title: Former Contracting Officer for the Department of Defense Pleads Guilty in Conspiracy to Defraud the Government

component: USAO - Massachusetts

body_text: BOSTON – An Uxbridge man pleaded guilty today in federal court in Boston to his role in a conspiracy to defraud the government of thousands of dollars from 2014 to 2018. Thomas Bouchard, 60, pleaded guilty to one count of conspiracy and 10 counts of theft of government funds. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for June 26, 2023. Bouchard was arrested and charged in July 2020 along with co-defendant Chantelle Boyd. Bouchard was the Contracting Officer in charge of the U.S. Army Natick Contracting Division, a full-service contracting organization for the Department of Defense. In 2014, Bouchard used his long-standing relationship with Evolution Enterprise, Inc., a government contractor, to allegedly have Boyd hired for a “no show” job as an assistant that specifically supported Bouchard. Boyd’s position cost the Department of Defense more than $490,000 during her time at Evolution from 2014 to 2018, during which Boyd performed little if any useful function. Bouchard and Boyd took numerous government-funded trips, ranging in duration from two to 15 days, under the guise that they were work related. This included 31 trips to Orlando, Fla., among other locations such as Clearwater Beach, Fla., and Stafford, Va., during which Boyd allegedly performed little if any work. For many of the trips, Bouchard and Boyd stayed in the same hotel room and spent time at the pool and Disney parks – all during business hours. In order to conceal the personal nature of the trips, Bouchard altered, created and approved false travel to reimburse the Boyd for out-of-pocket expenses. On April 3, 2023, Boyd pleaded guilty to one count of conspiracy, 10 counts of theft of government funds and false declarations before the grand jury. She is scheduled to be sentenced on June 26, 2023. The charge of conspiracy provides a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charges of theft of government funds each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Rachael S. Rollins; Joseph Dattoria, Special Agent in Charge of the General Services Administration Office of Inspector General; Patrick Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service; and Scott Moreland, Special Agent in Charge of the Army Criminal Investigation Division Major Procurement Fraud Field Office made the announcement. Assistant U.S. Attorney Neil J. Gallagher, Jr. of Rollins’ Public Corruption & Special Prosecutions Unit is prosecuting the case.


title: Tax Preparation Company Operator Sentenced to Prison for Fraud

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, PA – A tax preparer has been sentenced in federal court to 30 months’ imprisonment and one year of supervised release on his conviction of tax fraud, Acting United States Attorney Troy Rivetti announced today. United States District Judge Cathy Bissoon imposed the sentence on Brian A. VanDusen, age 52, of Youngstown, Ohio. According to information presented to the court, VanDusen operated a tax preparation company called “Easy Tax Refund” located in the Warner Center, in downtown Pittsburgh. Between 2014 and 2018, VanDusen and tax preparers employed at his company prepared and transmitted hundreds of false federal income tax returns which falsified Schedule C profit and loss income from a business, resulting in illegal tax refunds. Losses to the IRS totaled $994,824.00. Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government. Acting United States Attorney Rivetti commended the Internal Revenue Service - Criminal Investigation Division for the investigation leading to the successful prosecution of VanDusen.


title: Several convicted in family-run illegal gambling businesses

component: USAO - Texas, Southern

body_text: LAREDO, Texas – A total of seven local residents have been convicted of conspiring to conduct illegal gambling in Webb and Zapata counties, announced U.S. Attorney Alamdar S. Hamdani. Hilda Diana Guerra-Villarrea, 74, Raul Rene Villarreal, 51, and Alma Urania Garcia, 33, all of Zapata, pleaded guilty today to conspiring to conduct and conducting illegal gambling at locations in Webb and Zapata counties. Four others - Rodolfo Ricardo Villarreal Jr., 37, Juan Vasco, 52, and Ruben Samuel Villarreal, 28, all from Zapata and Maria Mendieta, 42, Bruni - entered their pleas to the same charges in 2022. The investigation revealed a complex conspiracy which began in 2019. As part of the scheme, various members of the Villarreal family conspired to operate a family-run illegal gambling business at multiple establishments in Webb and Zapata Counties near the city of Laredo. This included the Lucky Spins (Red Barn) in Bruni, Desert Diamond in Falcon and Golden Amusement in Zapata. Members of the family and their close associates owned and operated the establishments and illegally made cash payouts to customers. As part of her plea today, Guerra-Villarreal agreed to the forfeiture of an estimated $2.6 million in the form of land, buildings and gambling machines. U.S. District Judge Diana Saldana will impose sentencing for all at a later date. At those hearings, each faces up to five years in prison and a possible $250,000 fine. All seven have been permitted to remain on bond pending that hearing. Homeland Security Investigations investigated the case with assistance from the Laredo Police Department, Texas Department of Public Safety and Webb County District Attorney’s Office. Assistant U.S. Attorney Francisco J. Rodriguez, Mary Ellen Smyth, Gerard Cantu and Matthew Isaac are prosecuting the case.


title: Chester County Former CFO Indicted on Charges of Tax Fraud

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that David L. Shull, 68, of Largo, FL (formerly of West Chester, PA) was charged by Indictment with six counts of failure to pay over employment taxes for a Chester County adult day care facility from 2013 through 2017, and failing to account for employment taxes owed in the same years. The Indictment alleges that, as the Controller/Chief Financial Officer of the care facility, Shull was legally obligated to withhold payroll taxes from wages paid to the company’s employees and was responsible to pay over these taxes to the IRS. The Indictment also alleges that Shull was required to pay over the care facility’s contributions for Social Security and Medicare in amounts matching the amounts withheld from its employees’ pay for those purposes. Shull was also required to file, following the end of each calendar quarter, an Employer’s Quarterly Federal Income Tax Return (Form 941), setting forth the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, and the total amount of Social Security and Medicare taxes due to the IRS. The Indictment alleges that from 2005 through 2017, Shull caused the care facility to pay wages to its employees. The Indictment further alleges that during this same period, Shull also caused the care facility to withhold trust fund taxes from those wages and to issue Wage and Tax Statements (Form W-2) to the employees indicating that trust fund taxes had been withheld from those wages and implying that those trust fund taxes had been paid over to the IRS. The Indictment alleges that beginning in or about 2013 through in or about 2017, this was a false representation, as the withheld tax amounts were not paid over to the IRS, neither were the care facility’s employer contributions paid over during this time period. According to the Indictment, Shull caused some amounts to be paid to the IRS in 2013 and 2014, but this was insufficient to cover tax debts and penalties. The Indictment further alleges that from 2013 through 2017, Shull caused the care facility to file only one Form 941, for the second quarter of 2013, despite the fact that during this period, the care facility had approximately 53-67 employees. If convicted, the defendant faces a maximum possible sentence of 30 years in prison and a $1,500,000 fine. The defendant may also be responsible for the taxes due, in addition to the payment of penalties to the Internal Revenue Service. The case was investigated by the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Angella Middleton.


title: Braymer Man Sentenced to 32 Years for Cattle Fraud Scheme That Led to Murders

