title: Two New York Men Admit Participating in More Than $25 Million COVID-19 Fraud, other Offenses, including Fentanyl Distribution

component: USAO - New Jersey

body_text: NEWARK, NJ. – Two New York men today admitted conspiring with others to defraud dozens of states to obtain millions of dollars of COVID-19 unemployment benefits; one of the defendants also admitted to fentanyl conspiracy and distribution and conspiring to defraud the IRS of tax credit benefits, U.S. Attorney Philip R. Sellinger announced. Natanael Valdez Brito, aka “El Pocho,” 35, of the Bronx, New York, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to a four-count information charging him with conspiracy to distribute fentanyl, possessing with intent to distribute fentanyl, and two counts of conspiracy to commit wire fraud. Alexander Arismendy Alix Hernandez, 23, of the Bronx, New York, pleaded guilty before Judge Shipp to an information charging him with one count of conspiracy to commit wire fraud. Billy Castro, 33, previously pleaded guilty to the wire fraud conspiracy to which Valdez and Alix pleaded guilty, and Castro and Juan De La Cruz Infante Torres, 52, previously pleaded guilty to the fentanyl offenses to which Valdez pleaded guilty. Both Castro and Infante are awaiting sentencing. The following individuals were previously charged by complaint for the same wire fraud conspiracy: Rafael Josmin Nunez Duarte, 33, and Josmin Rafael Nunez Duarte, aka “Mello,” 33, both of the Bronx, New York; Leonel Frias Espaillat, 32, of Allentown, Pennsylvania; and Abrahan Rivas Rojas, aka “Milandro,” 36, and Yarisa Espaillat, aka “Yari,” 34, both of the Dominican Republic. Nunez, Duarte, Frias, and Espaillat have been released on bond. Rivas remains at large. “The financial benefits provided by the government in response to the COVID-19 pandemic provided enormous relief to Americans who were struggling to get by. Unfortunately, people like the defendants who pleaded guilty today saw the pandemic as an opportunity to enrich themselves illicitly. Our office is focused on combating all types of fraud, especially when it involves exploiting the suffering of others.” U.S. Attorney Philip R. Sellinger “Much of the world has moved on from the pandemic,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Gone are masking, social distancing, and quarantining. However, our work searching out and bringing to justice fraudsters who used COVID-19 as a get-rich-quick scheme forges on even now and will until everyone who broke the law is held accountable. The men pleading guilty to their roles in this conspiracy should serve as a warning to others who think the more time that goes by, they will get away with it. You won't, and we will catch you.” According to documents filed in this case and statements made in court: Valdez and Alix conspired with Castro, Nunez, Duarte, Frias, Rivas, Espaillat, and others to use the personal identifying information of thousands of individuals to create fictitious online profiles claiming to be real people seeking unemployment benefits as a result of the COVID-19 pandemic. The conspirators submitted fraudulent applications to the departments of labor of Puerto Rico and dozens of other states, including Pennsylvania, New York, and New Jersey. Once the fraudulent unemployment benefit applications were approved, the conspirators received unemployment benefit funds through debit cards, which they either cashed out at ATMs or used to make purchases. To date, law enforcement has identified that the unwitting individuals’ information was used to fraudulently obtain more than $25 million in unemployment benefits from approximately 29 states and Puerto Rico. Valdez also conspired with others to attempt to defraud the IRS of more than $1.9 million in tax credit benefits, for which the conspirators received at least $129,446. Valdez and others used personally identifying information to fraudulently apply for $1,800 child tax credit benefits and other benefits from the IRS. When law enforcement searched Valdez’s residence, they recovered hundreds of completed applications in sealed envelopes, which were ready to be mailed to the IRS. In May and June 2021, Valdez conspired with Castro, Infante, and others to distribute substantial quantities of fentanyl. Valdez obtained kilograms of fentanyl from a source of supply in Mexico. Valdez then provided the kilograms to Castro, which he coordinated with Infante to sell. On June 15, 2021, Castro and Infante took approximately 2 kilograms of fentanyl from Castro’s Queens, New York apartment to Clifton, New Jersey, where they were arrested trying to sell it. Law enforcement agents then searched Castro’s apartment and found approximately 2 additional kilograms of fentanyl, along with driver’s licenses, Social Security cards, debit cards, tax forms, bills, and other documents – including COVID-19 unemployment benefits applications and debit cards – in the names of approximately 100 individual victims that were used in furtherance of the unemployment benefit fraud conspiracy. The charges of conspiracy to distribute and possession with intent to distribute fentanyl each carry a maximum sentence of 20 years in prison and a maximum fine of $1 million. The conspiracy to commit wire fraud charges carry a maximum penalty of 20 years in prison and a fine of the greatest of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victims of the offense, whichever is greatest. Sentencing for both defendants is scheduled for Aug. 27, 2024. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan in Newark; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to the guilty pleas and charges. He also thanked the U.S. Department of Labor, Pennsylvania Department of Labor and Industry, and New York Department of Labor for their assistance in the investigation. The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. 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 government is represented by Assistant U.S. Attorneys Mark J. Pesce of the Economic Crimes Unit and Sam Thypin-Bermeo of the OCDETF Unit in Newark. The charges and allegations against Nunez, Duarte, Frias, Rivas, and Espaillat are merely accusations, and the defendants are presumed innocent unless and until proven guilty. alix.information.pdf valdez.information.pdf


title: Bronx Man Sentenced to 42 Months for Bank Fraud and Aggravated Identity Theft

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Antonio Vargas, age 58, of the Bronx, New York, was sentenced today to 42 months in prison for defrauding five Capital Region banks by using fake identifications to withdraw funds from accounts. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement. Vargas previously pled guilty to bank fraud and aggravated identity theft charges. He admitted that in June and July 2022, he presented to bank tellers counterfeit U.S. passport cards and driver’s licenses with his photograph, but with the names and other personal information of real customers of Trustco Bank, Pioneer Bank, Broadview Federal Credit Union, Adirondack Trust Bank and Saratoga National Bank and Trust Company. He fraudulently withdrew a total of $58,000 from the customers’ accounts in Albany, Rensselaer, Saratoga and Schenectady Counties. Vargas perpetrated the same fraudulent scheme in Louisiana and Connecticut before coming to New York. Vargas was arrested by the Saratoga Springs Police Department on July 13, 2022, after he unsuccessfully attempted to withdraw funds from a Saratoga National Bank branch, and has remained in federal custody since then. United States District Judge Mae A. D’Agostino also ordered that Vargas pay restitution to the banks in the amount of $58,000 and serve a 5-year term of supervised release following his release from prison. HSI investigated this case with assistance from the U.S. Secret Service, Diplomatic Security Service, New York State Police, Bethlehem Police Department, North Greenbush Police Department, Rotterdam Police Department, Saratoga County Sheriff’s Office, Saratoga Springs Police Department and Scotia Police Department. Assistant U.S. Attorney Emmet O’Hanlon prosecuted this case.


title: Virginia Man Pleads Guilty to Bank Robbery Conspiracy

body_text: ALBANY, NEW YORK – Brian Tierney a.k.a “Wodanaz,” age 30, of Lynchburg, Virginia, pled guilty today to conspiring to commit bank robbery. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. Tierney admitted that between November 14 and November 27, 2022, he agreed to and planned to commit an armed bank robbery at a branch in Johnstown, New York, with two co-conspirators, Michael Brown, Jr. a.k.a. “Russ,” and Luke Kenna a.k.a. “Lt.” As part of that conspiracy, Kenna conducted surveillance of the bank and purchased items, including weapons, to commit the robbery; Tierney ordered handgun parts for use in the robbery and sent photographs of a handgun and a radio scanning and jamming device for use in robbing the bank to Kenna; and Brown drove to New York to conduct surveillance of the bank with Kenna. Brown pled guilty to conspiracy to commit bank robbery on June 23, 2023. Kenna pled guilty to conspiracy to commit bank robbery and possession of a firearm as a prohibited person on August 17, 2023. Kenna and Brown are both scheduled to be sentenced on June 14, 2024. Sentencing for Tierney is scheduled for August 16, 2024, before Chief United States District Judge Brenda K. Sannes, when Tierney faces a maximum term of 5 years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The FBI Albany Field Office’s Joint Terrorism Task Force (JTTF), which includes FBI Special Agents, and federal, state, and local investigators, including from the New York State Police, investigated the case. The FBI’s Philadelphia Field Office, the FBI’s Richmond Field Office, and the New York State Police Special Investigations Unit also provided assistance. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.


