Sentenced to Five Years for Transporting Drugs

body_text: United States Attorney Susan Lehr announced that Jose Alfredo Ek-Poot, 51, of San Francisco, California, was sentenced on February 8, 2024, in federal court in Lincoln, Nebraska, for possession of methamphetamine, cocaine, and marijuana with the intent to distribute. Senior United States District Court Judge John M. Gerrard sentenced Ek-Poot to 60 months’ imprisonment. There is no parole in the federal system. After Ek-Poot is released from prison, he will begin a four-year term of supervised release. On November 4, 2021, Ek-Poot, along with Esteban Dejesus Huerta Rocha and Ricardo Jiminez-Noveno, were traveling east on Interstate 80 near Grand Island when they were stopped by a trooper with the Nebraska State Patrol for driving at 87 mph in a 75-mph zone. Rocha was the driver, Jiminez-Noveno was the front seat passenger, and Ek-Poot was seated in the back. When the trooper approached the car, he could smell the odor of marijuana coming from the car and he saw a bag of marijuana inside the car. When troopers searched the car, a mason jar containing marijuana was located in the front passenger door compartment. A backpack containing a methamphetamine pipe was discovered on the front passenger floorboard. Rocha was searched and he had a small bag of cocaine in his pocket. In the trunk, troopers found approximately 8.5 pounds of methamphetamine, 5.5 pounds of marijuana, and 10.8 ounces of cocaine. Ek-Poot pleaded guilty on November 3, 2023. Jiminez-Noveno pleaded guilty on August 30, 2022, and was sentenced on November 22, 2022, to a 156-month term of imprisonment, and a 5-year term of supervised release. Rocha pleaded guilty on July 6, 2022, and was sentenced on October 7, 2022, to a 135-month term of imprisonment, and five years of supervised release. This case was investigated by the Nebraska State Patrol.


title: Omaha Man Sentenced in Firearms and Drug Trafficking Conspiracy Case

body_text: United States Attorney Susan Lehr announced that Keland A. Strong, 21, of Omaha, Nebraska, was sentenced on February 8, 2024, in federal court in Omaha for his participation in a firearms conspiracy in the furtherance of drug trafficking. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Strong to 72 months’ imprisonment. There is no parole in the federal system. After Strong’s release from prison, he will begin a 3-year term of supervised release. Co-defendant Rodolfo Falcon owned a house that was the central location for the distribution of marijuana, marijuana derivatives, and cocaine. Falcon rented that house out to several younger drug dealers including Kenneth Blair, Alexis Bernal-Lopez, and Keland Strong. The Federal Bureau of Investigation Safe Streets Task Force performed a search of the residence on November 30, 2021, and recovered cocaine, marijuana, currency, drug paraphernalia, and several firearms. Falcon, who has a distinctive tattoo on his hand, was seen in photos posing with firearms. One of the firearms shown in the picture was recovered from the residence. Agents also located a stolen firearm and AR15 rifle. At the time of the search, Blair was in the basement of the residence along with two apparent narcotics customers. Drugs and cash were also recovered from that location. Strong was located in an upstairs room that contained numerous firearms. Falcon lived on the main level of the home where agents recovered cash, cocaine. and personal identification documents. Evidence of significant marijuana distribution such as wrappers for large quantities of marijuana were also recovered. This along with the text messages between the group members revealed that the home was being used as a main distribution hub and that Majok Bethow, Bernal-Lopez, Strong, and Blair all worked together to sell drugs, particularly marijuana to “serves” (their code word for narcotics purchasers) and would drive each other to sales and work together to get the right types of THC cartridges and marijuana to customers. On September 28, 2023, Bethow: pleaded guilty to firearms conspiracy in the furtherance of drug trafficking and was sentenced on January 11, 2024, to 24 months’ imprisonment to run concurrent with a federal case charging him with possessing a machinegun. On September 28, 2023, Blair pleaded guilty to firearms conspiracy and was sentenced December 21, 2023, to 21 months’ imprisonment. On October 27, 2023, Falcon pleaded guilty to firearms conspiracy and possession of a firearm in furtherance of drug trafficking. He was sentenced on January 19, 2024, to 24 months’ imprisonment. On November 20, 2023, Bernal Lopez pleaded guilty to firearms conspiracy and possession of a firearm in furtherance of drug trafficking. Sentencing is set for February 16, 2024. This case was investigated by the Federal Bureau of Investigation.