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Braymer, Mo., man was sentenced in federal court today for a $215,000 cattle fraud scheme that he attempted to cover up by murdering two Wisconsin brothers. Garland Joseph Nelson, 28, was sentenced by U.S. Chief District Judge Beth Phillips to 32 years in federal prison without parole. The court also ordered Nelson to pay $260,925 in restitution to his victims. On Oct. 4, 2022, Nelson pleaded guilty to one count of mail fraud and one count of being a felon in possession of a firearm. Nelson admitted that he defrauded a Shawano County, Wisconsin company, Diemel’s Livestock, LLC, of $215,000 in a cattle contract. Nelson is also serving two life sentences in a separate state case related to the murders of Nicholas and Justin Diemel, two brothers who were principals in Diemel’s Livestock. Nelson’s federal prison sentence must be served consecutively to his state sentence. Nelson – an employee of J4s Farm Enterprises, Inc., a business started by his mother – agreed to care for cattle belonging to Diemel’s Livestock. Diemel’s Livestock invested and traded in cattle and other livestock. Nelson agreed to feed and pasture the cattle, then sell the cattle and send Diemel’s Livestock the proceeds (minus the costs of raising the cattle). The Diemels sent several loads of cattle to Nelson from November 2018 through April 2019. Nelson sold some loads of cattle and paid the Diemels. However, Nelson admitted he killed many of the Diemels’s cattle and then fraudulently billed the Diemels for feed and yardage for the dead cattle. Nelson admitted that he did not properly care for cattle due to incompetence, neglect, or maltreatment. Hundreds of calves entrusted to Nelson died due to underfeeding, neglect, and/or maltreatment. Nelson fed cattle inadequately and poorly. For example, he dropped feed bales in a pasture for calves but did not remove the plastic covering so that calves ate the plastic and died. Throughout the spring of 2019, Nicholas Diemel pressed Nelson for payment for his cattle. He sent no more loads of cattle to Nelson while he awaited his payment. To deprive the Diemels of their cattle or their money and to prevent them from recovering either their cattle or their money, in June 2019 Nelson fraudulently sent the Diemels a bad check for $215,936 while his bank account had a balance of 21 cents. The check had been intentionally torn and damaged so that it could not be submitted for payment. Nelson told the Diemels they could come to Missouri to get their money. On July 17, 2019, Nicholas Diemel bought two round-trip airline tickets from Milwaukee to Kansas City. On July 20, 2019, Nicholas and Justin Diemel arrived in Kansas City and rented a pickup truck from Budget. On July 21, 2019, the Diemels drove their rental truck to Nelson’s mother’s farm in Braymer. Nelson’s mother and other family members were in Branson for the weekend, so Nelson was alone on the farm. Nelson murdered both of the Diemels and attempted to dispose of their bodies, but the remains were later found by investigators. Nelson also was in possession of a Marlin 30-30 rifle and ammunition from July 18 to July 21, 2019. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Nelson has a 2015 federal felony conviction for an earlier cattle fraud scheme that resulted in losses of more than $262,000 to his victims, as well as two prior state felony convictions for passing bad checks. According to court documents, Nelson engaged in at least two more cattle fraud schemes. In December 2018, Nelson was entrusted with feeding and caring for 131 calves he co-owned with a Kansas farmer (less than a year after he was released from prison for his 2015 conviction and in direct contravention to the conditions of his supervised release). On May 23, 2019, Nelson dropped off 35 calves at the co-owner’s farm in Kansas, apparently all that survived of the 131. Of the surviving 35 calves, many were emaciated and had ringworm; some could not even walk onto a truck to be transported. Some calves had their ears torn as though identifying ear tags had been removed. According to court documents, those calves were involved in another cattle fraud scheme engaged by Nelson. Nelson told a Bogard, Mo., farmer that he would furnish all the food and medicine for 131 bottle calves and pay the farmer a dollar per day per calf for the use of his barn and the time he would spend feeding the calves. Nelson bought almost no food or medicine for the calves in the five months he kept them at the Bogard farm. Instead, the farmer paid $14,363 out of his own pocket for food and veterinary care for the calves. Nor did Nelson ever pay anything to the farmer for the use of his barn and time spent feeding and caring for the calves as he had promised. (Nelson’s mother later paid the farmer $2,000.) In late April 2019, Nelson picked up the living bottle calves from the Bogard farm and took them to his mother’s farm. On May 23, 2019, Nelson dumped the 35 remaining calves without warning at the Kansas farm. This was a problem because the Kansas farmer had a closed dairy herd and bringing unvaccinated and potentially diseased calves onto his property put his existing herd at risk. On Sept. 30, 2022, Nelson pleaded guilty to two counts of murder in the first degree in Johnson County, Mo., and was sentenced to life imprisonment without parole on each count to run consecutively. This case was prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney and Nicholas Heberle. It was investigated by the FBI, the U.S. Department of Agriculture – Office of Inspector General, the Caldwell County, Mo., Sheriff’s Department, the Bourbon County, Kan., Sheriff’s Department, and the Missouri State Highway Patrol.


title: Firearms Trafficker Sentenced To 102 Months In Prison For Directing Straw Purchasing Conspiracy Involving Over 60 Firearms

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tykeam Markel Jackson, age 27, was sentenced on April 18, 2023, to 102 months’ imprisonment by U.S. District Court Judge Christopher C. Conner, for multiple firearms offenses related to his trafficking of over 60 firearms from Central Pennsylvania to Massachusetts. According to United States Attorney Gerard M. Karam, between March 25 and July 26, 2020, Jackson orchestrated a scheme to obtain firearms using straw parties to purchase firearms from Cumberland, Dauphin, and Lancaster-area licensed firearms dealers. In exchange for cash from Jackson, the straw purchasers fraudulently certified to dealers that they were buying firearms for themselves, when in truth they were buying firearms for Jackson, who was a felon at the time and prohibited from purchasing or possessing firearms. Jackson then obliterated the serial numbers and transported the firearms to Massachusetts for resale. The straw purchasing scheme led by Jackson purchased or attempted to purchase 61 firearms before ATF agents ended the operation by arresting Jackson in Massachusetts. While attempting to evade arrest, Jackson assaulted a deputized federal law enforcement officer, fled in his vehicle at speeds exceeding 100 miles per hour, and ditched a backpack containing cash, ammunition, a ghost gun, and 4 firearms with obliterated serial numbers, including 3 firearms recently purchased in Central Pennsylvania. Jackson’s co-conspirators, Jamia Philecia Holton and Shadaya Nakeyma Jackson pleaded guilty to felonies for their roles as straw purchasers of firearms for Jackson and were sentenced to terms of probation. Jackson was separately charged, convicted, and sentenced to 77 months’ imprisonment for his assault of the officer in Massachusetts in connection with his arrest on July 27, 2020. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Samuel S. Dalke prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. # # #


title: Maryland Man Pleads Guilty to Federal Gun Crimes

component: USAO - West Virginia, Southern

body_text: HUNTINGTON, W.Va. – Timothy Lanier Allen III, 24, of Maryland, pleaded guilty today to three counts of making false statements in acquisition of firearms. According to court documents and statements made in court, on June 1, 2022, Allen purchased two Ruger 57, 5.7x28mm-caliber pistols, a Glock 27, .40-caliber pistol, and a Glock 30S, .45-caliber pistol at various businesses in Barboursville and Huntington. Allen bought the firearms for an individual who was with him during the purchases and who provided the money to buy the firearms. Allen falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473 that he was the buyer of the firearms when he knew he was purchasing the firearms for the individual. Allen is scheduled to be sentenced on July 31, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-215. ###


title: Department of Justice Commemorates 2023 National Crime Victims’ Rights Week

