title: Corficolombiana to Pay $80M to Resolve Foreign Bribery Investigations

component: Criminal Division

body_text: Corporación Financiera Colombiana S.A. (Corficolombiana), a Colombian financial services institution, has agreed to pay over $80 million to resolve parallel bribery investigations by criminal, civil, and administrative authorities in the United States and Colombia stemming from the company’s involvement in a scheme to pay millions of dollars in bribes to high-ranking government officials in Colombia. The U.S. Department of Justice’s resolution is coordinated with authorities in Colombia, as well as the U.S. Securities and Exchange Commission (SEC). According to court documents, Corficolombiana entered into a three-year deferred prosecution agreement (DPA) with the Department in connection with a criminal information filed in the District of Maryland charging the company with conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act (FCPA). Corficolombiana was majority-owned and controlled by Grupo Aval Acciones y Valores S.A., a Colombian holding company and issuer in the United States. According to court documents, between 2012 and 2015, Corficolombiana conspired to offer and pay more than $23 million in bribes to high-ranking Colombian government officials in order to win a contract to construct and operate a highway toll road known as the Ocaña-Gamarra Extension. Corficolombiana conspired with Odebrecht S.A. (Odebrecht), a global construction conglomerate based in Brazil, to pay bribes to Colombian government officials in the executive and legislative branches and to an executive at Colombia’s state-owned infrastructure agency, in order to win the rights to construct and operate the Ocaña-Gamarra Extension. To carry out the bribery scheme, Corficolombiana caused other entities to enter into fictitious contracts with companies associated with intermediaries that passed along the bribe payments to the Colombian government officials. Ultimately, Corficolombiana earned approximately $28.63 million in profits from the corruptly obtained business. “Corficolombiana, together with its co-conspirators, agreed to pay more than $20 million in bribes to high-ranking government officials across the Colombian government to win a massive infrastructure project,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Today’s resolution – the first-ever coordinated with Colombian authorities in a foreign bribery case – reflects the Justice Department’s commitment to working shoulder-to-shoulder with our foreign partners to combat transnational corruption and hold accountable companies that brazenly pay bribes for economic gain.” “Corficolombiana has acknowledged its role in a significant foreign bribery scheme, and for that it is being held accountable,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Under the DPA, the company is paying a substantial criminal penalty and will continue to cooperate with the United States in criminal investigations relating to this conduct. My office is pleased to be part of this first-ever joint FCPA bribery prosecution with Colombian authorities.” Pursuant to the DPA, Corficolombiana will pay a criminal penalty of $40.6 million. The Department has agreed to credit up to half of that criminal penalty against money that the company and its subsidiary, Estudios y Proyectos del Sol S.A.S. (Episol), paid to Colombia’s Superintendencia de Industria y Comercio (SIC), for violations of Colombian laws related to the same conduct, so long as the company and Episol drop their appeals of the SIC resolution. In addition, Corficolombiana will pay over $40 million in disgorgement and prejudgment interest as part of a resolution of the SEC’s parallel investigation. Corficolombiana also agreed to continue cooperating with the Department in any ongoing or future criminal investigations relating to this conduct. In addition, under the agreement, Corficolombiana agreed to continue enhancing its compliance program and providing reports to the Department regarding remediation and the implementation of compliance measures for the term of the DPA. “Today’s resolution shows that justice has a steep price for those who attempt to bribe foreign government officials,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Schemes like these violate the Foreign Corrupt Practices Act and are an attempt to fundamentally undermine the spirit of economic competition. The FBI is dedicated to protecting the integrity of the global marketplace, which means investigating bribes of any amount, and preventing the corruption of officials at all levels.” The Department reached this resolution with Corficolombiana based on a number of factors, including, among others, the nature and seriousness of the offense. Corficolombiana received credit for its cooperation with the Department’s investigation, which included (i) timely providing the facts obtained through the company’s internal investigation; (ii) making numerous detailed factual presentations that distilled certain key factual information; (iii) producing documents that the government may not otherwise have had access to in ways that did not implicate foreign data privacy laws; (iv) providing sworn testimony from Colombian criminal and administrative proceedings of relevant witnesses whom the government could not independently interview; (v) proactively identifying information previously unknown to the government; and (vi) collecting and producing voluminous relevant documents and translations, including documents located outside of the United States. The company promptly engaged in extensive remedial measures including, among other things (i) conducting a root cause analysis of the conduct identified during internal investigations and promptly taking actions to enhance its corporate governance and controls at joint venture entities, as well as improving its oversight of non-controlled joint ventures and investments; (ii) overhauling its compliance program; (iii) enhancing its third-party intermediary risk management process; (iv) implementing a robust process for reporting and investigating allegations of misconduct; (v) establishing a disciplinary process overseen by a cross-functional ethics committee; (vi) conducting testing of its anticorruption compliance program; and (vii) engaging in a periodic review of and updating of its anticorruption compliance program. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 30% reduction off the bottom of the applicable guidelines fine range. The FBI’s International Corruption Squad in Miami is investigating the case. The Justice Department’s Office of International Affairs, Colombia’s Superintendencia de Industria y Comercio, and the Fiscalía General de la Nación provided substantial assistance in the matter. Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem for the District of Maryland are prosecuting the case. The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .


title: Corficolombiana pagará $80 millones de dólares estadounidenses para resolver las investigaciones por soborno en el extranjero