title: Oahu Man Sentenced to 40 Years in Prison for Sexual Exploitation of a Child

component: USAO - Hawaii

body_text: HONOLULU – Kalani Kaaiawaawa, 24, of Honolulu, was sentenced by Senior United States District Judge J. Michael Seabright to 40 years in federal prison for two counts of sexual exploitation of a child and one count of possession of child pornography, followed by a lifetime of supervised release. Kaaiawaawa was also ordered to pay $33,000 in restitution to victims identified in the child pornography he possessed. According to information presented to the court between at least August 2018 and November 2020, Kaaiawaawa repeatedly sexually assaulted a child who was six to eight years old at the time of the assaults, and video-recorded the assaults. The Federal Bureau of Investigation (FBI) discovered the recordings on Kaaiawaawa’s phones in connection with the execution of a search warrant at Kaaiawaawa’s residence. In total, investigators found more than 100,000 images and videos on the two phones containing child pornography, including depictions of children as young as two years old being sexually assaulted. The FBI also discovered chat room conversations in which Kaaiawaawa shared child pornography, bragged about his assaults on the child exploitation victim, and revealed that he had begun to “touch” a second victim, who was two years old at the time. Kaaiawaawa has been detained since his arrest one day after the execution of the search warrant on November 10, 2020. “Justice for the child victim of Kaaiawaawa’s horrendous series of crimes has been served by the Court’s sentence,” said United States Attorney Clare E. Connors. “Our children – the most vulnerable victims in our society – are the priority of our law enforcement community and we will continue to hold sexual predators accountable for their terrible crimes.” “The FBI remains committed in investigating and bringing to prosecution those who continue to take advantage of our most vulnerable population - our keiki in Hawaii,” said FBI Special Agent in Charge Steven Merrill. “This sentence underscores the egregious and reprehensible nature of these types of crimes and highlights how seriously the FBI takes its Crimes Against Children investigative responsibilities." The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Michael F. Albanese prosecuted the case.


title: Omaha Man Sentenced for Producing Child Pornography of Abducted State Ward