title: Montgomery County Felon Sentenced to 181 Months for Drug and Firearms Offenses

body_text: ALBANY, NEW YORK – Bernardo Tovar, age 34, of Amsterdam, New York, was sentenced today to 181 months in prison for engaging in a drug trafficking conspiracy, for possessing with intent to distribute fentanyl pills, cocaine, and methamphetamine, and for possessing a firearm in furtherance of a drug trafficking crime. United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) made the announcement. As part of his prior guilty plea, Tovar admitted that from May 2022 to December 2022, he conspired to distribute counterfeit oxycodone pills containing fentanyl, as well as cocaine and methamphetamine. Tovar, who has a prior violent felony conviction for attempted robbery, also admitted to possessing fentanyl pills, cocaine, and methamphetamine, as well as a loaded handgun to protect his drugs and drug proceeds, on December 7, 2022, when law enforcement searched his apartment. Chief United States District Judge Brenda K. Sannes also imposed an 8-year term of post-imprisonment supervised release. Tovar’s alleged co-conspirator, Samuel Payano, was arrested on December 7, 2022, and charged with distribution and possession with intent to distribute a controlled substance (fentanyl). The charges against Payano remain pending and are merely accusations. The defendant is presumed innocent unless and until proven guilty. The DEA and ATF investigated this case, and Assistant United States Attorney Alexander P. Wentworth-Ping is prosecuting the case.


title: Jamaican National Pleads Guilty to Debt Relief Scam

component: Criminal - Computer Crime and Intellectual Property Section

body_text: Sereika Savariau, 37, of Jamaica, pleaded guilty today in U.S. District Court to creating a series of fraudulent debt relief companies that tricked U.S. victims into paying fraudulent processing fees and disclosing sensitive personal identifying information. The announcement was made by U.S. Attorney Matthew M. Graves and Assistant Inspector General for Investigations Sally Luttrell of the Treasury Department, Office of Inspector General. Savariau, also known as Sereika Savariau-Goodison, pleaded guilty to one count of conspiracy to commit wire fraud affecting a financial institution, which carries a potential penalty of 30 years in prison. The Honorable Amit P. Mehta presided over Savariau’s guilty plea and scheduled sentencing for September 19, 2024. As part of her guilty plea, Savariau admitted that from at least June 2016 through September 2018, she and other conspirators created and operated a series of fraudulent debt relief companies that tricked U.S. citizens into paying bogus processing fees and disclosing personal identifying information and identity documents. One of the fraudulent websites said consumers could receive up to $60,000 in government-funded aid to pay their bills. Another claimed consumers could receive up to $25,000 in annual debt relief. Savariau admitted that through their false representations she and her co-conspirators tried to defraud U.S. victims out of more than $550,000. More than 50 individuals sent money to conspirators because of the scheme, most commonly through Western Union, believing the funds were service processing fees. Conspirators also fraudulently used some of the victims’ personal identifying information for other illegal purposes. For example, one victim’s information was used to create a PayPal account for use in the scheme. Her information also was used to apply for and obtain an American Express pre-paid credit card. A different victim’s name and address were used to register one of their fraudulent debt relief sites. Savariau’s conduct directly violated a prior judicial order issued in September 2015 by the Honorable Reggie B. Walton in Case No. 14-CV-1414 that, among other things, permanently restrained her and those working with her from misrepresenting to others that they would reduce substantially consumers’ debts. Savariau was indicted by a federal grand jury in December 2021 and extradited from Jamaica to the United States in September 2023. This case was investigated by the U.S. Department of Treasury’s Office of Inspector General, the Justice Department's Computer Crime and Intellectual Property Section, and the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition of Savariau. The case is being prosecuted by Trial Attorneys Louisa Becker and Ashley Pungello of the Criminal Division's Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Kondi Kleinman for the District of Columbia.


title: Ohio Financial Planner Sentenced to Prison for Promoting an Illegal Charitable Contribution Tax Shelter

component: Tax Division

body_text: A financial planner from Cleveland was sentenced to 20 months in prison for conspiring to defraud the United States by promoting an illegal tax shelter scheme involving false charitable deductions. According to court documents and statements made in court, Rao Garuda was the president and chief executive officer of Associated Concepts Agency Inc. He promoted a fraudulent tax shelter known as the “Ultimate Tax Plan” or the “Advanced Legacy Plan” that was organized, marketed and sold by his co-conspirator, Michael Meyer. They marketed the scheme as a way for high-income clients to reduce their taxes by claiming deductions for charitable donations that the organizers knew were fraudulent. In particular, Garuda and others promoted the scheme as a way for clients to receive the deduction without relinquishing ownership or control over the assets the clients purported to have donated. Garuda continued to sell the scheme despite being warned by several attorneys that the scheme was illegal. Garuda also assisted clients in backdating documents so that clients could claim purported donations on their prior years’ tax returns. In April 2018, the Justice Department filed a civil suit against Meyer seeking to enjoin him from continuing to promote the Ultimate Tax Plan. As part of that litigation, the Justice Department issued civil subpoenas to Garuda’s clients. In response, Garuda created false, backdated documents and directed clients to submit them to the Justice Department. In April 2019, a federal district court permanently enjoined Meyer from organizing, promoting, marketing or selling the Ultimate Tax Plan. In addition to his prison sentence, U.S. District Judge Bridget Meehan Brennan for the Northern District of Ohio ordered Garuda to serve three years of supervised release and to pay $1,506,399 in restitution. Cullen Fischel, Associated Concepts’ chief operating officer, was sentenced to four months in prison, three years of supervised release and was ordered to pay $268,605 in restitution for his role in the scheme. On April 10, Meyer was sentenced to eight years in prison for his role in the scheme. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement. IRS Criminal Investigation is investigating the case. Assistant Chief Michael Boteler of the Tax Division and Assistant U.S. Attorney Elliott Morrison for the Northern District of Ohio are prosecuting the case.


title: Mexican Man Sentenced to Prison for Illegally  Reentering the United States After Being Deported

component: USAO - Iowa, Northern

body_text: A man who illegally returned to the United States after being deported was sentenced today to three months in federal prison. Jorge Luis Laguna-Razo, age 35, a citizen of Mexico illegally present in the United States and residing in Charlotte, North Carolina, received the prison term after a January 31, 2024, guilty plea to one count of illegal reentry into the United States after having been deported. At the guilty plea, Laguna-Razo admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Laguna-Razo was previously deported in October 2017 following his conviction in the Southern District of Texas for illegally entering the United States. He was also deported to Mexico in February 2008. On September 30, 2023, immigration officials learned Laguna-Razo had illegally returned to the United States and found Laguna-Razo at the Tama County Jail following his arrest for operating a motor vehicle while intoxicated. Laguna-Razo was convicted of OWI on January 3, 2024. Laguna-Razo was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Laguna-Razo was sentenced to 92 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Laguna-Razo is being held in the United States Marshal’s custody until he can be turned over to immigration officials. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-CR-02. Follow us on Twitter @USAO_NDIA.


title: Ohio County Man Sentenced for Drug Trafficking

component: USAO - West Virginia, Northern

body_text: WHEELING, WEST VIRGINIA – Devon Alexander Bertram, age 34, of Wheeling, West Virginia, was sentenced to 60 months in federal prison for selling cocaine. According to court documents and statements made in court, Bertram sold cocaine base to a confidential informant near a business on Wheeling Island. Bertram will also be required to report for three years of supervised release following his prison sentence. Assistant U.S. Attorney Carly Nogay prosecuted the case on behalf of the government. This case was investigated by the Ohio Valley Drug Task Force, a HIDTA-funded initiative. U.S. District Judge John Preston Bailey presided. ###


title: Omaha Man Sentenced for Methamphetamine Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: United States Attorney Susan Lehr announced that Robert Conley, 50, of Omaha, Nebraska, was sentenced April 12, 2024, in federal court in Omaha, for his involvement in a methamphetamine conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Conley to 222 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. As part of a long-term investigation into a Mexican-based Drug Trafficking Organization (DTO), DEA identified Maria Reyes-Monge as a meth distributor for the Omaha metro area. As part of the investigation, Reyes-Monge was kept under electronic and physical surveillance. She was observed on numerous occasions meeting with local dealers and supplying them with Mexican-imported meth. On October 3, 2022, Reyes-Monge was observed going to the Walgreen’s parking lot at 24th and L Street. In the parking lot, agents observed a vehicle meet with Reyes-Monge that was consistent with a hand-to-hand narcotics transaction. After meeting with Reyes-Monge, the vehicle was stopped and Robert Conley was identified as the passenger. During a search of the vehicle, officers located 121 grams of pure meth. Conley admitted the meth was his. At sentencing, it was determined that Conley was subject to the enhanced penalties for being a career offender. Conley had multiple serious drug felonies which resulted in the sentence being increased to 222 months’ imprisonment. On January 5, 2024, Reyes-Monge was sentenced to a term of imprisonment of 210 months. 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 . This case was investigated by the DEA, Omaha Police Department, and Bellevue Police Department.