component: USAO - Iowa, Southern

body_text: DES MOINES, IA – The Department of Justice’s Office for Victims of Crime and the United States Attorney’s Office for the Southern District of Iowa join federal, state, and local communities nationwide in observing National Crime Victims’ Rights Week and celebrating victims’ rights, protections, and services. This year’s observance takes place April 23-29, 2023 and features the theme, “Survivor Voices: Elevate. Engage. Effect Change,” which emphases the importance of engaging with victims of crime, learning from their lived experiences, amplifying their voices, and fostering an environment where they are heard, believed, and supported. As part of this observance, the Southern District of Iowa recognizes the courage and bravery of victims, and the outstanding work of law enforcement, victim advocates, and community service partners throughout Iowa. Seven individuals are recognized for outstanding service to victims: Award for Excellence in Victim Services • United States Attorney’s Office, Southern District of Iowa, Victim Witness Specialist Charlotte Kovacs • Family Resources/Braking Traffik Survivor Advocate Gretchen McCall Law Enforcement Victim Service Award • Des Moines Police Department Detective Ben Carter • Council Bluffs Police Department Sergeant John Focht • Altoona Police Department Detective David Lowe • FBI Special Agent Amber Mann • Ottumwa Police Department Investigator Jeremy Tosh “These awards proudly recognize the exceptional efforts of individuals providing assistance to federal and state victims in the Southern District of Iowa,” said United States Attorney Richard D. Westphal. “Advocacy for the rights and safety of victims is a cogent reminder of the long-term human impact of these crimes. The service of these individuals, and other state and federal victim advocates, are a vital component of our criminal justice system.” The 2023 Award for Excellence in Victim Services is awarded to United States Attorney’s Office, Southern District of Iowa, Victim Witness Specialist Charlotte Kovacs. Kovacs provides selfless and dedicated advocacy to federal crime victims. Kovacs epitomizes the highest quality of victim advocacy in support of victims, witnesses, and their families during the investigation and prosecution of all federal crimes, and specifically human trafficking cases and fentanyl-related death cases. Kovacs’s extraordinary dedication to her profession and to the citizens of the Southern District of Iowa cannot be replicated. The 2023 Award for Excellence in Victim Services is awarded to Family Resources/Braking Traffik Survivor Advocate Gretchen McCall. McCall has provided excellent victim services to the Davenport community and the Southern District of Iowa. McCall and her services were instrumental in a Davenport human trafficking case where, as a victim advocate, she provided the human trafficking victim with vital resources to ensure a solid foundation for the victim, before, during, and after trial. McCall’s devotion to her profession, time and time again, has proven to be an invaluable resource to the community and the victims for whom she relentlessly advocates. The 2023 Law Enforcement Victim Service Award recognizes the performance of Des Moines Police Department Detective Ben Carter. Detective Carter showed outstanding work and unrelenting perseverance in the investigation and prosecution of Tyrone Cameron . Detective Carter’s dedication to the case began in early spring of 2022 from the death of Jeff Gillom and extended into April 2023 when Tyrone Cameron was convicted in federal court on charges related to the death of Gillom. During a year’s time, Detective Carter showed unwavering commitment to bring justice to the victim’s family and ultimately received justice by performing in his role as an investigator and as the victim’s family’s lifeline by exuding empathy and understanding with the victim’s family. Detective Carter went above and beyond in his duties for the victim’s family and for the Des Moines community, resulting in a conviction largely due to his unparalleled commitment and service. The 2023 Law Enforcement Victim Service Award is awarded to Council Bluffs Police Department Sergeant John Focht for his support and dedication to his profession through the investigation and prosecution of several cases involving child victims. Sergeant Focht’s investigative skills were vital in the prosecution of Myron Brandon who was charged and convicted of Kidnapping and Transportation of a Minor. Sergeant Focht spent countless hours meeting with witnesses across the United States and assisted the prosecution with invaluable support during trial. Sergeant John Focht is an irreplaceable asset to the Council Bluffs community and to the people of Iowa. The 2023 Law Enforcement Victim Service Award is awarded to Altoona Police Department Detective David Lowe for his outstanding service, commitment, and dedication to assisting victims in the Altoona community and the State of Iowa. Detective Lowe has established himself as an outstanding detective in the investigations of human trafficking and child exploitation cases by providing support to victims and witnesses. Detective Lowe has exceptional skills in communication, investigation, and prosecutorial support and exemplifies the highest order of conduct and performance in every investigation and with each victim. The 2023 Law Enforcement Victim Service Award is awarded to FBI Special Agent Amber Mann as a fierce investigator and committed advocate for justice especially for minor victims in human trafficking and sex trafficking cases. Special Agent Mann successfully investigated and aided in the prosecution of two defendants, one convicted of Transportation of a Minor and Coercion and Enticement and one convicted of Travel with the Intent to Engage in Illicit Sexual Conduct. Both defendants preyed on children for their personal intentions. Special Agent Mann investigated the cases to the core, worked directly with the minor victims and their families, and dedicated long hours on the ultimate prosecution of two predators. Special Agent Mann is dedicated to our community and to fighting for justice for all victims. The 2023 Law Enforcement Victim Service Award is awarded to Ottumwa Police Department Investigator Jeremy Tosh for his commitment to his work and for his relentless efforts to provide victims and witnesses of crimes with outstanding support. Investigator Tosh’s skills were put to the test during the investigation and prosecution of Nesly Mwarecheong and Bertino Weires , both of which plead guilty to forced labor crimes against three victims from the small island of Chuuk in the Federated States of Micronesia. Investigator Tosh provided constant support to the victims, despite significant obstacles with language barriers and American customs and norms. At sentencing, the victims expressed their gratitude for Investigator Tosh in their victim impact statements, proof that Investigator Tosh’s impact on the lives of victims makes him most deserving of this award. President Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ojp.gov/ncvrw2022/overview .


title: Owner of Temporary Employment Agency Pleads Guilty to Tax Fraud and Workers Compensation Insurance Fraud

body_text: BOSTON – A Dorchester woman has pleaded guilty in federal court in Boston to tax and fraud offenses in connection with her operation of a temporary employment agency. Dam Ngoc Luong, 69, pleaded guilty on April 18, 2023 to two counts of filing false corporate and individual tax returns, three counts of failure to collect and pay over employee taxes and one count of mail fraud. United States Senior District Judge Rya W. Zobel scheduled sentencing for July 13, 2023. From at least 2015 through 2019, Luong owned and operated Four Seasons Temp, Inc., an agency providing temporary workers for client businesses. A temporary employment agency is responsible for paying wages to the employees, processing employee payroll, collecting and paying all employee payroll taxes and maintaining workers’ compensation insurance to protect employees who suffer work-related injuries. The agency collects payments from the client businesses to cover the agency’s expenses and a profit for the agency. When collecting payments from business clients of her temporary employment agency, however, Luong cashed most checks rather than deposit the funds into her business account. Then, on annual corporate tax returns, Luong reported to the IRS only the amounts deposited to the business account and failed to pay federal taxes on more than $14 million of the company’s income. Additionally, because Luong created Four Seasons as an S-corporation, the net business income and expenses flowed through to her Form 1040 individual tax returns. As a result, Luong failed to report more than $3 million in pass-through income and failed to pay $885,000 in personal income taxes. As the owner of the company, Luong also had an obligation to withhold taxes from wages paid to the employees. Despite this obligation, Luong paid more than $12 million of employee wages in cash “under the table.” She failed to withhold taxes from the cash wages and failed to pay more than $3 million in employment taxes she owed to the IRS. Finally, Luong defrauded the insurance carrier she engaged to provide workers’ compensation insurance coverage for employees, by concealing the cash wages paid to her employees. By concealing the wages she paid, Luong paid lower workers’ compensation insurance premiums and defrauded the insurance carrier of $155,000 in premiums she should have paid. The charges of filing false tax returns each provide for a sentence of up to three years in prison, one year of supervised release, a fine of $250,000 and restitution to the IRS. The charges of failure to collect and pay over employee taxes each provide for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 and restitution to the IRS. The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.


title: Leader of Organization that Distributed Over 6 Kilograms of Heroin and Fentanyl Sentenced to Over 33 Years in Federal Prison