body_text: United States Attorney Susan Lehr announced that Robert E. Kaczmarek, age 55, of Omaha, Nebraska, was sentenced on February 9, 2024, in federal court in Omaha for Production of Child Pornography. Chief District Court Judge Robert F. Rossiter, Jr. sentenced Kaczmarek to 324 months’ imprisonment. There is no parole in the federal system. After Kaczmarek’s release from prison, he will begin a 10-year term of supervised release. As part of his sentence, Kaczmarek was ordered to pay $105,214.50 in restitution. “So many words – horrific, egregious, unthinkable, inhuman—all these words apply here”, said Chief Judge Rossiter in pronouncing the sentence. “What was done to this young lady…I seldom see it.” In December 2021, a foster mother in Omaha, Nebraska, reported that her 16-year-old female foster daughter (hereinafter identified as “the victim”) had not come home as expected and the foster mother was concerned that the victim was having an inappropriate relationship with someone around 40 years old named “Rob.” The foster mother provided Snapchat messages of a sexual nature between “Rob” and the victim. The messages included the victim sending photographs of herself in lingerie to “Rob.” On June 30, 2022, Kaczmarek reported to the child abuse hotline/ the victim’s caseworker that the victim was being sexually abused by a friend of Kaczmarek’s. On July 6, 2022, the victim disclosed in a forensic interview that she was involved in a sexual relationship with Kaczmarek, who she described as being 53 years old. The victim stated that she met Kaczmarek through a friend approximately one year prior and that originally Kaczmarek provided her with marijuana, but their relationship turned into exchanging sex for drugs. The victim described being actively addicted to drugs and stated that Kaczmarek would supply cocaine, alcohol, marijuana, and mushrooms in exchange for the victim engaging in sex with him and completing household tasks such as cleaning. The victim also stated that Kaczmarek would pay for the victim to get her hair and nails done. The victim stated that she felt obligated to engage in the sexual activity and that Kaczmarek would become agitated and aggressive if she did not. The victim stated that she feared Kaczmarek would hurt her, his daughter, his dogs, or someone else. The victim stated that sometimes Kaczmarek would be gone for hours and would return with blood on his hands and clothes and would clean his vehicle. Kaczmarek talked about taking people to “the farm” and threatened to take the victim to the farm. The victim stated the people Kaczmarek took to the farm did not return and Kaczmarek talked about calling a buddy to help carry a body to the farm. Kaczmarek also talked about having a chemical in his truck that would disintegrate things. The victim stated she had tried to get away from Kaczmarek at times, but he would become like a stalker and would not leave her alone. The victim discussed an incident where Kaczmarek was angry at her and told her that she was lucky she was female because otherwise he would have “curb stomped” her and taken her to the farm and thrown her in a hole. The victim stated that Kaczmarek had slapped her, burnt her, pushed her, and thrown stuff at her. The victim stated that Kaczmarek had cameras in his bedroom and would get mad if the victim covered up the camera. On August 8, 2022, the Omaha Police Department learned that the victim had left her guardian’s residence in Omaha, Douglas County, Nebraska, in a white Jeep Gladiator. Ring Doorbell video showed the Jeep pull up to the house, the minor get into the vehicle, and the vehicle drive away. The guardian advised that he believed the driver of the vehicle to be Kaczmarek based on the vehicle and the fact that the victim had called him after leaving and stated that Kaczmarek was driving the victim to take her cat to the vet. The victim did not return. Messages later recovered from Kaczmarek’s phone suggested that Kaczmarek took the victim to Missouri and left her there for two days before returning her to Omaha and moving her between various properties. On August 22, 2022, officers executed a search warrant at Kaczmarek’s residence. There was a camera set up in Kaczmarek’s bedroom as described by the victim. Kaczmarek was located at another location. Kaczmarek stated that the victim was at a residence with of an acquaintance of Kaczmarek. Kaczmarek stated that this individual did work for Kaczmarek. Kaczmarek was taken under arrest. When arrested, Kaczmarek was found to be in possession of a plastic shopping bag containing approximately 15 grams of marijuana, approximately 15.5 grams of methamphetamine, and approximately 3 grams of cocaine (all weights with packaging). The minor was located in a dirty cellar with boarded-up windows and only a hand-held light source. The victim was observed to be under the influence of methamphetamines and weighing approximately 88 lbs. The victim reported feeling suicidal while in the basement. During an interview after his arrest, Kaczmarek admitted that he had been in contact with the victim ever since picking her up on August 8, 2022. Kaczmarek also admitted that the victim had sent him nude images of herself. Officers executed search warrants for Kaczmarek’s Google account and cell phone. Within Kaczmarek’s account and on his device, investigators located numerous pictures of the victim in lingerie, exposing her breasts and genital area. Investigators also located videos of the victim engaged in sexual acts. One video depicts the victim restrained and engaged in a sexual act. Lieutenant Tara Ackerson with the Omaha Police Department stated following Kaczmarek’s sentence, “The crimes committed by Kaczmarek are heinous and inconceivable. The sentence that was imposed upon him today sends the message that preying on our youth will not be tolerated. The Omaha Police Department is pleased to see such a strong sentence. We will continue to work with our federal partners to ensure that those involved in sex trafficking are held accountable.” “The sentence imposed by Chief Judge Rossiter sends a message that the horrendous crimes committed by Kaczmarek have no place in our society,” said United States Attorney Susan Lehr, “The United States Attorney’s Office will continue to aggressively prosecute those individuals that take advantage of some of the most vulnerable in society.” This case was investigated by the Omaha Police Department as part of the FBI’s Child Exploitation and Human Trafficking Task Force and 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. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Talihina Resident Pleads Guilty To Federal Drug Charge

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

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael John Jones, age 40, of Talihina, Oklahoma, entered a guilty plea to one count of Possession with Intent to Distribute Methamphetamine. The Indictment alleged that on January 24, 2023, Jones knowingly and intentionally possessed 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, which he intended for distribution. The charge arose from an investigation by the Choctaw Nation Lighthorse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Honorable D. Edward Snow, Magistrate Judge in the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Jones was remanded to the custody of the United States Marshal pending sentencing. Assistant United States Attorneys Michael E. Robinson and Erin Cornell represented the United States.


title: Seminole County Resident Pleads Guilty To Federal Firearm Offense

component: Federal Bureau of Investigation (FBI)