title: Puerto Rico Police Officer Indicted on Child Exploitation Charges

component: USAO - Puerto Rico

body_text: SAN JUAN, Puerto Rico – An officer from the Puerto Rico Police Bureau was arrested on criminal charges related to child exploitation conduct. On April 15, 2024, Special Agents from Homeland Security Investigations (HSI) San Juan arrested Luis Javier Pérez-Badillo, a 49-year-old man from Aguadilla, P.R. A federal grand jury indicted Pérez-Badillo on April 10, 2024, with a three-count indictment including Production of Child Pornography, Transportation of Child Pornography and Possession of Child Pornography. From on or about October 11, 2023, through February 21, 2024, Luis Javier Pérez-Badillo used a cellular phone to knowingly employ, use, persuade, induce, entice, and coerce a twelve-year-old female minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct and to transport child pornography. Pérez-Badillo knowingly possessed, and accessed with intent to view, images of child pornography of a twelve-year-old minor using a cellphone device with internet capabilities. “The U.S. Attorney’s Office will continue to work with its law enforcement partners to aggressively investigate and prosecute persons who exploit minors for sexual purposes,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “The defendant, who was entrusted by the community to serve and protect, violated that trust by sexually exploiting a child. As this case demonstrates, those who prey on children will be prosecuted to the fullest extent of the law.” HSI Special Agent in Charge Rebecca González-Ramos stated: “This individual does not represent our police officers, who are a prestige force that day by day sacrifice their lives to protect our community. This individual represents a predator that abused his position of public trust to engage in a despicable act. The Puerto Rico Crimes Against Children Task Force mission is to protect our children but most importantly to send a clear message that nobody is above the law, our children are sacred, and we will exhaust all resources in protecting them.” Assistant United States Attorney Emelina M. Agrait-Barreto is prosecuting the case. The Puerto Rico Crimes Against Children Task Force led by HSI is in charge of the investigation. If convicted for the charges of Production of Child Pornography, the defendant faces a mandatory minimum term of imprisonment of 15 years up to 30 years in prison; for Transportation of Child Pornography the defendant faces a mandatory minimum term of imprisonment of 5 years up to 20 years in prison, and for the count of Possession of Child Pornography, the defendant faces a maximum term of imprisonment of 10 years in prison, all charges will be followed by a term of supervised release after imprisonment of no less than 5 years up to life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. For more information about HSI’s efforts to protect children from sexual predators, visit iGuardians™: Combating Child Predators and to denounce suspicious activities call 787-729-6969. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Bronx Tax Preparer Charged With Filing Tens Of Thousands Of False Tax Returns Causing Over $100 Million In Fraudulent Tax Loss

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”); James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Trevor R. Nelson, the Deputy Inspector General for Investigations for the Treasury Inspector General for Tax Administration (“TIGTA”), announced today the unsealing of an Indictment charging RAFAEL ALVAREZ, a/k/a “the Magician,” with conspiracy to defraud the United States, aiding and abetting the filing of false federal tax returns, attempting to interfere with the administration of the internal revenue laws, making false statements, and aggravated identity theft. These charges arise from ALVAREZ’s alleged orchestration of a wide-ranging scheme to file tens of thousands of federal individual income tax returns that included false information designed to fraudulently reduce the individuals’ tax burden and to make false statements to the IRS. ALVAREZ was arrested today and will be presented in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker. U.S. Attorney Damian Williams said: “Rafael Alvarez was allegedly so prolific in falsifying his customers’ tax returns that he came to be known as ‘the Magician’ for his ability to make customers’ tax burden disappear. But, Alvarez’s sleight of hand was criminal tax fraud, a serious federal tax crime he was allegedly committing for over a decade, depriving the IRS of more than $100 million in tax revenue. Today’s charges, on Tax Day, should serve as an important reminder to tax professionals that when they try to cheat the public fisc they will face grave consequences.” IRS-CI Special Agent in Charge Thomas Fattorusso said: “While Alvarez may have been known as the ‘magician,’ he can’t say abracadabra and make these charges disappear. This one person is charged with creating a criminal enterprise that defrauded the government of more than $100 million. The evidence points to Alvarez’s alleged scheme to file tens of thousands of fraudulent tax returns, while his company, ATAX, grossed over $15 million in revenue in just three years. Today’s arrest was no magical illusion, and Alvarez now faces the reality of his actions.” FBI Assistant Director in Charge James Smith said: “Rafael Alvarez, the CEO, owner, and manager of ATAX New York, allegedly orchestrated one of the largest ever tax fraud schemes by submitting false federal tax returns that ultimately cost the IRS over $100 million in revenue while simultaneously generating $15 million for his own company. Alvarez’s alleged 10-year fraudulent operation is not a magic act, but rather a deliberate slight against the integrity of our country’s tax system. Today, Alvarez must pay the price for his actions – the FBI does not tolerate those who steal from the government for personal economic fortune.” TIGTA Deputy Inspector General Trevor R. Nelson said: “The Treasury Inspector General for Tax Administration aggressively investigates tax preparers who attempt to corrupt our Nation’s tax system. Our mission at TIGTA is to protect the integrity of our Nation’s system of tax administration. We are committed to working with our law enforcement partners to ensure those who endeavor to corrupt Federal tax administration are prosecuted to the fullest extent of the law.” As alleged in the Indictment unsealed in Manhattan federal court and court filings: [1] From at least in or about 2010, up to and including in or about 2020, RAFAEL ALVAREZ was the CEO, owner, and manager of ATAX New York, LLC, also doing business as ATAX New York-Marble Hill, ATAX Marble Hill, ATAX Marble Hill NY, and ATAX Corporation (together, “ATAX”). ATAX was a high-volume tax preparation company located in the Bronx, which prepared approximately 90,000 federal income tax returns for its customers during this period. ALVAREZ both prepared tax returns for ATAX customers and recruited, supervised, and directed other ATAX personnel who in turn prepared tax returns for customers. During this period, ALVAREZ oversaw a sweeping fraudulent scheme, whereby he and his employees submitted false information to the IRS in ATAX customers’ tax returns. This false information, which included, among other things, bogus itemized tax deductions, made-up capital losses, phony business expenses, and fraudulent tax credits, served to fraudulently reduce the customers’ tax liability and increase the customers’ tax refunds from the IRS. In total, ALVAREZ oversaw ATAX’s fraudulent submission of tax returns on behalf of customers that deprived the IRS of substantially more than $100 million in tax revenue. ALVAREZ was so consistent at falsifying ATAX customer tax returns that he became known to ATAX’s customers as “the Magician.” Additionally, as part of ALVAREZ’s unlawful operation of ATAX, he and an ATAX employee made false statements to an IRS Revenue Agent. ALVAREZ’s operation of ATAX helped the company generate at least approximately $15 million in gross revenues over the period of in or about 2016 to in or about 2019. * * * RAFAEL ALVAREZ, 60, of Cortlandt Manor, New York, is charged with one count of conspiracy to defraud the United States and making false statements, each of which carries a maximum sentence of five years in prison. He is also charged with four counts of aiding and assisting preparation of false and fraudulent U.S. individual income tax returns and attempting to interfere with the administration of the internal revenue laws, each of which carries a maximum sentence of three years in prison. He is further charged with aggravated identity theft, which carries a mandatory minimum sentence of two years in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the investigative work of the IRS-CI, FBI, and TIGTA. This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys David R. Felton and Samuel Raymond are in charge of the prosecution. The allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Lincoln Woman Sentenced for Possession with Intent to Distribute Methamphetamine

component: USAO - Nebraska

body_text: United States Attorney Susan Lehr announced that Amanda Gayle Kuhn 33, of Lincoln, Nebraska, was sentenced on Friday, April 12, 2024, in federal court in Lincoln for possession with intent to distribute 5 grams or more of methamphetamine (actual) and 50 grams or more of a mixture or substance containing meth. Senior United States District Judge John M. Gerrard sentenced Kuhn to 84 months’ imprisonment. There is no parole in the federal system. After Kuhn’s release from prison, she will begin a 4-year term of supervised release. On March 8, 2023, a search warrant was executed at the Lincoln residence of Kuhn. During that search, investigators found four baggies of meth weighing a total of 65 grams. Purity testing showed at least 58 grams of actual meth. Investigators also found drug sales records and a digital scale. Kuhn told investigators she and her husband sold meth, and they bought approximately ¼ ounce of meth per week from their source between January of 2023 and the time of the search. This case was investigated by the Lincoln/Lancaster County Drug Task Force.