body_text: La Corporación Financiera Colombiana S.A. (Corficolombiana), una institución colombiana de servicios financieros, ha acordado pagar más de $80 millones de dólares estadounidenses para resolver las investigaciones paralelas sobre sobornos realizadas por autoridades penales, civiles y administrativas de los Estados Unidos y Colombia, derivadas del involucramiento de la empresa en un ardid para pagar millones de dólares en sobornos a altos funcionarios del Gobierno de Colombia. La resolución del Departamento de Justicia de EE. UU. se coordina con las autoridades de Colombia, así como con la Comisión de Bolsa y Valores (SEC, por su siglas en inglés) de EE. UU. Según los documentos del tribunal, Corficolombiana firmó un acuerdo de procesamiento diferido (DPA, por sus siglas en inglés) de tres años con el Departamento en relación con una querella penal presentada en el Tribunal de Distrito de Maryland en la que se le imputaba el cargo de asociación delictuosa para violar la disposición contra el soborno de la Ley de Prácticas Corruptas en el Extranjero (FCPA, por sus siglas en inglés). Corficolombiana era propiedad mayoritaria y estaba controlada por el Grupo Aval Acciones y Valores S.A., un holding colombiano y emisor en los Estados Unidos. Según los documentos del tribunal, entre 2012 y 2015, Corficolombiana se unió en una asociación delictuosa para ofrecer y pagar más de $23 millones de dólares estadounidenses en sobornos a altos funcionarios del gobierno colombiano con el fin de obtener un contrato para construir y operar una autopista de peaje conocida como la Ampliación Ocaña-Gamarra. Corficolombiana se unió en una asociación delictuosa con Odebrecht S.A. (Odebrecht), un conglomerado mundial de la construcción con sede en Brasil, para pagar sobornos a funcionarios del gobierno colombiano de las ramas ejecutiva y legislativa y a un ejecutivo de la entidad de infraestructuras de propiedad estatal de Colombia, con el fin de obtener los derechos para construir y operar la Ampliación Ocaña-Gamarra. Para llevar a cabo el ardid de sobornos, Corficolombiana causó que otras entidades firmaran contratos ficticios con empresas asociadas con intermediarios que pasaban los pagos de sobornos a los funcionarios del gobierno colombiano. En última instancia, Corficolombiana obtuvo aproximadamente $28.63 millones de dólares estadounidenses de ganancias provenientes de los negocios obtenidos de forma corrupta. “Corficolombiana, junto con sus coconspiradores, acordó pagar más de $20 millones de dólares estadounidenses en sobornos a altos funcionarios del Gobierno colombiano para conseguir un gran proyecto de infraestructuras,” declaró la fiscal general adjunta en funciones Nicole M. Argentieri, de la División Penal del Departamento de Justicia. “La resolución de hoy, la primera coordinada con las autoridades colombianas en un caso de soborno en el extranjero, refleja el compromiso del Departamento de Justicia de trabajar hombro a hombro con nuestros socios extranjeros para combatir la corrupción transnacional y exigir responsabilidades a las empresas que descaradamente pagan sobornos para obtener beneficios económicos”. “Corficolombiana ha reconocido su papel en un importante ardid de sobornos en el extranjero, y por ello se le exigen responsabilidades,” dijo el fiscal federal del Distrito de Maryland, Erek L. Barron. “En virtud del DPA, la empresa está pagando una importante sanción penal y seguirá cooperando con los Estados Unidos en las investigaciones penales relacionadas con esta conducta. Mi oficina se complace en ser parte de este primer procesamiento conjunto con las autoridades colombianas por sobornos en el marco de la FCPA”. De conformidad con el DPA, Corficolombiana pagará una sanción penal de $40.6 millones de dólares estadounidenses. El Departamento ha acordado descontar hasta la mitad de esa sanción penal del dinero que la empresa y su filial, Estudios y Proyectos del Sol S.A.S. (Episol), pagaron a la Superintendencia de Industria y Comercio (SIC) de Colombia, por violaciones de las leyes colombianas relacionadas con la misma conducta, siempre que la empresa y Episol desistan de apelar la resolución de la SIC. Además, Corficolombiana pagará más de $40 millones de dólares estadounidenses en concepto de reembolso por daños y perjuicios e intereses como parte de la resolución de la investigación paralela de la SEC. De conformidad con el DPA, Corficolombiana ha acordado seguir cooperando con el Departamento en cualquier investigación penal en curso o futura relacionada con esta conducta. Además, en virtud del acuerdo, Corficolombiana acordó seguir mejorando su programa de cumplimiento normativo y proporcionar informes al Departamento en relación con la reparación y la aplicación de medidas de cumplimiento normativo durante el término del DPA. “La resolución de hoy demuestra que la justicia tiene un precio muy alto para quien intenta sobornar a funcionarios de gobiernos extranjeros,” declaró el subdirector Luis Quesada, de la División de Investigaciones Penales del FBI. “Ardides como este violan la Ley de Prácticas Corruptas en el Extranjero y son un intento de socavar fundamentalmente el espíritu de la competencia económica. El FBI se dedica a proteger la integridad del mercado mundial, lo que significa investigar los sobornos de cualquier cuantía y prevenir la corrupción de funcionarios a todos los niveles”. El Departamento llegó a esta resolución con Corficolombiana basándose en una serie de factores, incluso, entre ellos, la naturaleza y gravedad de la infracción. Corficolombiana recibió crédito por su cooperación con la investigación del Departamento, que incluyó (i) la entrega oportuna de los datos obtenidos a través de la investigación interna de la empresa; (ii) la realización de numerosas presentaciones detalladas de hechos que resumían cierta información clave sobre los hechos; (iii) la presentación de documentos a los que, de otro modo, el gobierno no habría tenido acceso de forma que no implicaran leyes extranjeras de privacidad de datos; (iv) la prestación de testimonio jurado de procedimientos penales y administrativos colombianos de testigos relevantes a los que el gobierno no pudo entrevistar de forma independiente; (v) la identificación proactiva de información previamente desconocida para el gobierno; y (vi) la recolección y producción de voluminosos documentos y traducciones relevantes, incluso documentos ubicados fuera de los Estados Unidos.. La empresa emprendió rápidamente amplias medidas correctoras que incluían, entre ellas (i) la realización de un análisis de las causas profundas de las conductas detectadas durante las investigaciones internas y la pronta adopción de medidas para mejorar su gobierno corporativo y sus controles en las entidades de empresas conjuntas, así como la mejora de su supervisión de las empresas conjuntas e inversiones no controladas; (ii) la revisión de su programa de cumplimiento normativo (iii) la mejora de su proceso de gestión de riesgos de terceros intermediarios; (iv) la aplicación de un proceso sólido para informar e investigar alegatos de mala conducta; (v) el establecimiento de un proceso disciplinario supervisado por un comité de ética interfuncional; (vi) la realización de pruebas de su programa de cumplimiento anticorrupción; y (vii) la realización de una revisión periódica y la actualización de su programa de cumplimiento anticorrupción. A la luz de estas consideraciones, la sanción penal calculada con arreglo a las Directrices sobre sentencias de EE. UU. refleja una reducción del 30% de la parte inferior de la gama de multas establecida. La Brigada de Corrupción Internacional del FBI en Miami está investigando el caso. La Oficina de Asuntos Internacionales del Departamento de Justicia, la Superintendencia de Industria y Comercio y la Fiscalía General de la Nación de Colombia proporcionaron asistencia sustancial en el asunto. El fiscal Michael Culhane Harper, de la Sección de Fraude de la División Penal, y el fiscal auxiliar de los EE. UU. David I. Salem para el Distrito de Maryland, están procesando el caso. La Sección de Fraude de la División Penal se encarga de investigar y procesar los asuntos relacionados con la FCPA. Además, puede obtenerse más información sobre la aplicación de la FCPA por el Departamento de Justicia en www.justice.gov/criminal/fraud/fcpa .