component: USAO - Iowa, Northern

body_text: A man who led a years‑long conspiracy to distribute heroin and fentanyl was sentenced on April 21, 2023, to over 33 years in federal prison. Brian Jarrell Dennis, age 33, from Cedar Rapids, Iowa, received the prison term after his June 27, 2022 guilty pleas to one count of conspiracy to distribute heroin, two counts of distribution of heroin and fentanyl, two counts of distribution and aiding and abetting the distribution of heroin and fentanyl, and one count of possession of a firearm by a felon. Evidence and information presented at the sentencing hearing and prior hearings showed that Dennis orchestrated the transport of over six kilograms of purported heroin from Chicago for distribution in Cedar Rapids. During the early part of 2021, the Drug Enforcement Administration in Cedar Rapids initiated a wiretap investigation into Dennis’s drug distribution ring. That evidence showed that during the months of the wiretap, Dennis employed intermediaries whom he supplied with purported heroin (which almost always also contained fentanyl or another synthetic opioid) to distribute to customers. Several of those customers regularly distributed that purported heroin to other individuals. Evidence at the sentencing hearing showed that, in November 2018, Dennis was in a dispute with his cousin, who was one of his former heroin distributors. Dennis believed his cousin had stolen customers from him, so Dennis threatened that individual over the phone, telling him that he would “come at him with everything [he] had.” The sentencing court found that, during the evening of November 29, 2018, Dennis shot his cousin twice in the chest with a .22 caliber pistol during a drive‑by shooting in Cedar Rapids. The cousin survived the attack, but the sentencing judge observed that for Dennis, “money comes before family.” The judge described Dennis as the “poster child” for a major drug dealer who uses violence to control his business. Information presented at sentencing and other hearings also showed that when officers attempted to arrest Dennis on the federal arrest warrant in June 2021, he led them on a high‑speed car chase during which Dennis threw a loaded handgun out of his vehicle, drove through traffic signals, and eventually drove onto a golf course where he ran his vehicle into a stone bridge. After Dennis exited his vehicle and attempted to flee on foot, he was arrested by officers. “Heroin and fentanyl are lethal drugs, and have killed adults and children in our community,” said United States Attorney Timothy Duax. “Dennis brought these deadly drugs here intending to sell them for profit, regardless of the consequences. Dennis used violence to control his market and enhance his ability to make money from the vulnerable and addicted. Prosecuting dangerous individuals like Dennis remains a top priority for our office.” drug“A known drug trafficker with a proven history of violence has been removed from our community making the streets of Cedar Rapids that much safer for our families,” Drug Enforcement Administration (DEA) Omaha Division Special Agent in Charge Justin C. King said. “Today’s sentencing, along with the sentencing of nine of Brian Dennis’ associates, should send a strong message about the penalty that comes from pushing potentially lethal substances like heroin and heroin laced with fentanyl into our neighborhoods. Drug trafficking is not an innocent crime and arrests are often made of traffickers who own multiple weapons and have inflicted harm on others. Brian Dennis is a dangerous criminal and now faces more than 33 years in federal prison for his violent acts.” Nine other individuals, Cody Scott Deklotz, Andrew James Lehman, Ryan Rick Schlitter, Melinda Salvatora Werning, Jerry Dwayne Banghart, Thomas Nathaniel May, Demeco Demon Irvin, Taylor James Leyden, and David Michael Nelson, previously pled guilty to the heroin conspiracy and have been sentenced. Ryan Rick Schlitter was sentenced to 46 months’ imprisonment. Andrew James Lehman was sentenced to 10 months and 16 days’ imprisonment. Cody Scott Deklotz was sentenced to 84 months’ imprisonment. Melinda Salvatora Werning was sentenced to 12 months and one day of imprisonment. Jerry Dwayne Banghart was sentenced to 46 months’ imprisonment. Thomas Nathaniel May was sentenced to 31 months’ imprisonment. Demeco Demon Irvin was sentenced to 46 months’ imprisonment. Taylor James Leyden was sentenced to 24 months’ imprisonment. David Michael Nelson was sentenced to 24 months’ imprisonment. Ladonna Cynthia Givens, who also sold heroin and fentanyl for Dennis but who was charged in a separate indictment, was sentenced to 7 months and 14 days’ imprisonment. Dennis was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dennis was sentenced to a total of 400 months’ imprisonment on the conspiracy count, 240 months’ concurrent imprisonment on the remaining drug counts, and 120 months’ concurrent imprisonment on the gun count. He must also serve a total of a five-year term of supervised release after the prison term. There is no parole in the federal system. Dennis is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Dan Chatham. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 21‑CR‑32‑CJW. Follow us on Twitter @USAO_NDIA.


title: Cabell County Woman Sentenced for Federal Fraud Crimes

body_text: HUNTINGTON, W.Va. – Tiffani Meeks, 38, of Barboursville, was sentenced today to three years in prison, to be followed by four years of supervised release, for committing wire fraud on three separate occasions. Meeks was also ordered to pay $121,841.60 in restitution. According to court documents and statements made in court, from August 1, 2019, through March 9, 2021, Meeks worked as a bookkeeper at a Cabell County business. Her duties included paying bills, monitoring credit and bank statements, maintaining accurate accounting records, and providing those records to the company’s owners upon request. Meeks pleaded guilty to using company credit cards not issued to her to make three unauthorized personal online purchases totaling $7,329.39 between February 19, 2020, and November 3, 2020. Meeks further admitted that her unauthorized personal online purchases with the company credit cards totaled at least $121,841.60 between February 12, 2020, and June 18, 2021. Meeks made at least $6,862.83 of the unauthorized online purchases after she was fired by the company on March 9, 2021. In an effort to conceal her criminal conduct, Meeks had the unauthorized purchases shipped to her residence, mislabeled them as legitimate payments in company records, and withheld pages listing them before providing those records to the owners. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Ryan A. Keefe and Kristin F. Scott prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-119. ###


title: Member of 5-9 Brims Gang Convicted of Brooklyn Murder

component: USAO - New York, Eastern

body_text: A federal jury in Brooklyn returned a guilty verdict today against Marvin Pippins, also known as “Mukk,” a member of the Brooklyn-based street gang 5-9 Brims, on counts of racketeering conspiracy, murder-in-aid-of racketeering, murder conspiracy, narcotics trafficking and use of a firearm. The verdict followed a two-week trial before United States District Judge Pamela K. Chen. When sentenced, Pippins faces a mandatory term of life imprisonment. Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict. Mr. Peace expressed his thanks to the Federal Bureau of Investigation, New York Field Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives, New York Division, and the New York City Police Department for their outstanding investigative work and dedication. “As found by the jury, Pippins brazenly committed a gang-related murder with a gun, in broad daylight in Brooklyn, taking another human’s life on behalf of his criminal enterprise which also trafficked drugs and perpetrated fraud in our community,” stated United States Attorney Peace. “Pippins will now face very serious consequences for a brutal crime that was motivated by a senseless feud with rivals. Today’s verdict demonstrates the commitment of this Office and our law enforcement partners to dismantle violent gangs that threaten the safety of our communities.” The evidence at trial established that between January 2012 and December 2019, Pippins and other members and associates of the 5-9 Brims engaged in drug trafficking and fraud, and committed acts of violence, including murder. Pippins sold crack and cocaine and committed numerous financial frauds, including possession and use of stolen identities, fraudulent checks and access devices such as credit cards and bank account information. During this time period, the 5-9 Brims were feuding with a rival faction, known as “Real Ryte,” whose members also operated in Brooklyn. On December 19, 2015, Pippins killed Sean Peart, a Real Ryte member, by shooting at him six times while Peart sat in a car in Bedford Stuyvesant, Brooklyn. The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant U.S. Attorneys Jennifer M. Sasso, Lindsey R. Oken and Dana Rehnquist are in charge of the prosecution, with the assistance of Paralegal Specialist Celine Laruelle. The Defendant : MARVIN PIPPINS (also known as “Mukk”) Age: 32 Brooklyn, New York E.D.N.Y. Docket No. 19-CR-378 (PKC)


title: Russian Woman Pleads Guilty to Smuggling Animal DNA

component: USAO - Virginia, Eastern

body_text: ALEXANDRIA, Va. – A Russian national residing in Leesburg pleaded guilty today to smuggling animal DNA into the United States at Washington Dulles International Airport. According to court documents, on August 19, 2022, Polina Perelman arrived at Dulles Airport from Russia. On her Customs Declaration, Perelman denied that she was importing any animals, animal products, or cell cultures. However, during an inspection of her luggage customs officers found a Styrofoam cooler labeled “Research Samples,” containing 19 small vials and tubes packed in dry ice. When asked about the vials and tubes, Perelman said that they contained cell lines and DNA samples that she planned to have sequenced in the United States for her research in Russia. Perelman said that the samples were suspended in a freezing/transport medium containing fetal bovine serum, which also contained dimethyl sulfoxide and Alpha Minimum Essential Medium to help preserve the samples. Further, according to court documents, Perelman said that she was a researcher at the Institute of Molecular & Cellular Biology in Novosibirsk, Russia, and does genetic sequencing of animal and reptile DNA to study evolution. Perelman admitted that she failed to declare her possession of wildlife products and cell cultures because she was concerned that customs officials might think that the vials contained a disease agent, and that if she declared the samples, customs officials would seize the samples and ask her unwanted questions. According to court documents, of the 19 samples that Perelman attempted to introduce into the United States, two contained biological material derived from Siberian crane and dhole, endangered species under U.S. law and protected by an international treaty known as the Convention on International Trade in Endangered Species (CITES). Perelman is scheduled to be sentenced on August 24, 2023. She faces a maximum penalty of 20 years in prison. 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. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; and Edward Grace, Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, made the announcement after U.S. District Judge Patricia T. Giles accepted the plea. Assistant U.S. Attorneys Cristina Stam and Gordon Kromberg are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-55.