title: Federal Jury Finds Red Lake Woman Guilty in Child Abuse Case

component: USAO - Minnesota

body_text: MINNEAPOLIS – A federal jury found a Red Lake woman guilty of child neglect and endangerment on the Red Lake Indian Reservation, announced U.S. Attorney Andrew M. Luger. Following a five-day trial before Judge Katherine M. Menendez, Bobbi Jo Johnson, aka Bobbi Jo Kingbird, 46, was convicted last week on one count of child neglect—deprivation of food and health care, and one count of child endangerment. According to evidence presented at trial and court documents, between January 1, 2021, and April 29, 2022, Bobbi Jo Johnson engaged in, aided, and abetted the endangerment, neglect, and abuse of a child who was in the foster care of her sister and co-defendant, Trina Mae Johnson. The abuse included withholding food from the victim to the point of starvation, forcing the victim to stand in uncomfortable positions for long periods of time, and assaulting the victim. As a result of Bobbi Jo Johnson’s and her co-defendants’ abuse, the victim suffered serious and substantial physical, mental, and emotional harm. Trina Mae Johnson pleaded guilty to one count of child torture, one count of child neglect—deprivation of food and health care, one count of child endangerment, and one count of assault on a minor with a dangerous weapon. Ellie Mae Johnson, Patricia Ann Johnson, and Bertram Calvin Lussier, Jr. each pleaded guilty to one count of child endangerment. All five defendants will be sentenced at a later date. This case was investigated by the FBI and the Red Lake Tribal Police Department, with support from the Minnesota Bureau of Criminal Apprehension, the Beltrami County Sherriff’s Office, the Bemidji Police Department, and the Blackduck Police Department. Assistant U.S. Attorneys Ruth S. Shnider and Evan B. Gilead tried the case.


title: Goodell, Iowa Man Pleads Guilty to Possessing a Gun and Ammunition While Being an Illegal User of Marijuana

body_text: A man who possessed a firearm while being an illegal drug user pled guilty on April 11, 2024, in federal court in Sioux City. Larry Wayne Robbins, age 67, from Goodell, Iowa, was convicted of one count of possession of a firearm by an unlawful drug user, marijuana, in violation of 18 U.S.C. § 922(g)(3), and 18 U.S.C. § 924(a)(8). In a plea agreement, Robbins admitted that he waived a gun at a neighbor in Hancock County while that individual was mowing a ditch approximately 300 yards east of Robbins’s house. A search warrant later executed at Robbins’ home located guns, ammunition, and marijuana. Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Robbins remains on supervision with the United States Probation Office until sentencing. Robbins faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorney Kevin C. Fletcher and was investigated by the Hancock County Sheriff’s Office and The Bureau of Alcohol, Tobacco, Firearms, and Explosives. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-CR-03031. Follow us on Twitter @USAO_NDIA.


title: Fort Dodge Man Pleads Guilty to Distributing More Than Two Pounds of Methamphetamine

body_text: A man who distributed methamphetamine out of a hotel room pled guilty on April 11, 2024, in federal court in Sioux City. Jordan Todd Taylor, age 34, from Fort Dodge, Iowa, was convicted of one count of possession with intent to distribute methamphetamine. In a plea agreement, Taylor admitted that he distributed more than 2 pounds of methamphetamine out of a hotel room in Fort Dodge from August 2023 through September 2023. Law enforcement executed a search warrant of Taylor’s room on September 29, 2023, and observed him dumping a product in the toilet and located additional methamphetamine, several hundred dollars cash, and drug distribution paraphernalia. Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Taylor remains in custody of the United States Marshal pending sentencing. Taylor faces a mandatory minimum sentence of 10 years’ imprisonment, a $10,000,000 fine, and 5 years of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorney Kevin C. Fletcher and was investigated by the Iowa Division of Narcotics Enforcement, the Webster County Sheriff’s Office, the Fort Dodge Police Department, and the Iowa State Patrol. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-CR-03041. Follow us on Twitter @USAO_NDIA.


title: Valluco gang member imprisoned for possession of various firearms and ammunition

component: USAO - Texas, Southern

body_text: McALLEN, Texas – A 42-year-old San Juan resident has been sentenced for being a felon in possession of multiple firearms, announced U.S. Attorney Alamdar S. Hamdani. Daniel Garza pleaded guilty Nov. 30, 2023. Chief U.S. District Judge Randy Crane has now ordered Garza to serve 70 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard evidence of additional firearms Garza possessed. Garza is a known member of the Vallucos criminal street gang. With several convictions for violent, weapons-related offenses, he is prohibited from possessing firearms or ammunition per federal law. Law enforcement believed he was in such possession of prohibited items and launched an investigation. That led them to his residence June 27, 2023, where they executed a search warrant and discovered two firearms, body armor, a mask and a bag of firearm magazines. Authorities subsequently reviewed Garza’s social media and obtained recent photographs of him in possession of several other firearms including a belt-fed rifle and a firearm he claimed was fully automatic. Garza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; Texas Department of Public Safety and police departments in Edinburg and San Juan conducted the joint investigation. Assistant U.S. Attorney Cahal P. McColgan prosecuted the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.


title: Former Lobo Football Player Guilty of Robbing Postal Carrier

component: USAO - New Mexico

body_text: ALBUQUERQUE – A former Lobo football player was convicted by a federal jury, after less than two hours of deliberation, robbing a postal carrier, stealing an arrow key belonging to the United States Postal Service, and being a prohibited person in possession of a firearm. According to court documents and evidence presented at trial, on January 18, 2022, Rashawn Boyce , 28, of Albuquerque, and his co-defendant, Marquae Kirkendoll, 23, of Chicago, Illinois, approached a mail carrier while he was sitting in his truck near Louisiana and Central, pulled him out of his truck slammed him on the ground. The mail carrier testified that each suspect put a pistol to his head and demanded his keys. The mail carrier handed over his keys before a neighbor who witnessed the altercation intervened, but Boyce and Kirkendoll ran back to their car and took off. The mail carrier was injured in the attack and feared for his life. Following the attack, investigators from the U.S. Postal Inspectors Service received an anonymous tip leading them to Boyce . Investigators surveilled Boyce for several days while investigating him and eventually executed a search warrant on Boyce ’s apartment. There they found the clothing Boyce could be seen wearing in video of the attack. A revolver, and two semiautomatic guns were seized. During a subsequent interview, Boyce named Kirkendoll as his accomplice. Kirkendoll pled guilty in federal court to conspiracy and faces not more than 20 years in prison at sentencing. The Court ordered that Boyce remain in detention pending sentencing, which has not been scheduled. At sentencing, Boyce faces up to ten years in prison followed by three years of supervised release. There is no parole in the federal system. Boyce is also under indictment for trafficking methamphetamine into the Cibola County Correctional Center in May 2022, while being held on the robbery case. The trial for those charges is scheduled for later this year. U.S. Attorney Alexander M.M. Uballez and Glen Henderson, Inspector in Charge of the Phoenix Division of the Postal Inspection Service, made the announcement today. The United States Postal Inspection Service investigated this case with assistance from Homeland Security Investigations. Assistant U.S. Attorneys Letitia Carroll Simms and Joseph Spindle prosecuted the case. # # #


title: Nebraska Man Indicted for Multi-Million Dollar "Cryptojacking" Scheme

component: USAO - New York, Eastern

body_text: Today, an indictment was unsealed charging Charles O. Parks III, also known as “CP3O,” with operating a large-scale illegal “cryptojacking” operation. As part of the scheme, Parks defrauded two well-known providers of cloud computing services out of more than $3.5 million worth of computing resources in order to mine cryptocurrency worth nearly $1 million. Parks was charged with wire fraud, money laundering and engaging in unlawful monetary transactions in connection with the scheme. Parks was arrested on April 13, 2024 in Nebraska and is scheduled to make his initial appearance in federal court in Omaha on April 16, 2024. Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the arrest and charges. “As alleged, by hijacking cloud providers’ computing power, Parks stole millions worth of powerful computing resources to acquire cryptocurrency,” stated United States Attorney Peace. “This Office will continue to prioritize prosecuting criminal actors who use new, sophisticated technology to engage in the old scheme of fraud and deceit.” Mr. Peace expressed his appreciation to the FBI’s New York Cyber Crimes Task Force (CCTF) and the United States Attorney’s Office for the District of Nebraska for their assistance on this case. “Charles Parks, also known as CP3O, allegedly created a cryptojacking scheme to defraud prominent cloud service providers of millions and illegally mine approximately $1M in cryptocurrency for personal use. Criminals are becoming more adept at manipulating digital tools and hiding behind advanced technology, which often causes significant financial damage to their victims. The FBI is committed to the steadfast pursuit of those who attempt to develop innovative techniques to commit crimes,” stated FBI Assistant Director-in-Charge Smith. “This arrest illustrates the power of law enforcement joining forces with the private sector to identify and track down cybercriminals, and to put an end to their sophisticated thievery,” stated NYPD Commissioner Caban. “While the threat landscape in this space is growing in complexity and depth, the NYPD and our federal partners continue to ably confront malicious actors even as they adopt new tactics.” “Cryptojacking,” also referred to as malicious cryptomining, is the unauthorized use or hijacking of another party’s resources, such as electricity, hardware or computing power to mine cryptocurrency. As alleged in the indictment, from in or about January 2021 through August 2021, Parks created and used a variety of names, corporate affiliations and email addresses, including emails with domains from corporate entities he operated called “MultiMillionaire LLC” and “CP3O LLC,” to register numerous accounts with the cloud providers and to gain access to massive amounts of computing processing power and storage that he did not pay for. Parks used those fraudulently obtained resources to mine various cryptocurrencies including Ether (ETH), Litecoin (LTC) and Monero (XMR). Parks tricked the providers into approving heightened privileges and benefits, including elevated levels of cloud computing services and deferred billing accommodations, and deflected inquiries from the providers regarding questionable data usage and mounting unpaid subscription balances. Parks converted and laundered the cryptocurrency proceeds through cryptocurrency exchanges, a non-fungible token (NFT) marketplace, an online payment provider, and traditional bank accounts, in order to disguise the audit trail and disassociate the funds from the fraud. Parks also structured various money movements to avoid transaction reporting requirements under federal law. After converting the ill-gotten cryptocurrency into dollars, Parks used the proceeds of the scheme to make extravagant purchases, including a Mercedes Benz luxury car, jewelry and first-class hotel and travel expenses. The charges in the indictment are allegations, and Parks is presumed innocent unless and until proven guilty. If convicted, Parks faces a maximum sentence of 20 years’ imprisonment on the wire fraud and money laundering charges and 10 years’ imprisonment on the unlawful monetary transactions charges. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Andrew Reich and Artie McConnell are in charge of the prosecution. The Defendant : CHARLES O. PARKS III (also known as “CP3O”) Age: 45 Omaha, Nebraska E.D.N.Y. Docket No. 24-CR-105 (EK)