title: Odessa Man Indicted in Pecos for Allegedly Attempting to Smuggle Methamphetamine From Mexico to Dallas

component: USAO - Texas, Western

body_text: PECOS, Texas – A federal grand jury in Pecos returned an indictment today charging an Odessa man with importation and possession with intent to deliver methamphetamine. According to the affidavit attached to a complaint, Angel Vargas-Valdivia, 23, attempted to enter the United States from Mexico through the Presidio Port of Entry on Aug. 8. During a Customs and Border Protection inspection, officers noticed evidence of tampering on the rear quarter panels of Vargas’s vehicle, as well as abnormally heavy vehicle doors. X-ray imaging revealed anomalies within the vehicle’s quarter panels, side doors, rear cargo door, trunk and roof. Further inspection revealed 154 bundles weighing approximately 72.2 kilograms. A crystal-like substance extracted from the bundles tested positive for properties of methamphetamine. Vargas-Valdivia made his initial court appearance today before U.S. Magistrate Judge David Fannin of the U.S. District Court for the Western District of Texas. If convicted, he faces a penalty of 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Francisco B. Burrola for the Homeland Security Investigations El Paso Division made the announcement. HSI is investigating the case. Assistant U.S. Attorney Scott Greenbaum is prosecuting the case. An indictment/complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Two California Residents Found Guilty of Conspiring to Launder Drug Kingpin’s Cash

component: USAO - Michigan, Eastern

body_text: DETROIT – A federal jury in Detroit found two California residents guilty yesterday of conspiring to launder money, United States Attorney Dawn N. Ison announced today. Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, and Charles E. Miller, Special Agent in Charge of the Internal Revenue Service, Detroit Field Divisions. Convicted were Teeauna White, 37, and Robin Herndon, 43. The four-week trial was conducted before United States District Judge Terrence Berg. White and Herndon, both of California, participated in a money laundering conspiracy that was led by convicted drug trafficker Maurice McCoy. McCoy was sentenced in March 2023 to 22 years after pleading guilty to drug and money laundering conspiracies. Evidence presented during the trial established that McCoy kept distribution hubs in multiple cities across the U.S., including Novi, Michigan where the organization stored more than 30 kilograms of fentanyl and over half a million dollars that the DEA seized. At the time it was the largest fentanyl seizure in Michigan and one of the largest in the U.S. The seizure was the result of agents’ creative investigative work after they traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active. Agents identified couriers who crisscrossed the U.S. delivering kilograms, transporting bulk currency, or laundering money, leading to multiple arrests and additional seizures in Indianapolis, Indiana, and Baltimore, Maryland where the organization also operated. All identified couriers and large-scale drug customers who were indicted pleaded guilty. The evidence further established that White, who lived with McCoy, lived lavishly off the drug conspiracy’s proceeds, purchasing a Bentley and Mercedes, expensive jewelry, and a half a million-dollar home in the greater Los Angeles area. Herndon assisted McCoy and White by opening multiple bank accounts through which money from the drug conspiracy was used to purchase McCoy and White’s home. “I salute the innovative investigative work of our federal law enforcement partners at the DEA and IRS that unraveled this drug conspiracy and helped tracked down all of the individuals who profited from the conspiracy,” stated U.S. Attorney Dawn Ison. “We will not only seek to hold those accountable who traffic in drugs, but also those who help them hide or launder the illicit proceeds of their crimes.” Today’s announcement should serve as a clear warning to anyone who would use the cover of legitimate business to conceal proceeds derived from narcotics trafficking. Money launderers will be held to the same level of accountability as the drug traffickers they’re partnering with,” said Special Agent in Charge Orville. “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Charles Miller, Special Agent in Charge, IRS Criminal Investigation, Detroit Field Office. “Without these ill-gotten gains, the traffickers cannot finance their organizations. IRS-CI will continue to provide our financial expertise in narcotics investigations, as we work alongside the US Attorney’s Office and our law enforcement partners to bring criminals to justice.” Sentencing is pending for both defendants. The investigation of the case was conducted by the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting, Craig Wininger, and Gjon Juncaj prosecuted the case for the United States. 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 .


title: New York Man Charged with Fraudulently Obtaining More Than $1 Million

component: USAO - New Jersey

body_text: NEWARK, N.J. B A New York man was arrested this morning on charges he fraudulently obtained more than $1 million in a COVID-19 scheme, U.S. Attorney Philip R. Sellinger announced. Terrell Fuller, 33, of Brooklyn, New York, is charged by complaint with one count of wire fraud. Fuller is scheduled to appear this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court. According to documents filed in this case and statements made in court: The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a federal law enacted in or around March 2020 that was designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. The CARES Act enabled the Small Business Association (SBA) to offer funding through the Economic Injury Disaster Loan (EIDL) program to business owners negatively affected by the COVID-19 pandemic. In September 2021, a fraudulent EIDL application was made to the SBA on behalf of a business. The SBA provided $1.2 million in response to the application. According to a representative of the business, the business did not make the application. Approximately $400,000 of the funds paid out by the SBA in response to the application were eventually deposited into bank accounts to which Fuller was the sole signatory. The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense, whichever is greatest. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s arrest. He also thanked the U.S. Postal Inspection Service in Newark, the New York Police Department and FBI – New York for their assistance. The government is represented by Senior Trial Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark. The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty. fuller.complaint.pdf


title: Texas Men Sentenced to Federal Prison for Paducah ATM Theft

component: USAO - Kentucky, Western

body_text: Paducah, KY – Two Houston, Texas men were sentenced yesterday to federal prison for their roles in a theft from a Paducah ATM. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the Federal Bureau of Investigation, and Chief Brian Laird of the Paducah Police Department made the announcement. According to court documents, Otis J. Gibson , 24, was sentenced to 38 months in prison, followed by 3 years of supervised release, for bank larceny and interstate transportation of stolen funds. Eric J. Rhodes , 25, was sentenced to 12 months and one day in prison, followed by 2 years of supervised release, for bank larceny and interstate transportation of stolen funds. On June 10, 2020, Gibson , Rhodes , and unnamed co-conspirators stole cash from a stand-alone ATM located on Highway 60 near the Kentucky Oaks Mall in Paducah. The group used a stolen truck, chain, and pry bars to break open the ATM. Over $150,000 was stolen from the machine. They then traveled across state lines with the stolen cash. There is no parole in the federal system. Gibson was also indicted by a federal grand jury in Missouri for his role in a January 9, 2020, ATM theft in Saint Louis. That indictment was transferred to the Western District of Kentucky. He was also sentenced today to a concurrent prison sentence for bank larceny charged in the Missouri indictment. Gibson and Rhodes were ordered to pay $158,127 in restitution for bank larceny in Paducah. Gibson was ordered to pay an additional $98,748 for bank larceny in Saint Louis. The FBI and the Paducah Police Department investigated the case. Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case. ###