title: Dubuque Fentanyl Dealer Who Referenced Overdoses During Drug Sales Sentenced to 18 Years in Prison

body_text: A two-time drug felon who possessed a firearm and sold fentanyl to drug users in Dubuque, Iowa, was sentenced today to 216 months in federal prison. Jose Miguel Soto-Guzman, age 47, received the prison sentence after a December 6, 2022 guilty plea to distribution of a controlled substance near a protected location after having been previously convicted of a felony drug offense and possession of a firearm by a felon. Evidence at hearings in Soto-Guzman and his co-defendant’s cases established that, between March and June 2022, Soto-Guzman supplied heroin users in the Dubuque area with fentanyl. Soto-Guzman and his co-defendant, Fallon Christina Murphy, regularly traveled to La Crosse, Wisconsin, to purchase fentanyl from Soto-Guzman’s source, which Soto-Guzman and Murphy then sold in Dubuque. During one of these trips, Soto-Guzman’s three-year-old child was present. Between March and June 2022, investigators conducted five controlled purchases from Soto‑Guzman and Murphy. The drugs purchased contained fentanyl, but some of the fentanyl was mixed with heroin and some with methamphetamine. During a drug sale, Soto-Guzman told an undercover agent that two people had overdosed the previous day. When investigators searched a residence where Soto-Guzman stayed, they located a firearm that he possessed. Soto-Guzman, a convicted felon, was also known to possess a firearm while selling controlled substances. Soto-Guzman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. He was sentenced to 216 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system. Murphy was previously sentenced to 28 months’ imprisonment and 3 years of supervised release. Soto-Guzman is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Special Assistant United States Attorney Nicole L. Nagin and Assistant United States Attorney Dan Chatham and was investigated by the Dubuque Drug Task Force as part of the Northern Iowa Heroin Initiative. 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. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-CR-1022. Follow us on Twitter @USAO_NDIA.


title: West Chester Woman Sentenced to 92 Months in Federal Prison for Drug Trafficking

body_text: A woman who was trafficking ice methamphetamine was sentenced today to more than seven years in federal prison. Mary Lavone Linnell, age 62, from West Chester, Iowa, received the prison term after a November 18, 2022 guilty plea to possession of ice methamphetamine with the intent to distribute it. Evidence disclosed at the sentencing hearing showed that law enforcement stopped Linnell in a vehicle with approximately a quarter pound of ice methamphetamine in November 2021. Other evidence showed that, in total, she bought over two pounds of ice methamphetamine for redistribution throughout 2021. Linnell has multiple prior convictions for operating vehicles while under the influence and for possessing controlled substances. She also has convictions for distributing methamphetamine and possessing cocaine with intent to deliver it. Linnell was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. She was sentenced to 92 months’ imprisonment and must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Linnell is being held in the United States Marshal’s custody until she can be transported to a federal prison. The case was prosecuted by Special Assistant United States Attorney Devra T. Hake and investigated by the Drug Enforcement Administration, Johnson County Drug Task Force, Cedar Rapids Police Department, and the Muscatine County Sheriff’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-CR-61.


title: Convicted Felon Sentenced for Crack Cocaine Distribution

body_text: BOSTON – A Boston man, previously convicted of numerous state drug distribution charges, was sentenced today in federal court in Boston for distributing cocaine base (crack cocaine). Jerry Cooper, a/k/a “Jerkz,” 30, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to seven years in prison and three years of supervised release. On Nov. 8, 2022, Cooper pleaded guilty to one count of distribution and possession with intent to distribute cocaine base. This case arose from a series of controlled purchases of crack cocaine from Cooper, who, in September 2021, was recorded conducting a controlled purchase of crack cocaine. United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney John T. Dawley, Jr. of the Organized Crime & Gang Unit prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Lowell Man Sentenced for Cocaine Conspiracy Tied to Colombian Organized Crime Organization

body_text: BOSTON – A Lowell man was sentenced today in federal court in Boston for conspiring to distribute cocaine. Miguel Colindres, 61, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 51 months in prison and three years of supervised release. In January, Colindres pleaded guilty to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Colindres was arrested and charged on July 15, 2020 and subsequently indicted by a federal grand jury on July 21, 2020. Colindres conspired with members of La Oficina de Envigado (La Oficina), a criminal organization based in Medellín, Colombia to distribute five kilograms of cocaine. La Oficina originated in the 1980s when its members provided enforcement and collection services for the Medellín Cartel, including deceased Medellín Cartel leader Pablo Escobar. Today, La Oficina is allegedly involved in international narcotics trafficking, drug debt collection, money laundering, extortion and murder for hire. It is alleged that co-defendants Fabio de Jesus Yepes Sanchez and Mario Zapata Velez were members of La Oficina who were tasked with collecting a $750,000 drug debt from two cocaine traffickers in Massachusetts. It is further alleged that Colindres conspired with Yepes, Zapata and others, to obtain five kilograms of cocaine from the Massachusetts traffickers, sell those kilograms, and then repatriate the drug proceeds to Colombia, in partial satisfaction of the outstanding drug debt. United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Criminal Division’s Office of International Affairs of the Justice Department; Internal Revenue Service’s Criminal Investigations in Boston; and the Government of Colombia. Assistant U.S. Attorneys Lauren A. Graber and Jared C. Dolan of Rollins’ Criminal Division prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. 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: Veterans Affairs Medical Center Employee Pleads Guilty to Child Pornography Offenses

body_text: BOSTON – A Royalston man pleaded guilty today in federal court in Springfield to child pornography charges. Kevin A. Divoll, 51 pleaded guilty to one count of distribution of child pornography and one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 19, 2023. Divoll was arrested and charged in August 2022. Divoll, a former employee of the Veterans Affairs (VA) Medical Center in Leeds, was identified as the owner and user of a device distributing child pornography over the VA Medical Center’s public Wi-Fi from May 2022 through July 2022. During a search of his residence on Aug. 4, 2022, Divoll was found to be in possession of child pornography that involved a prepubescent minor and a minor who had not attained 12 years of age. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years of supervised release and a fine of up to $250,000. The charge of possession of child pornography involving an image of child pornography involving a prepubescent minor or a minor who had not attained 12 years of age provides for a sentence of up to 20 years in prison, at least five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Rachael Rollins and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, made the announcement. Significant assistance was provided by the Leeds VA Medical Center Police. Assistant U.S. Attorney Catherine G. Curley of Rollins’ Springfield Branch Office is prosecuting the case.