title: Former Farm Foreman Pleads Guilty to Extorting H-2A Agricultural Workers and Tax Fraud

component: U.S. Attorneys (USAO)

body_text: BOISE – Ernesto Garibay Garza, 62, of Alamo, Texas, pleaded guilty to extorting H-2A agricultural workers and tax fraud, U.S. Attorney Josh Hurwit announced today. According to court records, Garza worked as a supervisor and foreman of farm workers at F.D.C., an agricultural services company that operates farms throughout Idaho, including in Glenns Ferry. F.D.C. employed H-2A agricultural workers each year from approximately March to November. Between at least 2005 and 2019, and while he served as a supervisor and foreman, Garza was responsible for preparing and submitting payroll timesheets for H-2A workers based upon the number of hours worked. Garza was also responsible for assigning various tasks and projects to the workers that he supervised. Between at least 2014 and 2019, Garza charged certain H-2A agricultural workers a flat fee to work at F.D.C. under the H-2A program, with the fee ranging from approximately $750 to $2,500. Garza charged the fees without F.D.C.’s knowledge or approval, and the H-2A agricultural workers paid the fees to Garza each year because they feared that they would be fired or not allowed to return to F.D.C. under the H-2A program in future years if they did not pay. Garza was not permitted to request or collect such fees under H-2A agricultural worker rules and regulations. Between 2013 and 2019, Garza also deposited approximately $493,153 in unreported income into his personal bank accounts, in part, from the extortion described above as well as a separate scheme to defraud the farm. Garza did not disclose the additional income on his tax return for the years 2013 through 2019, which resulted in false Form 1040 tax returns being prepared and filed. According to the U.S. Citizenship and Immigrations Services , the H-2A program allows U.S. employers who meet certain requirements to bring foreign nationals to the United States to fill temporary agricultural jobs that cannot otherwise be filled because there are not enough U.S. workers who are able, willing, qualified, and available to do the work. Garza is scheduled to be sentenced on July 18, 2024. He faces a maximum penalty of 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Hurwit commended the work of Idaho State Police and Internal Revenue Service - Criminal Investigation, which led to the charges. Assistant U.S. Attorneys Sean Mazorol and Robert Firpo are prosecuting the case. ###


title: Pharr resident imprisoned for downloading child pornography on peer-to-peer sharing platform

body_text: McALLEN, Texas – A 32-year-old man has been ordered to federal prison for receipt of child pornography, announced U.S. Attorney Alamdar S. Hamdani. Vincent Andrew Gutierrez pleaded guilty Oct. 22, 2021. Chief U.S. District Judge Randy Crane has now ordered Gutierrez to serve 84 months in federal prison. At the hearing, the court found the sadomasochistic enhancement applied as some of the images and videos depicting prepubescent minors being forced to engage in sexual acts with adults. Gutierrez was further ordered to pay $3,000 in restitution to a known victim and will serve five years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Gutierrez will also be ordered to re-register as a sex offender. From December 2017 to December 2019, authorities conducted an investigation on BitTorrent, a peer-to-peer file sharing platform. They soon identified a device downloading child pornography videos and images connected to the IP addresses found to be associated with Guiterrez. Law enforcement obtained a search warrant for his home, at which time they seized a laptop and conducted a forensic examination. The investigation revealed the BitTorrent files Gutierrez possessed contained the title PTHC (pre-teen hardcore). PTHC normally refers to images or videos of prepubescent boys and girls engaged in hardcore sexual acts. The investigation revealed Gutierrez had 412 images and four videos of child pornography. He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Homeland Security Investigations - Rio Grande Valley Child Exploitation Investigations Task force conducted the investigation. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources link on that page.


title: Traveler caught bringing in child pornography via POE

body_text: McALLEN, Texas – A 40-year-old Mexican citizen has been sentenced for transporting child pornography, announced U.S. Attorney Alamdar S. Hamdani. Luis Alberto Hernandez-Venegas pleaded guilty Nov. 30, 2023. Chief U.S. District Judge Randy Crane has now ordered Hernandez-Venegas to serve 97 months in federal prison. He will also serve five years on supervised release following completion of his prison term. Hernandez-Venegas will also be ordered to register as a sex offender and as a non-U.S. citizen, he is expected to face removal proceedings. At the hearing, the court heard additional evidence that Hernandez-Venegas knowingly joined a Telegram group well-known for distributing child pornography. From this Telegram chat, he possessed 25 videos of child pornography which equated to approximately 1,875 images. In handing down the sentence, Chief Judge Crane noted that Hernandez helped to provide for a family in Mexico with the intention of engaging in a relationship with their teenage child. On Sept. 26, 2023, Hernandez-Venegas attempted to make entry into the United States from Mexico at the Donna Port of Entry. Authorities referred him to secondary inspection where a preliminary consensual search of his phone revealed images containing child pornography. Law enforcement reviewed the contents of the phone and found multiple images, videos and chat messages depicting child pornography including prepubescent and pubescent male minors performing sexually explicit acts. Hernandez-Venegas acknowledged communicating with male minors between the ages of 15 and 17. He also admitted to being in a relationship with a 15-year-old male who resides in Mexico and identified images of him on his cellphone. He said he knowingly and intentionally possessed, received and viewed child pornography. Hernandez-Venegas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Alexa D. Parcell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources tab on that page .


title: Conspirators Sentenced For Smuggling Narcotics Into The Hillsborough County Jail, Resulting In Serious Bodily Injury To An Inmate

component: USAO - Florida, Middle

body_text: Tampa, Florida – U.S. District Judge William F. Jung has sentenced Seneca Dukes (42, Tampa), David Marty (43, Tampa), Emmanuel Gotay Hernandez (34, Tampa), Miriam Marti-Benning (49, Tampa), and Michelle Lipinski (35, Tampa) to federal prison for conspiracy to distribute fentanyl and methamphetamine resulting in serious bodily injury. Dukes and Marty, who were the leaders of the conspiracy, were sentenced to 26 years and 25 years, respectively. Gotay Hernandez was sentenced to 9 years, Marti-Benning to 8 years and 2 months, and Lipinski to 5 years and 3 months in federal prison. Dukes and Marty pleaded guilty on October 23, 2023, the day their jury trial was to commence. Gotay Hernandez pleaded guilty on October 16, 2023, Marti-Benning pleaded guilty on November 14, 2022, and Lipinski pleaded guilty on August 11, 2022. According to court proceedings and documents, in March 2021, the group conspired to obtain controlled substances and smuggle them into the Hillsborough County Falkenburg Road Jail. Dukes and Marty were housed in the same pod at the jail, and Lipinski, who worked as a nurse at the jail, routinely visited their pod. Dukes developed a relationship with Lipinski and asked her to meet with Marti-Benning to get packages from her and bring them to him during her rounds. Marty had his sister, Marti-Benning, obtain controlled substances, package them, and give them to Lipinski. Marty also enlisted the help of Gotay Hernandez, who previously was an inmate in the same pod of the jail as Dukes and Marty. Gotay Hernandez obtained fentanyl, and, at Marty’s direction, provided it to Marti-Benning, who in turn provided it to Lipinski. On March 29, 2021, Lipinski smuggled packages containing fentanyl and methamphetamine into the jail during her rounds and delivered them to Dukes. The next morning, an inmate in the pod overdosed on the fentanyl, but jail medical personnel saved his life by administering Narcan. This case was investigated by the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Michael Sinacore and Samantha Newman.