title: Two Men Arrested After Another Pleads Guilty in $470,000 Kickback Scheme Involvintg Jersey City Condo Complex

body_text: NEWARK, N.J. – Two New Jersey men were charged, and another previously pleaded guilty, for participating in a kickback scheme to defraud the owner of a condominium complex in Jersey City of $470,000, U.S. Attorney Philip R. Sellinger announced today. Ranaldo Bennett, 40, of Jersey City, and Jonathan Smith, 56, of Montclair, New Jersey, were each charged in a three-count complaint with conspiracy to commit wire fraud and money laundering. Smith was arrested earlier today and will have his initial appearance this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court. Bennett was arrested earlier in the week and had his initial appearance before Judge Kiel on Aug. 7, 2023. Nathaniel Obedos, 56, of Jersey City, pleaded guilty on July 6, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with conspiracy to commit wire fraud. According to the publicly filed documents and statements made in Court: From November 2018 through October 2020, Obedos conspired with Bennett and Smith to engage in a kickback scheme to defraud the owner of the condominium complex. Bennett was the complex’s lead property manager and Smith was its superintendent. Bennett and Smith steered repair and maintenance work to Obedos and his company in exchange for kickbacks from Obedos. Bennett and Smith falsified invoices that grossly inflated the value of Obedos’s work. Relying on those fake invoices, the complex paid Obedos the inflated prices, and Obedos then used the excess money to pay Bennett and Smith kickbacks. In total, the complex paid Obedos and his company over $1 million for work that was actually valued at $500,000. Obedos used the overpayments to pay $460,000 in kickbacks to Bennett and over $10,700 in kickbacks to Smith. The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years, and the money laundering charges each carry a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Obedos’ sentencing is scheduled for Nov. 9, 2023. U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the plea and arrests. The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit. The charges and allegations against Bennett and Smith are merely accusations, and they are presumed innocent unless and until proven guilty. obedos.information.pdf bennetsmith.complaint.pdf


title: Pharmacy Owner and Technician Both Sentenced to Prison for Health Care Fraud

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – James Craig Bell, 63, was sentenced today to 24 months for conspiracy to commit health care fraud in connection with a scheme through his pharmacy in Robeson County that had operated under the name Townsend’s Pharmacy. Mr. Bell previously pled guilty to the charge in October 2022. Mr. Bell’s codefendant and former employee, Melisha Oxendine West, 51, was sentenced last month following her guilty plea to 24 months imprisonment followed by 3 years of supervised release in connection with the same scheme. “People who steal taxpayer-funded programs intended to provide healthcare to the needy will be investigated and prosecuted,” said U.S. Attorney Michael Easley. “For over a decade, Bell and his pharmacy fraudulently billed Medicare and Medicaid over $4 million for medicine he never actually gave to patients. That money should have gone to getting vital medications to those in need.” Beginning as early as 2006 through July 2017, Bell, acting through Townsend’s Pharmacy, billed Medicare, Medicaid, and various private health plans for prescription drugs that were never actually dispensed by the pharmacy. Bell had trained West and other employees on how to bill health care benefit plans for drugs that were not authorized or dispensed. Bell also trained employees to falsely reauthorize a previously existing prescription from a licensed medical professional, and, how to falsely bill health care benefit programs as though a drug had been dispensed. West began independently running the pharmacy’s operations while Bell continued to knowingly profit from the fraudulent billing practices. This fraud scheme in total cost Medicare and North Carolina Medicaid over $4M in fraudulent billings by conservative estimates. "When providers submit false claims to Medicare and Medicaid, they take valuable, taxpayer-funded resources away from patients," said Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG is proud to work with our partners to hold accountable those who attempt to illegitimately profit off of federal health care programs." Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge Louise W. Flanagan announced the sentence. The United States Department of Health and Human Services Office of the Inspector General is investigating the case and Assistant U.S. Attorney David G. Beraka is prosecuting the cases. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Cases No. 7:22-cr-00107-FL and 7:21-cr-00129-FL.


title: Louisville Felon Sentenced to Nearly 4 Years in Federal Prison for Illegally Possessing a Machine Gun

body_text: Louisville, KY – A Louisville man was sentenced to nearly 4 years in prison yesterday for possession of a firearm by a convicted felon and illegal possession of a machine gun. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement. According to court documents, on February 13, 2023, Charles Divine, 27, possessed two Glock 9-millimeter pistols and a Glock switch, which is a device that allows a semi-automatic handgun to function as an automatic. A Glock switch is defined as a machine gun under federal law. Divine was prohibited from possessing a firearm because he had previously been convicted of the following felony offense. On June 30, 2020, in Oldham Circuit Court, Divine was convicted of wanton endangerment in the first degree. Yesterday, Divine was sentenced to 3 years and 10 months in prison followed by 3 years of supervised release. There is no parole in the federal system. This case was investigated by the ATF and LMPD. Assistant U.S. Attorney Frank Dahl prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. ###


title: Texas Man Who Supplied Virginia Drug Network Sentenced to 25 Years

component: USAO - Virginia, Western

body_text: ABINGDON, Va. – A Texas man, who a jury convicted in April of trafficking large quantities of high-purity methamphetamine from Mexico into Southwest Virginia, was sentenced today to 25 years in federal prison. Alonso Cantu-Cantu, 46, of Houston, was the major source of supply for a drug conspiracy that distributed more than 33 kilograms of crystal methamphetamine and 6 kilograms of cocaine into Southwest and Central Virginia through a multi-jurisdictional drug trafficking organization. In April, a jury convicted Cantu-Cantu of conspiracy to distribute and possession with the intent to distribute methamphetamine. Evidence presented at trial showed that Cantu-Cantu received methamphetamine in 55-gallon drums that had been transported into the United States in water tankers directly from sources in Mexico. Cantu-Cantu then directed the drugs through distributors from Indiana, who ultimately distributed down the supply chain throughout the Western District of Virginia, from Harrisonburg to Bristol, Virginia. Many of these transactions were orchestrated through another major drug trafficker who was incarcerated in multiple Virginia prisons throughout the conspiracy. In all, the estimated street value of the methamphetamine and cocaine distributed during the course of the conspiracy was more than $1.4 million. Over 33 kilograms of methamphetamine, 125.4 grams of heroin, 94 grams of cocaine, and 7 firearms were seized, and 26 defendants have now been convicted over the course of the six-year investigation, which started with the investigation of street level dealers in the Smyth County, Virginia, area. United States Attorney Christopher R. Kavanaugh, Virginia Attorney General Jason Miyares, and Special Agent in Charge Jared Forget of the DEA’s Washington Division made the announcement today. This investigation was led by the Drug Enforcement Administration-Washington Field Division’s Bristol Post of Duty with assistance from the Smyth County Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, the Washington County Virginia Sheriff’s Office, the Abingdon, Virginia Police Department, the Rockingham County Virginia RUSH Drug Task Force, the Rockingham County, Virginia Sheriff’s Office, the Harrisonburg, Virginia Police Department, the Bessemer, Alabama Police Department, the Virginia Department of Corrections, the Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Lena L. Busscher prosecuted the case for the United States.