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Rian Reid Miller, age 22, of Wewoka, Oklahoma, entered a guilty plea to one count of using, carrying, brandishing, and discharging a firearm during a federal crime of violence. The Indictment alleged that on April 29, 2023, Miller knowingly used, carried, brandished, and discharged a firearm during an assault on the victim. The crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma. The charges arose from an investigation by the Seminole Nation Lighthorse Police, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation. The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Miller was remanded to the custody of the United States Marshal pending sentencing. Assistant United States Attorney Ryan Bondura represented the United States.


title: Glenpool Resident Sentenced For Sexual Abuse Of A Minor In Indian Country

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alexander Christian Davis, age 37, of Glenpool, Oklahoma, was sentenced to 141 months imprisonment for one count of Sexual Abuse of a Minor in Indian Country. Davis is also subject to a ten year term of supervised release and will be required to register as a sex offender. The charges arose from investigations by the Muscogee (Creek) Nation Lighthorse Police Department and the Federal Bureau of Investigation. On May 11, 2023, Davis entered a plea of guilty to one count of Sexual Abuse of a Minor in Indian Country. According to investigators, Davis engaged in sexual acts with a child under the age of 16 and at least four years younger than him between December 2019 and December 2020. The crime occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma. The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Davis will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorneys Caila M. Cleary and Sarah McAmis represented the United States.


title: Engineer Arrested for Allegedly Stealing Trade Secret Technology Designed to Detect Nuclear Missile Launches and Track Missiles