title: Yolo County Insurance Broker Sentenced for Identity Theft

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Robert Kirby Wells, 64, of Woodland, was sentenced today to two years in prison for aggravated identity theft, U.S. Attorney Phillip A. Talbert announced. According to court documents, Wells served as an insurance broker for a company located in Denver, Colorado, that owned multifamily and commercial properties throughout the United States. Wells was responsible for obtaining several types of insurance coverage for the company’s properties, including umbrella liability coverage. Wells fraudulently represented to the company that he obtained umbrella coverage for properties when, in fact, he did not. Wells then invoiced and was paid for purported premiums associated with the umbrella liability policies that he had never obtained. At times, after Wells received full payment for premiums associated with coverage he obtained for the company, as well as umbrella coverage he did not obtain, Wells secured loans purportedly to pay for the same premiums. He did so by falsely representing that he was financing the premiums on the company’s behalf and using the identities of a managing principal and employee of the company without their authorization. This case was the product of an investigation by the Federal Housing Finance Agency Office of Inspector General, the Department of Housing and Urban Development Office of Inspector General, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.


title: New Jersey Businessman Sentenced to Six Months’ Imprisonment for Tax Violations

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Agostino Perna was sentenced by United States District Court Judge Jeffrey L. Schmehl to six months in federal prison and six months of home confinement for tax crimes. Perna was also ordered to pay a $25,000 fine and $455,463 in restitution. Perna pleaded guilty in 2023, admitting that he assisted in the filing of false corporate tax returns and filed false personal income tax returns, with a total loss to the government of $455,463. Perna was the co-owner and operator of a business called Life Quest, which sells body parts for medical purposes. In this role, he caused false corporate income tax returns for Life Quest to be filed for tax years 2014 through 2019. These returns did not report substantial amounts of the business’ income. This omission occurred because Perna concealed from both his business partner and Life Quest’s accountant/tax preparer that Perna had been receiving significant gross receipts – totaling $332,157 – from certain Life Quest clients, which he ultimately diverted to himself. Perna filed false personal income tax returns over the same six-year period. First, he failed to report the over $300,000 of Life Quest customer payments that he diverted for his personal use. Second, he omitted from his tax returns over $250,000 of additional income that he received from other businesses he owned. Perna obtained this income having the businesses reimburse him (as a business expense) for using his personal credit cards to pay business expenses, all while he had those businesses directly pay the credit card bills and deducted the credit card payments again as a business expense. Third, Perna failed to report additional significant amounts of business income of approximately $632,000, and then disguised the distribution of that income to himself by mischaracterizing the income as “loan repayments.” Last, Perna failed to report over $80,000 of rental income that he received from properties that he rented to tenants. “It’s April 15, a day when many people are rushing to file last-minute returns so they can claim refunds or pay what they owe,” said U.S. Attorney Romero. “Our tax system relies on the honesty and integrity of our citizens to do just that — pay what they legitimately owe to the U.S. Treasury. If they don’t, we can’t properly fund government services, which so many people rely on. Perna’s sentence of prison time, fine, and restitution sends the message that failure to pay your taxes will result in significant consequences.” “Corporate and personal income taxes are an integral source of funding for government programs such as Social Security and Medicare,” said Yury Kruty, IRS-CI Special Agent in Charge. “These cases continue to be a priority for IRS-CI and we will aggressively pursue those who do not comply with those tax obligations.” The case was investigated by the Internal Revenue Service - Criminal Investigation and prosecuted by Assistant United States Attorney Eric D. Gill.


title: Chambersburg Man Sentenced To 27 Months In Prison For Preparing False Tax Returns

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Guibbonz Marcellus, age 43, of Chambersburg, Pennsylvania, was sentenced on April 12, 2024, by U.S. District Court Judge Jennifer P. Wilson to 27 months’ imprisonment on 23 counts of aiding and assisting the preparation of false and fraudulent tax returns. Marcellus was convicted following a jury trial in July 2023. According to United States Attorney Gerard M. Karam, Marcellus operated a tax-preparation business in Chambersburg called M&M Confident Multi Services from 2013 to 2016. In an effort to increase refund amounts and generate business, Marcellus regularly included false numbers on the returns he prepared and filed. The returns falsely claimed, among other things, the federal fuel-tax credit, business losses, and deductions for charitable gifts and unreimbursed employee expenses. The Court found that the total loss to the government due to Marcellus’s conduct was over $208,000. The case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Carlo D. Marchioli and former Assistant U.S. Attorney Paul J. Miovas prosecuted the case. # # #


title: Former Owner of Philadelphia CDL School Sentenced to 57 Months in Prison for Bribing CDL Examiner and Witness Tampering

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Vladimir Tsymbalenko, 53, the former owner of Vlad’s CDL School in Philadelphia, PA, was sentenced to 57 months’ imprisonment, three years of supervised release, and a $5,000 fine by United States District Court Judge Jeffrey L. Schmehl for bribing a Commercial Driver’s License examiner to pass some of Tsymbalenko’s students who did not actually pass, or never even took, the CDL examination, and for asking a witness to lie. On October 11, 2023, Tsymbalenko had pleaded guilty to one count of bribery concerning programs receiving federal funds and one count of witness tampering. “The last thing anyone should want on our roads are people behind the wheel of big rigs or school buses with bogus CDL certifications,” said U.S. Attorney Romero. “Licensure standards are intended to ensure that someone has the training and skills needed to safely move these huge vehicles and their cargo — human or otherwise — from Point A to Point B. As Tsymbalenko’s nearly five-year prison sentence shows, my office and our partners will work to hold accountable anyone seeking to evade such critical government regulations.” “This sentencing of Vladimir Tsymbalenko demonstrates the Department of Transportation Office of Inspector General’s (DOT-OIG) commitment to pursuing individuals in the motor carrier industry who are willing to compromise the safety of the traveling public for personal gain,” stated Christopher A. Scharf, Regional Special Agent in Charge for DOT-OIG. “Working with our agency, law enforcement, and prosecutorial partners, we remain focused in our efforts to prevent, detect, and prosecute fraud schemes that compromise the integrity of DOT’s safety programs.” “Corruption and fraud, at any level, is not tolerated, especially for licensing standards designed to keep our community safe,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI will continue to work alongside our federal, state and local partners to pursue those who orchestrate these fraudulent schemes which undermine the integrity of these licenses.” The case was investigated by the Department of Transportation Office of Inspector General and the Federal Bureau of Investigation, with the assistance of the Pennsylvania Department of Transportation and the Pennsylvania State Police, and was prosecuted by Assistant United States Attorney K.T. Newton.


title: U. S. Attorney Clifford D. Johnson Announces a $450,000 Justice Department Grant Award To Elkhart County for Continuums of Care in Support of Youth Success

component: Office of Justice Programs (OJP)

body_text: HAMMOND ― United States Attorney Clifford D. Johnson announced a Department of Justice Grant Award of $450,000 to Elkhart County. This funding will help build continuums of care to support youth success in the Northern District of Indiana. The grant was awarded by the Department’s Office of Justice Programs through the Office of Juvenile Justice and Delinquency Prevention’s (OJJDP) “Building Local Continuums of Care to Support Youth Success” initiative and is part of more than $17 million going to communities nationwide. United States Attorney Clifford D. Johnson said, “I am delighted to announce this award since bolstering both prevention and intervention resources is a cornerstone strategy for my District. This grant award is aimed at reducing youth involvement in violence and decreasing recidivism rates which aligns with my commitment to increase public safety of District residents.” The Continuum of Care framework supports a network of services and opportunities to foster positive youth development and prioritizes community safety and effective program outcomes. This new OJJDP investment leverages decades of evidence-based learning to prevent youth from entering or deepening their involvement in the juvenile justice system and steer them on a path to success. At its core, the continuum of care approach is community-driven, leverages local insights, and addresses youth needs through mentoring, after-school programs, and other prosocial activities. More information about these and other OJP awards can be found on the OJP Grant Awards Page . About the Office of Justice Programs The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its components can be found at www.ojp.gov . About the Office of Juvenile Justice and Delinquency Prevention The Office of Juvenile Justice and Delinquency Prevention provides national leadership, coordination, and resources to prevent and respond to youth delinquency and victimization. The Office helps states, localities, and Tribes develop effective and equitable juvenile justice systems that create safer communities and empower youth to lead productive lives.