title: Princeton Man Sentenced to 10 Years in Federal Prison for Methamphetamine Distribution

body_text: Paducah, KY – A Princeton, Kentucky man was sentenced yesterday to 10 years in prison for methamphetamine distribution offenses. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement. According to court documents, on separate dates in March, June, and August of 2021, in Caldwell County, Kentucky, Donald Ray Adams, 49, distributed 50 grams or more of methamphetamine. Further, on September 23, 2021, Adams possessed with the intent to distribute over 400 grams of methamphetamine. Adams was sentenced yesterday to 10 years in prison followed by a 5-year term of supervised release. There is no parole in the federal system. This case was investigated by the DEA Paducah post of duty and the Kentucky State Police, with assistance from the Caldwell County Sheriff’s Office and the Pennyrile Narcotics Task Force. Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case. ###


title: Rhode Island Man Sentenced to Three Years in Prison for Theft and Misuse of COVID-19 Pandemic Assistance

component: USAO - Massachusetts

body_text: BOSTON – A Rhode Island man was sentenced today in federal court in Boston for his involvement in a fraudulent scheme to obtain and misuse COVID-19-related unemployment assistance. Dquintz Alexander, 36, was sentenced by U.S. District Court Judge Angel Kelley to three years in prison and three years of supervised release. Alexander was also ordered to pay forfeiture of $318,281. In April 2023, Alexander pleaded guilty to one count of wire fraud conspiracy, five counts of wire fraud, and one count of aggravated identity theft. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors or gig economy workers). From April to June 2020, Alexander conspired with his co-worker, Norman Higgs, to submit fraudulent PUA claims using stolen identifying information of other individuals. The PUA payments were directed into bank accounts controlled by Alexander and Higgs. In total, accounts controlled by Alexander and Higgs received over half a million dollars in fraudulent PUA payments. While the majority of the funds were frozen by banks or recovered through the efforts of law enforcement, Alexander and Higgs were able to use over $200,000 of the funds for their personal benefit, including to pay off credit card debt and to fund digital currency and online retail brokerage accounts. On August 2, 2023 , Higgs was sentenced for his role in the scheme. Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud made the announcement. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit prosecuted the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Thomson, Illinois Man Sentenced to 270 Months in Prison Related to Conspiracy to Distribute Meth

component: Drug Enforcement Administration (DEA)

body_text: DAVENPORT, Iowa – A Thomson, Illinois man was sentenced on August 8, 2023 to more than 22 years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine or 500 grams and more of a mixture and substance containing methamphetamine. According to public court documents, Clifford Don Smith, 56, was identified by law enforcement as a distributor for large quantities of methamphetamine in and around the Clinton, Iowa area since 2021. In total, Smith was held responsible for 8.99 kilograms of ice methamphetamine. After completing his term of imprisonment, Smith will be required to serve five years of supervised release. There is no parole in the federal system. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the U.S. Drug Enforcement Administration, the Iowa Division of Narcotics Enforcement, and the Clinton Police Department.


title: Former U.S. Postal Service Employee Convicted of Mail Theft & Sentenced to Four Years of Probation

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Joshua P. Copas, 38, Cumberland, Wisconsin, pleaded guilty today to one count of theft of mail while a U.S. Postal Service employee and was sentenced to four years of probation by Chief U.S. District Judge James D. Peterson on that count. In early June 2022, a woman living in Cumberland contacted her local police department to report a stolen Menards rebate check. When she did not receive the check in the mail as expected, she called Menards and learned that the check had been spent without her knowledge. Footage of the transaction showed the check was used by Copas, who was working as a U.S. Postal Service mail carrier at the time. Further investigation linked Copas to thefts of 30 other Menards rebate checks, all but two of which were to be delivered on his mail route from late March to late May 2022. The collective dollar amount associated with the 31 stolen rebate checks was $4,547.84. During the sentencing hearing, Judge Peterson noted that the harm caused by Copas’ crime is two-fold. He first acknowledged the financial harm caused to the victims in this case, particularly those who lost hundreds of dollars in rebates. He then emphasized the general harm caused to the Postal Service itself. Copas was given a position of trust with the Postal Service and violated that trust. His theft degraded the confidence that the public places in the Postal Service to steadfastly deliver the mail. Given the severity of the crime, Judge Peterson imposed four years of probation and ordered Copas to pay the full $4,547.84 in restitution to the victims. The charge against Copas was the result of an investigation conducted by the U.S. Postal Service Office of Inspector General, Cumberland Police Department, and Rice Lake Police Department. Assistant U.S. Attorney Anita Marie Boor prosecuted this case.


title: New Orleans Man Pleads Guilty to Violations of the Federal Controlled Substances Act and Interstate Travel in Aid of Racketeering

body_text: NEW ORLEANS, LOUISIANA – CHARLES WADE , age 42, a resident from New Orleans, pled guilty on August 9, 2023 before United States District Court Judge Jane Triche Milazzo to a two-count superseding bill of information charging him in count one with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride, one kilogram or more of heroin, and 400 grams or more of fentanyl and in count two with interstate travel in aid of racketeering, announced U.S. Attorney Duane A. Evans. During the investigation, law enforcement, led by the Drug Enforcement Administration, seized over forty (40) kilograms of cocaine hydrochloride, six (6) kilograms of fentanyl, four and a half (4.5) kilograms of heroin, and over four hundred thousand ($400,000.00) in bulk cash. According to court documents, WADE and other co-conspirators are responsible for the distribution of multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana. For count one, WADE faces a mandatory minimum term of imprisonment of 10 years up to a maximum term of life, a fine of up to $10,000,000.00, at least five years of supervised release following any term of imprisonment, and a mandatory special assessment fee of $100. For count two, WADE faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, up to three years of supervised release following any term of imprisonment, and a mandatory special assessment fee of $100. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and assisted by the Federal Bureau of Investigation, United States Border Patrol, Gretna Major Crimes Task Force, Kenner Police Department, Jefferson Parish Sheriff’s Office, St. John’s Parish Sheriff’s Office, New Orleans Sheriff’s Office, and New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.