title: Final Member of Human Smuggling Organization Sentenced for Smuggling 90 Individuals From Mexico, Guatemala, and Honduras

component: USAO - Arizona

body_text: TUCSON, Ariz. – Salvador Lopez-Vargas, 36, of Michoacan, Mexico, was sentenced last week by United States District Judge Scott H. Rash to a term of 36 months in prison, followed by three years of supervised release, for his management role in a criminal conspiracy to harbor and transport 90 undocumented non-citizens (UNCs). Lopez-Vargas pleaded guilty on December 8, 2022, to Conspiracy to Transport Illegal Aliens for Profit. Agents from Homeland Security Investigations-Douglas conducted surveillance and discovered that UNCs were being transported to a house and an apartment in the Phoenix Metro area from various parking lots nearby. During the execution of search warrants, 51 UNCs were found in the house, and 32 UNCs were located in the apartment. As agents searched the house, Lopez-Vargas arrived driving a van and then attempted to leave. Agents stopped the van, and discovered seven UNCs were located inside the vehicle. During the investigation, several UNCs, who had traveled from Mexico, Guatemala, or Honduras, provided statements indicating they had crossed into the United States from Mexico in automobiles, and then arrived at the house or apartment to await further transportation to their final destinations in the United States. It was determined that Lopez-Vargas picked up UNCs at various locations and transported them to the apartment or the house, which were stash houses he managed as part of his role in the conspiracy. Previously, Lopez-Vargas’s co-conspirators, Eleazar Soto-Diaz, 35, and Jesus Gabriel Villela-Duran, 28, both from Michoacan, Mexico, were each sentenced to 13 months and one day in prison for their roles in the conspiracy as supervisors of the stash houses. This prosecution resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security, to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. The investigation in this case was conducted by Homeland Security Investigations-Douglas, in coordination with Homeland Security Investigations-Sells and Phoenix, Enforcement and Removal Office -Phoenix, and Customs and Border Protection’s United States Border Patrol in Tucson and Casa Grande. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution. CASE NUMBER: CR-22-02072-TUC-SHR RELEASE NUMBER: 2023-058_Lopez-Vargas # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: Schuele Boy Pleads Guilty To Racketeering Conspiracy

component: USAO - New York, Western

body_text: BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Roderick Arrington, a/k/a Ra-Ra, 41, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to racketeering conspiracy, which carries a maximum penalty of 20 years in prison and a $250,000 fine. Assistant U.S. Attorneys Jeremiah E. Lenihan and Timothy C. Lynch, who handled the case, stated that Roderick was a member of the Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana. The Government states that one of those acts of violence was the murder of Quincy Balance a/k/a Shooter, at the intersection of Northland and Stevens on the East Side of Buffalo on August 30, 2012. The Schuele Boys believed Balance was involved in the shooting murder of one of their associates on nearby Carl Street four days earlier. During his plea, Arrington denied being involved in the murder of Quincy Balance. The plea is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division; and the New York State Police, under the direction of Major Eugene Staniszewski. Sentencing is scheduled for August 29, 2023, before Judge Wolford.


title: Bridgeport Man Sentenced to Nearly 10 Years in Federal Prison for Stratford and New Haven Robberies

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LATRELL S. MOORE, 33, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 118 months of imprisonment, followed by five years of supervised release, for robbery and firearm offenses. According to court documents and statements made in court, on August 5, 2019, Moore committed an armed robbery of the Dunkin Donuts located on Lordship Boulevard in Stratford, taking approximately $400. On August 12, 2019, he robbed the Santander Bank located on Grand Avenue in New Haven, taking approximately $2,000. Moore was arrested on related state charges on August 14, 2019. At the time of his arrest he possessed a loaded .38 caliber revolver and a .25 caliber semiautomatic handgun. Moore’s criminal history includes convictions for criminal weapon possession and possession of narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. Moore has been detained since his arrest. On March 30, 2022, he pleaded guilty to one count of Hobbs Act robbery, one count of brandishing a firearm during and in relation to a robbery, one count of bank robbery, and one count of count of unlawful possession of a firearm by a felon. Judge Chatigny ordered that the 118-month federal sentence is in addition to the approximately 43 months Moore has already served since his arrest. State charges against Moore are pending. This investigation was conducted by the Federal Bureau of Investigation, the Connecticut State Police and the Stratford, New Haven, and Bridgeport Police Departments. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.


title: Bakersfield Pain Management Doctor Sentenced to Prison for Tax Evasion

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Janardhan Grandhe, 65, of Bakersfield, was sentenced to one year and one day of prison today for tax evasion, U.S. Attorney Phillip A. Talbert announced. According to court documents, Grandhe was a pain management doctor in Bakersfield, doing business as Central Valley Pain Management (CVPM). In 2017, 2018 and 2019, Grandhe willfully filed false tax returns for CVPM with overstated expenses and false individual tax returns for himself that omitted gross receipts he received. In total, Grandhe evaded personal tax liability exceeding $300,000. Between 2017 and 2019, Grandhe provided checks to employees claiming to be reimbursements for employee expenses that were then included as deductions on the CVPM tax returns. Grandhe claimed the reimbursements were for out-of-pocket costs incurred by employees for continuing medical education, meals, mileage, and travel expenses. In many cases, those expenses were never incurred by the employees. Grandhe instead instructed those employees to cash the checks and provide cash back to Grandhe, which he deposited into accounts controlled by him or his family members. Grandhe then provided false documentation to his tax preparer to support the false deductions. According to court documents, between 2017 and 2019, Grandhe also diverted business receipts to his personal bank accounts and hid this money from his tax preparer so that these amounts would not be included as business gross receipts on the CVPM tax returns. The unreported income on the CVPM tax returns resulted in decreased net income on Grandhe’s personal tax returns, reducing his taxes based on false information. This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Jeffrey A. Spivak prosecuted the case.


title: Castine Man Pleads Guilty to Sending Obscene Images to Minor, Attempting to Possess Sexually Explicit Images of Minor, Obstructing Investigation

component: USAO - Maine

body_text: BANGOR, Maine: A Castine man pleaded guilty in U.S. District Court in Bangor today to attempted possession of child sexual abuse material, transfer of obscene material to a minor and obstruction of a federal investigation. According to court records, in late July and early August 2018, Nicholas Wood , 26, used Snapchat to send a series of obscene images of himself to a child under the age of 16. Wood attempted to manipulate the victim into engaging in sex acts with him and sending him sexually explicit images. After being informed by federal agents that they were investigating the use of his Snapchat account to send obscene images to minors, Wood deleted the application and associated data from his phone to prevent its use in the investigation. Wood faces up to 10 years in prison and a $250,000 fine on both the attempted possession of child pornography charge and the transfer of obscene material to a minor charge. He faces up to 20 years in prison and a $250,000 fine for obstruction. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Homeland Security Investigations investigated the case. To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization every time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org/ or 1-800-843-5678 . If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741 . Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’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, visit www.justice.gov/psc . # # #


title: Man admits to hiding meth in air freshener

body_text: CORPUS CHRISTI, Texas – A 57-year-old man has pleaded guilty to possession with intent to distribute more than 180 grams of meth, announced U.S. Attorney Alamdar S. Hamdani. On March 17, authorities encountered Sean Graham at a local restaurant. There, he appeared nervous and soon admitted he had meth in his truck. They searched his truck and found several bags containing approximately 80 grams of meth of the drug in the truck. Law enforcement then obtained a search warrant for his residence where they found an additional 100 grams of meth. Some was located inside an Airwick air freshener. The total weight was approximately 180.4 grams. U.S. District Judge Drew Tipton will impose sentencing July 24. At that time, Graham faces up to life in prison and a possible $10 million maximum fine. Graham has been and will remain in custody pending that hearing. Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and the Corpus Christi Police Department. Assistant U.S. Attorney Patrick Overman is prosecuting the case.


title: Bakersfield Man Pleads Guilty to Distributing Fentanyl

body_text: FRESNO, Calif. — Marcus Randall, 39, of Bakersfield, pleaded guilty today to conspiring to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced. According to court documents, on Dec. 16, 2020, Randall sold fentanyl pills to a victim who later ingested the pills, resulting in her overdose death. This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the U.S. Secret Service, the Bakersfield Police Department, the Kern County Probation Department, and the California Highway Patrol. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca are prosecuting the case. Randall is scheduled to be sentenced on Aug. 7, 2023, by U.S. District Judge Jennifer L. Thurston. Randall faces a maximum statutory penalty of 20 years in prison and a fine up to $1 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.