body_text: LOS ANGELES – A former engineer at a Southern California company has been arrested on federal charges alleging he stole trade secret technologies developed for use by the United States government to detect nuclear missile launches and to track ballistic and hypersonic missiles, the Justice Department announced today. Chenguang Gong, 57, of San Jose, California, was arrested Tuesday morning. Gong, who is a native of China and became a United States citizen in 2011, is being held in custody until a detention hearing scheduled for later today. Gong is charged in a criminal complaint with theft of trade secrets. According to court documents unsealed today, Gong transferred more than 3,600 files from a Los Angeles-area research and development company where he worked – identified in court documents as the victim company – to personal storage devices during his brief tenure with the company last year. The files Gong allegedly transferred include blueprints for sophisticated infrared sensors designed for use in space-based systems to detect nuclear missile launches and track ballistic and hypersonic missiles, as well as blueprints for sensors designed to enable U.S. military aircraft to detect incoming heat-seeking missiles and take countermeasures, including by jamming the missiles’ infrared tracking ability. Some of these files were later found on storage devices seized from Gong’s temporary residence in Thousand Oaks, according to the affidavit in support of the complaint. Together with the United States government and others, the victim company “has invested tens of millions each year for more than seven years to develop the technology,” the affidavit states, and it “would be extremely damaging economically” to the victim company if the technology were obtained by its competitors and “dangerous to U.S. national security if obtained by international actors.” “We will do everything to protect our nation’s security, including from foreign threats,” said United States Attorney Martin Estrada. “Mr. Gong, who had previously sought to provide the People’s Republic of China with information to aid its military, stole sensitive and confidential information related to detecting nuclear missile launches and tracking ballistic and hypersonic missiles. We know that foreign actors, including the PRC, are actively seeking to steal our technology, but we will remain vigilant against this threat by safeguarding the innovations of American businesses and researchers.” “The FBI is committed to protecting our nation’s critical technologies and to pursuing those who look to steal trade secret information for their benefit or for the benefit of foreign adversaries,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The theft of trade secrets, especially of sensitive military technology, undermines our national security, erodes U.S. competitiveness in the global market, and harms the businesses and individuals who have invested time, resources, and creativity into developing innovative technologies. Our actions today send a strong message that anyone willing to steal proprietary information from U.S. businesses will face consequences in the criminal justice system.” As alleged in the affidavit, the victim company hired Gong in January 2023 to work at one its laboratories as an application-specific integrated circuit design manager responsible for the design, development and verification of its infrared sensors. Beginning on approximately March 30, 2023, and continuing until his termination on April 26, 2023, Gong transferred thousands of files from his work laptop to three personal storage devices, including more than 1,800 files after he had accepted a job on April 5, 2023, at one of the victim company’s main competitors. Many of the files Gong allegedly transferred contained proprietary and trade secret information related to the development and design of a readout integrated circuit that allows space-based systems to detect missile launches and track ballistic and hypersonic missiles and a readout integrated circuit that allows aircraft to track incoming threats in low visibility environments. Gong also allegedly transferred trade secret files relating to the development of “next generation” sensors capable of detecting low observable targets while demonstrating increased survivability in space, as well as the blueprints for the mechanical assemblies used to house and cryogenically cool the victim company’s sensors. This information was among the victim company’s most important trade secrets worth hundreds of millions of dollars, according to the complaint, and many of the files were marked “[VICTIM COMPANY] PROPRIETARY,” “FOR OFFICIAL USE ONLY,” “PROPRIETARY INFORMATION,” and “EXPORT CONTROLLED.” During the investigation, the affidavit states, the FBI discovered that, between approximately 2014 and 2022, while employed at several major technology companies in the United States, “Gong submitted numerous applications to ‘Talent Programs’ administered by the People’s Republic of China government.” The affidavit explains that “the PRC has established talent programs through which it identifies individuals located outside the PRC who have expert skills, abilities, and knowledge that would aid in transforming the PRC’s economy, including its military capabilities.” In 2014, while employed at a U.S. information technology company headquartered in Dallas, the affidavit states that Gong sent a business proposal to a contact at a high-tech research institute in China focused on both military and civilian products. In his proposal, translated from Chinese, Gong described a plan to produce high-performance analog-to-digital converters similar to those produced by his employer. On May 8, 2023, the FBI executed a search warrant at Gong’s temporary residence in Thousand Oaks, California, and recovered several digital devices containing hundreds of documents marked as confidential or proprietary belonging to the information technology company, the affidavit alleges. In another Talent Program application in September 2020, the affidavit states, Gong proposed to develop “low light/night vision” image sensors for use in military night vision goggles and civilian applications. In a video presentation included with Gong’s submission, Gong used a video containing the model number of a sensor developed by an international defense, aerospace, and security company where Gong worked from 2015 to 2019. According to the affidavit, Gong also travelled to China several times to seek Talent Program funding to develop sophisticated analog-to-digital converters. In his Talent Program applications outlined in the affidavit, Gong underscored that the high-performance analog-to-digital converters he proposed to develop in China had military applications, explaining that they “directly determine the accuracy and range of radar systems” and that “[m]issile navigation systems also often use radar front-end systems.” In a 2019 email, translated from Chinese, Gong remarked that he “took a risk” by traveling to China to participate in the Talent Programs “because [he] worked for…an American military industry company” and thought he could “do something” to contribute to China’s “high-end military integrated circuits.” The affidavit states that Gong “continued to seek funding from Chinese government programs through at least March 2022.” A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The charge of theft of trade secrets carries a statutory maximum penalty of 10 years in federal prison. The FBI’s Los Angeles Field Office is investigating this matter. The FBI’s San Francisco Field Office and the U.S. Attorney’s Office for the Northern District of California provided substantial assistance. Assistant United States Attorneys David C. Lachman of the Terrorism and Export Crimes Section and Nisha Chandran of the Cyber and Intellectual Property Crimes Section are prosecuting this case. Department of Justice Trial Attorney Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section is providing substantial assistance.


title: Detroit Man Sentenced to Prison for Possession of Methamphetamine with Intent to Distribute

body_text: TOLEDO – Eddie Lee Pope, age 51, of Detroit, Michigan, was sentenced on February 6, 2024, to 240 months in prison by U.S. District Judge Jeffrey Helmick, after being convicted by a jury, in October 2023, of possession of methamphetamine with the intent to distribute. Pope was sentenced to ten years of supervised release after he serves his prison term and ordered to pay a $100 special assessment. According to court documents and evidence presented at trial, Pope was stopped by Ohio State Highway Patrol troopers on State Route 15 in Wyandot County for a traffic offense. After troopers on the scene pulled Pope over, Pope ran into a stand of woods on the side of the highway and discarded a bag containing a pound of crystal methamphetamine. Pope, who had several prior drug trafficking convictions, was on parole at the time he possessed the crystal methamphetamine. The investigation was conducted by the Ohio State Highway Patrol and the Drug Enforcement Administration. This case was prosecuted by Assistant U.S. Attorneys Robert Melching and Alissa Sterling.