title: PUTNAM COUNTY MAN CHARGED WITH POSSESSION OF DESTRUCTIVE DEVICES AND A FIREARM WITH AN OBLITERATED SERIAL NUMBER

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

body_text: NASHVILLE, Tenn. – August 10, 2023 – Levi Austin Flatt, 31, of Baxter, Tennessee, was charged yesterday by federal criminal complaint with three counts related to possession of a destructive device and one count related to possession of a firearm with an obliterated serial number announced United States Attorney Henry C. Leventis. The criminal complaint alleges that on August 7, 2023, officers with the Putnam County Sheriff’s Office (“PCSO”) observed a video on the Flatt’s Facebook account that depicted him holding a plastic bottle, a wine bottle, and a galvanized pipe with an endcap affixed to the end. The three items were taped together with what appears to be yellow tape. Black and white braided electrical wires hung from the device. In the video, Flatt stated: “Hey ATF, let me know if this is legal, a pound of Tannerite, a pipe bomb, and a wine bottle full of diesel…oh is that legal ATF… just let me know about this…somebody let me know.” Later that same day, PCSO officers pulled over Flatt while he was driving less than a mile from the Putnam County Fair. Flatt exited his van with an empty holster on his right side and a fixed blade knife on his lower back. Officers searched the van and found, among other things, a fully loaded 9 mm pistol with an obliterated serial number; seven extended magazines containing 145 rounds of 9 mm ammunition; three additional suspected bombs, one of which contained metal shrapnel inside; several additional metal pipes with one end of each pipe welded closed; two Molotov cocktails; and, a receipt for a propane tank. This case is being investigated by the ATF, FBI, Tennessee Highway Patrol – Special Operations Unit, and the Putnam County Sheriff’s Office. Assistant U.S. Attorney Kathryn Risinger is prosecuting the case. A complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. # # # # #


title: Lame Deer woman admits trafficking methamphetamine

body_text: BILLINGS — A Lame Deer woman accused of selling methamphetamine on the Northern Cheyenne Indian Reservation admitted to a trafficking crime today, U.S. Attorney Jesse Laslovich said. Adrienne Dawn Laforge, 34, pleaded guilty to possession with intent to distribute meth. Laforge faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Dec. 8. Laforge was detained pending further proceedings. In court documents, the government alleged that in August 2022, law enforcement purchased meth from Laforge at a house in Lame Deer. An indictment accused Laforge with trafficking meth from about January through October 2022 on the Northern Cheyenne and Crow Indian reservations. Laforge and others were charged as a result of an investigation into a large drug trafficking conspiracy. Assistant U.S. Attorneys are prosecuting the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. XXX


title: New Orleans Man Pleads Guilty to Firearms Offenses

body_text: NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on August 8, 2023, DAVID COULTER , age 34, of New Orleans, pleaded guilty as charged on August 8, 2023 to Count 2 of his indictment for being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). According to court documents, COULTER has a prior conviction for possessing cocaine and multiple convictions for being a felon in possession of a firearm or weapon in Orleans Parish. Due to this criminal history, he is prohibited from having a firearm. He is now charged with possessing a Glock Model 34, nine-millimeter semi-automatic handgun on January 16 and January 18, 2022. As it relates to Count 2, the maximum penalty includes a term of imprisonment of up to 10 years, a fine of up to $250,000, up to three years of supervised release, as well as a mandatory special assessment fee of $100.00. He will be sentenced on November 28, 2023. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. This matter is being prosecuted by Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit.


title: Tsayatoh Man Pleads Guilty to Federal Firearms Violation

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Rumaldo Peshlakai pled guilty to being a felon in possession of firearms and ammunition. Peshlakai, 43, of Tsayatoh, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled. According to court documents, on Sept. 23, 2021, Peshlakai and Jane Doe were involved in a domestic dispute at a residence in Tsayatoh. Afterward, Peshlakai left the residence in Doe’s vehicle with their four children and multiple firearms and ammunition, driving into a wooded area near the residence. Peshlakai stated if any officers tried to stop him, he would shoot. An Amber Alert was issued for the four children in New Mexico and Arizona. Officers from the Navajo Police Department and the Federal Bureau of Investigation located the vehicle in the wooded area and identified footprints leading away from the vehicle. Inside the vehicle was an empty box of ammunition and a single round. Officers tracked the footprints for six miles to an abandoned housing area where it appeared another vehicle arrived and picked up Peshlakai and the four children. That evening, Peshlakai contacted NPD Dispatch and informed them the children were at a relative’s house. Peshlakai was not at the relative’s house and would not give his location but agreed to turn himself in to the FBI the next morning. The children, who were unharmed, were recovered by law enforcement, and Peshlakai was arrested on Sept. 24. Law enforcement later traced Peshlakai’s steps over the six-mile walk and unearthed a gun case that Peshlakai had buried while evading police. It contained a rifle, two pistols, and ammunition. Additional investigation revealed that Peshlakai abandoned the vehicle and took the case, then buried and concealed the case while being pursued by law enforcement. In a later interview, he claimed not to know the location of any firearms and denied possessing them at all. Peshlakai was previously convicted in 2001 of assault by striking, beating or wounding and assault resulting in serious bodily injury, and in 2006 for being a felon in possession of ammunition. As a previously convicted felon, Peshlakai cannot legally possess firearms or ammunition. At sentencing, Peshlakai faces up to 10 years in prison. The Gallup Resident Agency of the FBI Albuquerque Field Office and the Navajo Police Department investigated this case with assistance from the FBI Phoenix Field Office, United States Marshals Service, New Mexico State Police, Navajo Police Department, McKinley County Sheriff's Office and Bernalillo County Sheriff's Office. Assistant U.S. Attorneys Alexander F. Flores and Kimberly Bell are prosecuting the case. # # # 23-178