title: Felon Pleads Guilty To Possessing A Firearm

body_text: U.S. Attorney Trini E. Ross announced today that Maurice Chatman, 42, of Rochester, NY, pleaded guilty before U.S. Magistrate Judge Mark W. Pedersen to being a felon in possession of a firearm, which carries a maximum penalty of 15 years in prison, and a fine of $250,000 or both. Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that on August 3, 2022, Rochester Police Officers responded to Post Avenue and Aberdeen Street after receiving a report of a male standing at the corner holding a gun. Officers also learned that the male was seen walking down Aberdeen Street carrying the gun. Subsequently, Chatman was observed standing in front of 91 Aberdeen Street holding a rifle. Officers went to 91 Aberdeen Street and confronted Chatman in the driveway. They observed the rifle nearby on top of a folding table. Officers arrested Chatman and seized the rifle. Chatman was previously convicted of felonies in 1997, 2004, 2011, and 2015, and is legally prohibited from possessing a firearm. The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito. Sentencing is scheduled for July 26, 2023, at 2:00 p.m. before U.S. District Judge David G. Larimer. # # # #


title: Former Buffalo Man Pleads Guilty To COVID Fraud

body_text: BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Mohammad Fares, 28, formerly of Buffalo, now of Florida, who was convicted of theft of government property, was sentenced to serve to three years supervised release, perform 200 hours of community service, and pay restitution of approximately $43,000 by U.S. District Judge Lawrence J. Vilardo. Assistant U.S. Attorney Charles M. Kruly, who handled the case, stated that on May 18, 2020, Fares submitted an online application to the New York State Department of Labor for unemployment insurance benefits, stating that he did not work any day during the week of May 18, 2020; that he did not have gross earnings over $504; that his last day of work was March 21, 2020; and that his workplace had closed due to the COVID-19 pandemic. At the time, Fares co-owned a trucking company in Buffalo, for which he managed truck drivers and coordinated shipments. On June 11, 2020, Fares received $3,600 in Federal Pandemic Unemployment Compensation benefits. Every week through May 2, 2021, Fares certified to that he did not work during the prior week and had not returned to work. In doing so, Fares certified his continued eligibility for Federal Pandemic Unemployment Compensation and NYS Department of Labor unemployment benefits. During this time period, Fares continued to manage the trucking company. Fares received, in total, approximately $43,320 in unemployment benefits and Federal Pandemic Unemployment Compensation. The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. It expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for benefits. The CARES Act provided for three new UI programs: Pandemic Unemployment Assistance (PUA); Federal Pandemic Unemployment Compensation (FPUC); and Pandemic Emergency Unemployment Compensation (PEUC). Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . The sentencing is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, Northeast Region, under the direction of Special Agent-in-Charge Jonathan Mellone and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury. # # # #


title: Gree Subsidiary Sentenced for Failure to Report Dangerous Dehumidifiers

component: USAO - California, Central

body_text: LOS ANGELES – The City of Industry-based subsidiary of a Chinese appliance company was sentenced today to pay a $500,000 criminal fine after pleading guilty to failing to notify the U.S. Consumer Product Safety Commission (CPSC) that millions of dehumidifiers it sold to domestic consumers were defective and could catch fire. Gree USA Inc. was sentenced this morning after pleading guilty in January to a felony violation of the Consumer Product Safety Act (CPSA). The fine, along with provisions to pay restitution to victims, was part of a $91 million resolution with three related Gree companies that represents the first corporate criminal enforcement action ever brought under the CPSA. Gree USA, a U.S. subsidiary of Hong Kong Gree Electric Appliances Sales Co., Ltd. (Gree Hong Kong), entered into a plea agreement in connection with a criminal information filed in 2021. Gree USA pleaded guilty to one felony count under the CPSA of willfully failing to report consumer product safety information to the CPSC. Gree Electric Appliances, Inc. of Zhuhai (Gree Zhuhai), a global appliance manufacturer headquartered in Zhuhai, China, and Gree Hong Kong entered into a deferred prosecution agreement (DPA) in connection with the same case. Under the terms of the DPA, Gree Zhuhai and Gree Hong Kong agreed to a total monetary penalty of $91 million and also agreed to provide restitution for any uncompensated victims of fires caused by the companies’ defective dehumidifiers. Consistent with Justice Department policy, the DPA with Gree Zhuhai and Gree Hong Kong credits the Gree Companies’ earlier payment of $15.45 million in civil penalties to the CPSC against the agreed-upon $91 million total monetary penalty. According to court filings, Gree Zhuhai, Gree Hong Kong and Gree USA (collectively, the Gree Companies) knew their dehumidifiers were defective, failed to meet applicable safety standards, and could catch fire, but the companies failed to report that information to the CPSC for months. The companies reported and recalled the dehumidifiers only after consumer complaints of fires and resulting harm continued to mount. “This corporation endangered the safety of American consumers by failing to promptly report a known problem with their defective humidifiers,” said United States Attorney Martin Estrada. “Fortunately, authorities were able to stop this practice before Gree USA could cause greater harm. This historic case underscores our commitment to protect the public from dangerous products that could cause consumers real harm and to hold accountable corporate entities who knowing violate our laws in promotion of their greed.” “Homeland Security Investigations (HSI) works tirelessly to protect the American consumer from health and safety risks posed by sub-standard products entering the United States,” said HSI Los Angeles Acting Special in Charge Eddy Wang. “HSI, the Department of Justice, and the Consumer Protection Safety Commission will continue to hold corporations accountable for placing profits above people.” As part of the Gree USA plea agreement and the Gree Zhuhai and Gree Hong Kong DPA, the Gree Companies admitted that, between 2007 and 2013, they sold in the United States more than two million dehumidifiers manufactured by Gree Zhuhai and imported by Gree Hong Kong. In September 2012, employees of the Gree Companies, including high-level executives, learned that the Gree dehumidifiers had defects that could cause them to overheat and catch fire, and that consumers had reported fires caused by the dehumidifiers. Those same employees also knew of the obligation to report dangerous consumer products to the CPSC. Despite this knowledge, Gree USA continued to sell the defective dehumidifiers in the United States for at least another six months. The Gree Companies delayed reporting knowledge of the fires to the CPSC for approximately six months and did not report the defects in the dehumidifiers for approximately nine months. Ultimately, Gree Zhuhai recalled the defective dehumidifiers almost a year after learning about the products’ dangerous defects. “Today’s sentencing of Gree USA is part of the Department of Justice’s ongoing efforts to hold accountable companies and executives that purposefully delay reporting dangerous consumer products to the CPSC,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will continue to work closely with the CPSC to ensure consumers’ safety.” “Today’s sentencing should serve as an example that companies will be held to account when they put profits before consumer safety,” said Chair Alex Hoehn-Saric of the CPSC. “The egregious behavior detailed in this case cannot be tolerated, and we are grateful for the support of the Department of Justice in bringing this company to justice and keeping consumers safe.” The United States Attorney’s Office and the Consumer Protection Branch of the Justice Department’s Civil Division previously indicted Charley Loh, 64, of Arcadia, and Simon Chu, 67, of Chino Hills – respectively, the CEO and chief administrative officer of Gree USA – with felony CPSA and wire fraud charges for their alleged roles in the failure to report the defective dehumidifiers. Loh and Chu have pleaded not guilty and are scheduled for trial on November 7 in Los Angeles. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. HSI investigated this case. This matter was prosecuted by Assistant U.S. Attorney Joseph Johns of the Environmental and Community Safety Crimes Section, along with Assistant Director Allan Gordus and Trial Attorneys Natalie Sanders and Maryann McGuire of the Justice Department’s Consumer Protection Branch. Patricia Vieira of the CPSC’s Office of General Counsel provided substantial assistance.