title: Nebraska Man Sentenced for Involuntary Manslaughter

component: USAO - South Dakota

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Stapleton, Nebraska, man convicted of Involuntary Manslaughter. The sentencing took place on April 5, 2024. Coenrad Jones, age 22, was sentenced to 18 days custody, followed by supervised release until the time he leaves the United States, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $2,100 in restitution. Jones was indicted for Involuntary Manslaughter by a federal grand jury in October of 2022. He pleaded guilty on January 26, 2024. Jones, a citizen of South Africa, had obtained a work visa and was employed with a farm in Nebraska. On February 1, 2022, shortly after 7:00 pm, Jones was driving westbound on Highway 18, east of Mission, South Dakota, returning to Nebraska after hauling a load of silage. Jones was operating a Freightliner semi, pulling an empty trailer. A Toyota Sienna was traveling in front of Jones. The Sienna was intending a left-hand turn towards the Sinte Gleska University apartments and was stopped in the roadway, waiting for eastbound traffic to clear. Jones was traveling above the posted speed limit of 45 mph and failed to respond in time to the Sienna in the road. Jones collided with the Sienna and a passenger in the van died as a result of the impact. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court. This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the South Dakota Highway Patrol. Assistant U.S. Attorney Abby Roesler prosecuted the case.


title: Rapid City Man Sentenced for Failure to Register as a Sex Offender

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on April 5, 2024. Jason Kimmel, age 42, was sentenced to two years and three months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Kimmel was indicted for Failure to Register as a Sex Offender by a federal grand jury in November of 2023. He pleaded guilty on January 11, 2024. Kimmel was convicted of Sexual Abuse of a Minor on December 12, 2005. As a result of this conviction, Kimmel is required to register pursuant to the Sex Offender Registration and Notification Act. On August 10, 2023, Kimmel registered with the Rapid City Police Department, providing an address in Rapid City as his residence. Kimmel left his registered address on August 28, 2023, and did not update his residence as required. Kimmel remained unregistered until he was arrested in Sioux Falls on September 16, 2023. This case was investigated by the U.S. Marshals Service and the Sioux Falls Police Department. Assistant U.S. Attorney Abby Roesler prosecuted the case. Kimmel was immediately remanded to the custody of the U.S. Marshals Service.


title: Four Charged With Drug Trafficking And Firearms Offenses

body_text: SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jamie Smicherko, age 27, of Avoca, Pennsylvania, Patrick Russin, age 54, of Shavertown, Pennsylvania, Ryan Medar, age 36, of Jenkin Township, Pennsylvania, and Carlos Laurel, age 45, of White Haven, Pennsylvania, were indicted on April 9, 2024, by a federal grand jury on drug trafficking and firearms charges. According to United States Attorney Gerard M. Karam, the indictment alleges that between October, 2023, and April, 2024, Smicherko, Russin, and Medar conspired to distribute over 500 grams of methamphetamine within Luzerne County, Pennsylvania. The indictment also alleges that Smircherko, Russin, Medar, and Laurel conspired to distribute cocaine. The indictment also alleges that Smicherko, Russin, and Medan also distributed quantities of methamphetamine. The indictment further alleges that Medar and Smicherko both trafficked firearms and possessed firearms in furtherance of a drug trafficking crime, and conspired to do the same. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Kingston Police Department, the Plains Township Police Depart, the Wilkes-Barre Police Department, the Pittston Police Department, the Luzerne County Drug Task Force, the Luzerne County District Attorney’s Office, and the Lackawanna County District Attorney’s Office. Assistant U.S. Attorney James M. Buchanan is prosecuting the case. This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms. This case is also 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. The maximum penalty under federal law for these offenses is imprisonment for life, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Felon Pleads Guilty in Connection to Distributing Crack Cocaine, the Illegal Possession of Four Firearms, Ammunition, and a Glock Switch

component: USAO - New Hampshire

body_text: CONCORD – A Manchester man pleaded guilty today in federal court in connection to his distribution of crack cocaine and for being a felon in possession of a firearm, ammunition, and a machine gun conversion device (otherwise known as a “Glock Switch”), U.S. Attorney Jane E. Young announces. Joseph Taylor, 34, pleaded guilty to one count of drug distribution, one count of felon in possession of a firearm, and one count of possession of an unregistered firearm. U.S. District Court Paul J. Barbadoro scheduled sentencing for July 22, 2024. On three occasions in November 2023 and January 2024, Taylor sold crack cocaine to an individual who was cooperating with the Manchester Police Department. When law enforcement searched Taylor’s residence, they found money that had been used in the controlled buys, four firearms, ammunition, magazines and other firearm accessories, and a 3D-printed Glock Switch. One of the firearms had previously been reported to the Manchester Police Department as stolen. Taylor did not register the machine gun conversion device on the National Firearms Registration and Transfer Record (NFRTR) as required by the National Firearms Act. Taylor had previously been convicted of four felonies and was therefore prohibited from possessing firearms and ammunition. The charge of drug distribution provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charge of felon in possession provides for a sentence of up to 15 years in prison and the charge of unregistered possession of a firearm provides for a sentence of up to 10 years in prison. Each of these charges provide for up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney Matthew T. Hunter is prosecuting the case. ###


title: Florida Woman Arrested for Filing False Tax Refund Claims

component: USAO - Florida, Southern

body_text: MIAMI – On April 12, a Florida woman was arrested today on an indictment returned by a federal grand jury on April 4 in Miami that charged her with filing false tax returns. According to the indictment, from 2017 through 2021, Yolanda Dewar, of Sunrise, allegedly filed four false tax returns on behalf of a trust to obtain refunds the trust was not entitled to receive. Specifically, Dewar allegedly filed returns falsely reporting that the trust earned significant income, made payments to the IRS, and had federal taxes withheld on its behalf. In addition, Dewar allegedly falsely claimed that these payments to the IRS were more than the tax the trust otherwise owed, thereby entitling it to large refunds. Dewar allegedly continued this conduct even after the IRS notified her that her claims were frivolous. Dewar allegedly sought refunds totaling over $1.9 million, of which the IRS paid approximately $500,000. Dewar allegedly used some of the fraudulently obtained proceeds to purchase a car for a family member, get plastic surgery and renovate her home. Dewar is charged with four counts of filing false tax returns. If convicted, she faces three years in prison for each count. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement. IRS-CI Miami is investigating the case. Assistant U.S. Attorney Deric Zacca and Trial Attorneys Melissa S. Siskind and Kavitha Bondada of the Justice Department’s Tax Division are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov , under case number 24-cr-60051. ###


title: Competition builds rapport between police officers and local teens

body_text: MIAMI – Rim rattling dunks and long-range scoring from beyond the three-point line provided the action at the recent Fourth Spring Classic Youth & Cops Basketball Tournament at the Betty T. Ferguson Recreational Complex in Miami Gardens. Organized by the Law Enforcement Coordination and Community Outreach Section (LEC/COS) of the U.S. Attorney’s Office, the tournament consisted of 12 teams, each one with six adults from local law enforcement agencies and six teens chosen by said agencies. Many of the teens were standout high school players with energy to burn. The large crowd oohed and aahed whenever they attacked the basket. “There were plenty of fireworks for sure,” said LEC/COS Community Outreach Specialist Corey Mackay. “We had some very talented players—cops and teens—which made it really fun to watch.” Participating agencies included members of the U.S. Attorney’s Office for the Southern District of Florida; Hialeah Police Department; Davie Police Department; Fort Lauderdale Police Department; North Miami Police Department; Miami-Dade Police Department; Miami Gardens Police Department; Miami-Dade Police Department—Intracoastal; Miami Beach Police Department; Florida Highway Patrol (FHP); Opa-Locka Police Department; and Hollywood Police Department. The championship game was a showdown between FHP and North Miami Police Department. The fastbreak-style matchup was closely contested but FHP prevailed in the end. “We had some great teams this time around,” said Tournament Director and LEC/COS Chief J.D. Smith. “The games were exciting to watch, and we had a nice crowd showing support. Basketball is one thing, but we began this event to help establish a rapport between our youth and our law enforcement officers. That’s what I really enjoy watching … the interaction between them.” Smith, a retired supervisor with the Detroit Police Department, knows full well the importance of changing a culture that, too often, amplifies the misconceptions between teens and the police. “You must show teens the human side of police officers, and vice-versa” said Smith. “They are no different from anyone else. But too often all our youth see are authority figures. It’s crucial for them to interact in social settings where they can find commonalities. That’s what we want teens and cops to discover, that if they take time to see past their differences, they’ll see that we’re all human beings. If we can help do that, then it’s worth it.” Multiple agencies participating in the tournament provided refreshments. Miami Gardens Parks & Recreation Department provided the venue. ###


title: Aiken County Man Pleads Guilty to Tax Evasion

component: USAO - South Carolina


title: Readout of Assistant Attorney General Kristen Clarke’s Trip to Los Angeles