title: Huntington Man Sentenced to 230 Months in Prison

component: USAO - Indiana, Northern

body_text: FORT WAYNE –Stephen Pax, 54 years old, of Huntington, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to distribution of material involving the sexual exploitation of minors, announced United States Attorney Clifford D. Johnson. Pax was sentenced to 212 months in prison followed by 10 years of supervised release. The Court also revoked Pax’s supervised release on his prior conviction for distribution of child sexual abuse material and sentenced him to an additional 18 months in prison. The Court ordered these sentences to be served consecutively for a total term of 230 months in prison. According to documents in the case, from about February 2020, through February 2021, Pax knowingly distributed child sexual abuse materials using a means of interstate commerce. This case was investigated by the United States Secret Service with the assistance of the Indiana State Police. The case was prosecuted by Assistant United States Attorney Lesley Miller Lowery. The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . ###


title: FFL Owner Sentenced to Prison for Illegally Providing a Firearm to Essa Williams, Alleged Shooter of Phoenix Police Department Officer Tyler Moldovan

component: USAO - Arizona

body_text: PHOENIX, Ariz. – Dwayne Keith Anderson, 51, of Phoenix, Arizona, was sentenced by United States District Judge Steven P. Logan on Monday to six months in prison, followed by three years of supervised release. Anderson pleaded guilty on May 24, 2023, to False Statement During the Purchase of a Firearm, Aid and Abet. Anderson was a Federal Firearms Licensee (FFL), doing business as 602 Firearms Instruction L.L.C. in Phoenix, Arizona. Anderson met Essa Williams at a gun show, where he told Williams he could assist him with firearm sales by helping him avoid a background check. Williams had several felony convictions, had previously been sentenced to the Arizona Department of Corrections, and therefore could not legally possess a firearm. On December 13, 2021, Williams texted Anderson about purchasing a firearm and sent false information for a female, including a photo of her driver’s license. Anderson filled out the Firearms Transaction Record with the false information and signature of the female. Although Anderson knew that the purchaser of the firearm must fill out the Firearms Transaction Record, Anderson completed the form with the false information. Anderson sold Williams a Masterpiece Arms Defender 9mm pistol, using the false information provided by Williams. Anderson had never met the female, and only saw Williams again when he arrived at Anderson’s house that night to pick up the firearm. Williams is pending trial in Maricopa County Superior Court for allegedly shooting Phoenix Police Department (PPD) Officer Tyler Moldovan on December 14, 2021. The Masterpiece Arms Defender 9mm pistol was not the firearm that was used to shoot Officer Moldovan. Pursuant to a search warrant, PPD detectives searched Williams’ black Dodge Charger after the shooting of Officer Moldovan, locating the Masterpiece Arms Defender 9mm pistol on the back seat floorboard. “Federal firearms laws and regulations make America safer,” said United States Attorney Gary Restaino. “These laws are designed to make it harder for the drivers of violence in our communities to obtain guns. An FFL like Mr. Anderson who sells a firearm to a felon betrays the public trust and places his fellow citizens at risk.” “Federal Firearms Licensees are held to a high standard and when they do not abide by these laws, it does a disservice to the community and to other law-abiding Federal Firearms Licensees,” said Brendan Iber, ATF Special Agent in Charge. “ATF will aggressively pursue anyone that thwarts these federal firearms laws and regulations. It is unacceptable for FFLs, or anyone, to provide firearms to felons.” This case was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution. CASE NUMBER: CR-22-00277-PHX-SPL RELEASE NUMBER: 2023-123_Anderson # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: Wood County Man Sentenced for Unlawfully Obtaining Unemployment and COVID-19 Benefits

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Daniel Satow, 33, of Davisville, was sentenced today to five years of federal probation and ordered to pay $21,238 in restitution for unlawfully obtaining unemployment benefits, including supplementary funds provided by the Federal Pandemic Unemployment Compensation Program (FPUC) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to court documents and statements made in court, on December 20, 2020, Satow logged on to the WorkForce West Virginia website and applied for unemployment compensation. Satow admitted he was employed at the time and that he falsely claimed when he applied that he had not been gainfully employed since September 9, 2020, and that the coronavirus pandemic prevented him from working. Satow’s fraudulent application was approved and he received a debit card loaded with unemployment compensation benefits through the mail at his Davisville residence on January 5, 2021. Satow admitted that he used the debit card to make purchases for himself while knowing he had obtained the benefits fraudulently. Satow further admitted that he continued to access the WorkForce West Virginia website for 26 consecutive weeks and each time falsely certified that he remained entitled to unemployment compensation benefits. WorkForce West Virginia relied on Satow’s false answers and loaded additional benefits onto the debit card weekly. These benefits included supplementary funds provided by the FPUC program. Satow admitted that he continued to use the debit card to make personal purchases. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided for a temporary emergency increase in unemployment compensation benefits, referred to as the Federal Pandemic Unemployment Compensation Program (FPUC). Although these benefits are administered by the states, they are funded in part by the federal government. United States Attorney Will Thompson made the announcement and commended the investigative work of the WorkForce West Virginia Integrity Section and the Litigation Financial Analyst with the U.S. Attorney’s Office. Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Ryan Blackwell prosecuted the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-56. ###


title: U.S. Forest Service Wins Civil Case Supporting Forest Restoration Projects in the Fremont-Winema National Forest

component: USAO - Oregon

body_text: MEDFORD, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that an order granting summary judgment in favor of the U.S. Forest Service was entered in a civil case challenging the agency’s commercial thinning of timber conducted as part of forest restoration efforts in the Fremont-Winema National Forest. In December 2021 and May 2022, after an environmental effects review and public outreach, the Forest Service approved three restoration projects covering more than 91,000 acres in the Fremont-Winema National Forest designed to reduce the risk of severe wildfire in dry forestlands and improve degraded forest health and habitats. To achieve the agency’s restoration goals, it proposed various activities in the three projects including, but not limited to, small tree thinning, prescribed burning, juniper cutting, meadow enhancement, stream restoration, and the commercial sale of select forest products. As part of each of the three restoration projects, the Forest Service approved between 3,000 and 16,000 acres of commercial thinning. Commercial and non-commercial thinning are longstanding timber management tools the Forest Service uses to improve timber stand growth and reduce fire hazard through the removal of select trees in overly dense and deteriorated stands. The Fremont-Winema National Forest has recently suffered from major wildfires including the 400,000-acre Bootleg Fire in 2021. On July 12, 2022, Oregon Wild and WildEarth Guardians, two non-profit corporations, brought suit challenging the Forest Service’s use of commercial thinning as part of the restoration projects, alleging violations of the Administrative Procedure Act (APA) and the National Environmental Policy Act (NEPA). On August 4, 2023, U.S. District Court Judge Michael J. McShane issued a summary judgment order concluding that the Forest Service had not in fact violated APA or NEPA. The court found the Forest Service’s use of NEPA procedures to approve the projects was lawful and reasonably determined. The U.S. Forest Service was represented in this matter by Sean E. Martin, Assistant United States Attorney for the District of Oregon.