title: Bookkeeper Sentenced to 29 Months in Prison

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – April 24, 2023 SAN DIEGO – Former bookkeeper Susan Ann Sears was sentenced in federal court today to 29 months in prison for embezzling more than $765,000 from Shapery Enterprises and nearly $165,000 from Hope Campbell Realty Inc. Sears was also ordered to pay $839,419.22 in restitution—$674,673.93 to American Express and $164,745.29 to Hope Campbell Realty. Sears served as the bookkeeper for Shapery Enterprises from July 2018 to November 2019. As the bookkeeper, Sears had access to the business’s bank accounts, American Express credit card, and accounting programs. In her plea agreement, Sears admitted that she opened a personal American Express credit card in the name of a family member, obtained American Express cards for herself and family members, and used Shapery Enterprises’ bank account to pay the personal American Express account. Sears made the payments appear to be legitimate business expenses by entering “S. Sharpery,” which is one letter off from the CEO’s last name of Shapery. Sears also issued herself unauthorized checks and falsified entries in the business’ accounting programs. In total, Sears stole more than $765,000 from Shapery Enterprises. Since American Express reimbursed Shapery Enterprises $674,673.93, Sears admitted that the loss to American Express was $674,673.93. After Sears was fired from Shapery Enterprises in November 2019 and the government notified her that she was under investigation for wire fraud, Sears was employed by Hope Campbell Realty as its bookkeeper from February 2021 to November 2021. Sears again abused her position of trust and issued herself and her family members unauthorized checks. Sears also falsified entries in Hope Campbell Realty’s accounting programs to make it appear that the checks were for legitimate business purposes. Between March 2021 and November 2021, Sears stole nearly $165,000 from Hope Campbell Realty. “Sears took advantage of her employers’ trust and treated their bank accounts as her personal piggy bank, stealing hundreds of thousands of dollars,” said U.S. Attorney Randy S. Grossman. “This defendant inflicted substantial damage to two San Diego businesses and has been held to account for her conduct.” Grossman thanked the prosecution team and the FBI for their excellent work on this case. “Susan Ann Sears went to great lengths to defraud not one, but two of her employers. Even after learning that she was under investigation, she brazenly continued to abuse her position of trust to feed her own greed,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Embezzlement will always come to light—the short-term benefits are never worth the repercussions. The FBI will continue to identify and investigate those who choose to line their own pockets at the expense of others.” DEFENDANTS Case Number 21cr3189-GPC Susan Ann Sears Age: 64 San Diego, CA SUMMARY OF CHARGES Wire Fraud – Title 18, U.S.C., Section 1343 Maximum penalty: Twenty years in prison and $250,000 fine, or twice the gain/loss, whichever is greater AGENCY Federal Bureau of Investigation


title: Edinburg political consultant convicted of bribery

body_text: McALLEN, Texas – A 52-year-old Edinburg man has entered a guilty plea to federal program bribery, announced U.S. Attorney Alamdar S. Hamdani. Miguel A. Garza admitted his involvement in a scheme to help funnel bribe money from a McAllen-area business owner to certain officials with the City of Edinburg. In exchange, they were to award a city contract to the businessman. “Funneling bribes damages the foundations of city governments, such as Edinburg,” said Hamdani. “Our office will be relentless in seeking justice against actors who threaten to crumble those foundations through their criminal acts.” During the plea today, Garza admitted that during 2019 and 2020, he was acting as a political consultant on behalf of two elected officials in Edinburg. He told a local business owner he could secure votes from the officials relating to contracts the city maintained in exchange for bribe payments to the officials. He then collected a series of payments intending to provide them to the city officials in exchange for their votes. As part of the plea today, Garza admitted to the political payments which totaled $47,235 between approximately June 1, 2019, and March 1, 2020. U.S. District Judge Ricardo H. Hinojosa will impose sentence July 31. At that time, Garza faces up to 10 years in prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing. The FBI conducted the investigation. Assistant U.S. Attorneys Robert L. Guerra Jr. and Arthur R. Jones are prosecuting the case.


title: Former Public Official and California Contractor Sentenced for Bid Rigging and Bribery

body_text: A former Caltrans contract manager and a former contractor were sentenced today in the U.S. District Court for the Eastern District of California in Sacramento for their roles in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts. Choon Foo “Keith” Yong, the former Caltrans contract manager, was sentenced to 49 months’ imprisonment and ordered to pay $984,699.53 in restitution. According to a plea agreement filed on April 11, 2022, Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong also pleaded guilty for accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits that Yong received neared $1 million. William D. Opp, the former contractor, was sentenced to 45 months’ imprisonment and ordered to pay $797,940.23 in restitution. According to a plea agreement filed on Oct. 3, 2022, Opp engaged in the same conspiracy, from early 2015 through at least as late as August 2018. As part of the conspiracy, Opp formed a separate construction company, with his wife as the nominal president, to submit sham bids on Caltrans contracts. During his participation in the conspiracy, Opp and co-conspirators provided nearly $800,000 in cash bribes and other benefits to Yong. Yong and Opp are the second and third co-conspirators to be sentenced in the case. On April 17, 2023, former construction company owner Bill R. Miller was sentenced to 78 months’ imprisonment and ordered to pay nearly $1 million in restitution. “These criminals – including a state employee who sought sales commissions for his role in the bid-rigging scheme – put greed and personal gain ahead of the public trust and are being punished accordingly,” said Director Daniel Glad of the Justice Department’s Procurement Collusion Strike Force (PCSF). “The Antitrust Division and our PCSF partners are on the lookout for those that try to cheat on government contracts.” “A former Caltrans employee and a contractor have been sentenced today for a conspiracy that cheated a state agency out of taxpayer funds and that, if left unchecked, could threaten to undermine public confidence in the proper functioning of government institutions,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “The defendants’ abuse of public trust and the length and breadth of the criminal conduct fully warrant today’s sentences. Bribes have no place in government contracting.” “All government employees are expected to conduct businesses in accordance with both law and policy to ensure the integrity of those transactions and maintain public trust in the agencies they represent,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “No government official should put personal gain ahead of the needs of the communities they represent. The FBI stands ever ready to identify, investigate, and disrupt public corruption to ensure the American public’s trust in the institutions designed to serve and protect them is maintained.” Today’s sentencing is the result of a joint investigation that was conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). Trial Attorneys Christopher J. Carlberg and Tai S. Milder and Assistant U.S. Attorney Lee S. Bickley prosecuted the case. In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state and local. To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to www.justice.gov/procurement-collusion-strike-force .


title: Thai Woman Sentenced for Her Role in International Sex Trafficking Conspiracy

component: USAO - Minnesota

body_text: ST. PAUL, Minn. – Sumalee Intarathong also known as Alice Spencer Warren has been sentenced for her role in a large-scale international Thai sex trafficking organization, announced United States Attorney Andrew M. Luger. According to court documents, the criminal organization conspired to make money by compelling hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States. Before her arrest in Belgium on August 5, 2016, Intarathong, 62, served as a visa broker for the sex trafficking organization. Each trafficked victim was “owned” by Intarathong and her co-conspirators, until the victim could repay an exorbitant “bondage debt” of between $40,000 and $60,000. Intarathong and other co-conspirators arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States. According to court documents, Intarathong and other co-conspirators in the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visitor visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States. One of Intarathong’s victims wrote to the Court: “I am a victim of human trafficking and suffered psychologically because I was afraid that I would be arrested or the traffickers would come hurt or kill me. I was so scared even after the defendants in my case were arrested because I knew them directly. I did not dare go outside and was not able to sleep for a long time.” That victim had to engaged in commercial sex acts with “about seven to eleven customers per day” until she paid off her bondage debt. According to court documents, the organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. Throughout the course of the conspiracy the criminal organization has moved tens of millions of dollars in illegal proceeds from the United States to Thailand and elsewhere. Intarathong was arrested in Belgium in August 2016 and remained in custody there until she was extradited to the United States in February 2021. On November 29, 2022, she pleaded guilty to one count of conspiracy to commit sex trafficking and one count of conspiracy to engage in money laundering. Intarathong, the last of the 38 defendants sentenced in the trafficking scheme, was sentenced today before Senior Judge Donovan W. Frank to time served since her arrest in 2016 and $500,000 in restitution to the victims. In addition, Intarathong agreed to be removed from the United States to Belgium or Thailand and will be turned over to Immigration and Customs Enforcement to carry out the Court’s order. This case was the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office, and Cook County (Illinois) Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2). The Justice Department’s Office of International Affairs provided critical assistance in securing the defendant’s extradition from Belgium. Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino prosecuted the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section.