component: Civil Rights Division

body_text: Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Los Angeles on April 11 and 12 to continue the division’s tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans. On Thursday, Assistant Attorney General Clarke visited Inglewood High School to speak at a forum hosted by the Western Justice Center (WJC) for junior and senior girls. WJC is part of a collaborative at Inglewood and Morningside High Schools and the Los Angeles County Dream Resource Centers that provide comprehensive services for students facing challenges of living in communities with high levels of violence and poverty. The students raised issues concerning the school to prison pipeline and bullying and harassment in schools. Assistant Attorney General Clarke provided an overview of civil rights and encouraged the students to continue to strive for academic excellence. In the afternoon, Assistant Attorney General Clarke delivered the Allen Neiman and Alan Sieroty Lecture at the University of Southern California’s Gould School of Law (USC Gould) at the invitation of Dean Franita Tolson, the first Black dean and second woman to lead the law school. During the event, AAG Clarke discussed her trajectory from law school to a career in public service, and outlined division efforts to advance racial justice and equity, including securing the department’s largest redlining settlement with City National Bank to address redlining of Black and Latino communities in Los Angeles. AAG Clarke was joined by leaders of the U.S. Attorney’s Office for the Central District of California. Assistant Attorney General Clarke traveled to Roosevelt High School, a predominantly Hispanic high school, in Boyle Heights, California, to speak to students in the Law and Public Service Magnet program. She discussed the division’s work to ensure all students are able to learn in a safe environment and have equal access to educational opportunities. She also spoke with the students about challenges they face in their communities, including access to clean air and clean water, and the need for safe and affordable housing. In the evening, Assistant Attorney General Clarke met with local leaders and student advocates from the Islamic Center of Southern California, Muslim Public Affairs Council, Leo Baeck Temple and the All Saints Church Pasadena. During the meeting, she highlighted the division’s efforts to combat hate crimes and hate incidents and to hold law enforcement accountable when they violate federal civil rights. She underscored the importance of reporting hate crimes and hate incidents, outlined the department’s United Against Hate initiative and underscored the department’s steadfast commitment to investigating and prosecuting unlawful acts of hate in communities across the country. On Friday, Assistant Attorney General Clarke visited Homeboy Industries, a transformative program founded by Father Gregory Boyle that has been improving the lives of former gang members in East Los Angeles and has evolved into the largest gang intervention, rehabilitation, and re-entry program in the world. She toured the facility with the program’s senior leadership and trainees and learned about the wraparound services offered to those looking to rebuild their lives, including counseling, employment and housing opportunities, tattoo removal, tutoring, record expungement and voter registration. She underscored the Civil Rights Division’s commitment to addressing barriers to reentry for people with criminal histories. To conclude the trip, Assistant Attorney General Clarke spoke at a fireside chat at Ms. JD’s We Persist: A Symposium on Women in Law. During a moderated conversation with Executive Director Tara Murray of the Washington Bureau for the National Urban League, Assistant Attorney General Clarke highlighted the division’s work to enforce federal civil rights laws by eliminating barriers to voting, holding law enforcement accountable for misconduct, including the recent prosecution of six officers in Rankin County, Mississippi, for torturing two Black men, and fighting against algorithmic bias and discrimination in the wake of increased use of AI by landlords, employers, courts and more. As part of this tour, Assistant Attorney General Clarke has traveled to underserved communities in Maryland , Georgia , Louisiana , Tennessee , Mississippi , Alabama , Florida , Arkansas and South Carolina to discuss the department’s efforts to protect civil rights. Photo Credit: Inglewood Unified School District. Photo Credit: Louie Mora, Homeboy Industries.


title: Former Veterans Affairs Procurement Supervisor Sentenced to Seven Years in Prison for Pocketing Kickbacks

component: USAO - Illinois, Northern

body_text: CHICAGO — A former procurement supervisor at the Jesse Brown Department of Veterans Affairs Medical Center in Chicago has been sentenced to seven years in federal prison for pocketing kickbacks from the president of a medical supply company to steer the company orders that the VA paid for but never received. THOMAS E. DUNCAN, 40, of Chicago, pleaded guilty last year to one count of wire fraud. In addition to the prison term, U.S. District Judge Steven C. Seeger on Friday ordered Duncan to pay $1,709,344 in restitution. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Gregory Billingsley, Special Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Central Field Office. The government was represented by Assistant U.S. Attorney Heidi Manschreck. While serving as a supervisor in the medical center’s Central Supply department, Duncan received thousands of dollars in kickbacks paid in cash and checks from DANIEL DINGLE, the president of a medical supply company in Dolton, Ill. The checks were made payable to Helping Hands Properties LLC – a third-party entity managed by Duncan – and contained false and misleading memo entries in order to conceal and disguise the existence and purpose of the kickbacks. In exchange for the kickbacks, Duncan used his official position at the VA to fraudulently initiate and approve purchases of products from Dingle’s company, knowing that many of the products would not actually be delivered to the VA. The fraud scheme began in 2012 and continued until 2019. In late 2018, after Duncan became aware that the VA Inspector General’s Office was investigating his conduct, Duncan created fake invoices from Helping Hands purporting to document work performed for Dingle’s company. Duncan also told Dingle to falsely tell investigators that the payments Duncan received from Dingle’s company were for work performed by Helping Hands. Dingle, 53, of Riverdale, Ill., also pleaded guilty to a wire fraud charge. He is awaiting sentencing.


title: Neosho Man Sentenced to 30 Years for Kidnapping Conspiracy, Illegal Firearm

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – A Neosho, Mo., man was sentenced in federal court today for his role in a kidnapping conspiracy that resulted in the torture and death of the victim, and for illegally possessing a firearm. James B. Gibson, also known as “Gibby,” 41, was sentenced by U.S. District Judge M. Douglas Harpool to 30 years in federal prison without parole. On April 18, 2023, Gibson pleaded guilty to his role in a conspiracy to commit kidnapping and to being a felon in possession of a firearm. Co-defendant Lawrence William Vaughan, also known as “Scary Larry,” 52, of Neosho, was sentenced on Nov. 7, 2013, to 25 years in federal prison without parole. Four co-defendants also have pleaded guilty and await sentencing in this case. Russell Eugene Hurtt, also known as “Uncle,” 52, of Greenwood, Mo., is scheduled to be sentenced on Tuesday, April 16. Amy Kay Thomas, 40, of Webb City, Mo., is scheduled to be sentenced on Thursday, April 18. Sentencing hearings have not yet been scheduled for Freddie Lewis Tilton, also known as “Ol’ Boy,” 51, and Carla Jo Ward, 49, both of Joplin, Mo. Gibson admitted that he participated in a conspiracy to kidnap the victim, identified as “M.H.,” in July 2020. Tilton offered Ward and Vaughan $5,000 each to locate and secure M.H. for him. Ward picked up M.H., whom she knew was being sought by Tilton, and took him to Vaughan’s residence. Vaughan texted Tilton, stating “Call me quickly handing (M.H.) to you.” Vaughan and Tilton continued communicating throughout the early morning hours of July 15, 2020. Vaughan sent a text message to Tilton that read, “He’s got 2 guns.” A few hours later, Vaughan sent a text message to Tilton that read, “OK we’ve got both his guns put up,” and “Guns are secure I’m waiting for you.” Tilton, Thomas, and Gibson arrived at Vaughan’s residence in the early morning hours of July 15, 2020. They bound M.H.’s hands with handcuffs, and duct tape was placed around his mouth and other parts of his body. Gibson, Thomas, and others assaulted M.H. for a period of time. M.H. was cut, beaten, and shot at. Gibson admitted he burned M.H. with a blowtorch. Tilton fatally shot M.H. in the head. Gibson and others cleaned up the blood and damage created during the assault and shooting of M.H. They wrapped M.H.’s body in plastic wrap and Gibson transported it to Hurtt’s property. Law enforcement officers executed a search warrant at Hurtt’s property on July 28, 2020, based on information that a deceased body was located on the acreage. When officers attempted to contact the occupants of the residence, Tilton fired multiple shots from inside the residence at the officers. Tilton was apprehended. Officers found M.H.’s body on the property. Officers searched the residence and found a Rigarmi .25-caliber pistol, an Ithaca .22-caliber rifle, a Remington .22-caliber rifle without a serial number, a Harrington and Richardson 12-gauge shotgun, a Ruger 9mm handgun, and a Taurus 9mm handgun without a serial number. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Gibson has two prior felony convictions for resisting arrest, two prior felony convictions for possessing a controlled substance, and prior felony convictions for tampering, assault, and violence by an inmate against an employee of the Department of Corrections or to an inmate. This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Newton County, Mo., Sheriff’s Department, the Neosho, Mo., Police Department, the Joplin, Mo., Police Department, the Ozark Drug Enforcement Team, and the Cherokee County, Kan., Sheriff’s Department. Organized Crime Drug Enforcement Task Force 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.