title: Minneapolis Felon Sentenced to 15.5 Years in Prison for Illegal Possession of a Firearm

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Minneapolis man has been sentenced to 186 months in prison followed by three years of supervised release for illegal possession of a firearm after engaging in a shootout in north Minneapolis, announced United States Attorney Andrew M. Luger. According to court documents, on December 20, 2021, Dominique Marquise McCaskel, 26, was in possession of a loaded Sig Sauer, model P365, 9mm semiautomatic pistol. According to the defendant’s plea agreement and other court documents, surveillance footage from a nearby business showed a vehicle drive slowly past McCaskel, stopping momentarily in an alleyway several feet ahead of McCaskel. Upon seeing the vehicle, McCaskel pulled his Sig Sauer firearm from his pocket, ran towards the vehicle as it was pulling away, and exchanged gunfire with individuals in the vehicle. McCaskel was shot, suffering two non-life-threatening gunshot wounds, and fell to the sidewalk, while the vehicle fled the area. Officers with the Minneapolis Police Department responded to the scene and recovered two 9mm discharged cartridge casings near McCaskel on the ground, and later recovered McCaskel’s firearm. Police also found that McCaskel had several suspected fentanyl pills and cash on his person. The Minneapolis Police Forensics Division determined that the two recovered discharged cartridge casings were shot from McCaskel’s Sig Sauer firearm. The Forensics Division also found McCaskel’s thumbprint on the loaded magazine that was inserted into the firearm. Because McCaskel has several prior felony convictions, including crimes of violence, he is prohibited from lawfully possessing any firearms or ammunition. McCaskel pleaded guilty on March 14, 2023, to one count of possession of a firearm as an armed career criminal felon. McCaskel was sentenced yesterday in U.S. District Court before Senior Judge Ann D. Montgomery. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department. Assistant U.S. Attorneys Benjamin Bejar and Hillary A. Taylor prosecuted the case.


title: Warwick, ND, Man Charged with Sexual Abuse and Materials Involving Sexual Exploitation

component: USAO - North Dakota

body_text: FARGO - United States Attorney Mac Schneider announced that a federal grand jury has indicted Jordain Jaden Smith, aka Jordain Thompson, age 23 of Warwick, ND, for Aggravated Sexual Abuse by Force, Sexual Abuse of an Incapacitated Victim, Possession of Materials Involving the Sexual Exploitation of Minors, and Sexual Abuse of a Minor. Smith appeared for an initial appearance and arraignment today. Smith is charged with five counts alleging Smith sexually abused two minor females and possessed materials involving the sexual exploitation of one of the minors. The sexual abuse alleged in the Indictment occurred within the boundaries of the Spirit Lake Reservation. If convicted, the two highest charges carry a maximum sentence of life in prison. Smith has entered not guilty plea to matters alleged in the Indictment and an initial trial date has been scheduled for October 3, 2023. Grand jury indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial. This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), helps federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . This case is being investigated by Federal Bureau of Investigation with assistance from: Bureau of Indian Affairs North Dakota Bureau of Criminal Investigation, Grand Forks Police Department, Internet Crimes Against Children Task Force and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Lori H. Conroy assigned to the case. # # #


title: Jamestown Man Pleads Guilty To Selling Heroin And Fentanyl Which Resulted In Two Deaths

component: USAO - New York, Western

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Steven Mojica Medina, 35, of Jamestown, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute, and distribution of, heroin, fentanyl, and acetyl fentanyl, and being a felon in possession of a firearm and ammunition. The charges carry a maximum penalty of 50 years in prison and a $1,000,000 fine. Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on August 30, 2018, an individual identified as J.H., fatally overdosed after ingesting a substance containing fentanyl, and acetyl fentanyl. Medina provided J.H. with the fentanyl and fentanyl analogue mixture shortly before J.H. died. Approximately a week later, on September 9, 2018, an individual identified as J.T. fatally overdosed after ingesting a substance containing heroin, fentanyl, and acetyl fentanyl. Medina provided the substance to a third party who then provided it to J.T. On December 1 and 2, 2020, the Jamestown Police Department conducted controlled purchases of heroin and fentanyl from Medina. Subsequently, a search warrant was executed at Medina’s Euclid Avenue residence during which investigators recovered two loaded firearms, a drug ledger, 48 bags of fentanyl weighing 1.76 grams, and cocaine. On November 1, 2021, Medina was pulled over in his vehicle by the Jamestown Police Department. Officers recovered a 9mm semi-automatic pistol, six magazines and approximately 167 rounds of 9mm ammunition. Medina also had 24 wrapped baggies of crack cocaine weighing 3.8 grams. In July 2015, Medina was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm. The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division. Sentencing is scheduled for December 11, 2023, before Judge Arcara. # # # #


title: Jury Convicts Ex-FBI Agent of Secret Probation Scheme

component: Office of the Inspector General

body_text: A retired FBI agent who convinced a Granbury woman she was on “secret probation” and conned her out of more than $700,000 was convicted at trial of eight federal crimes, U.S. Attorney for the Northern District of Texas Leigha Simonton announced today. His coconspirator who also carried out the “secret probation” scheme was convicted as well. William Roy Stone, Jr., 64, was indicted in May 2021. After 12 days of trial and just 4 hours of deliberation, a jury convicted him of one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of engaging in monetary transactions in property derived from unlawful activity, and one count of false impersonation of a federal officer. Coconspirator Joseph Eventino DeLeon, 64, was indicted in December 2021. The jury convicted him of conspiracy to commit wire fraud. “Mr. Stone used his imposing status as a former FBI special agent to manipulate, intimidate, and steal from his victim,” said U.S. Attorney Leigha Simonton. “Federal agents should be pillars of integrity. When they fail to meet that standard, we will not hesitate to hold them accountable to the fullest extent of the law.” According to evidence presented at trial, Mr. Stone convinced his victim, C.T., that she was under “secret probation” for federal drug crimes in “Judge Anderson’s court in Austin, Texas.” He and Mr. DeLeon told the victim that the fictious federal judge had appointed the two of them to administer the conditions of her six year “secret probation”. They required her to text them written reports of her daily activities, and to compensate them for their supervisory services, as well as any expenses they incurred. Copies of the multiple six figure checks she wrote them were admitted into evidence at trial. Over the course of eleven months, C.T. gave Mr. Stone more than $700,000 and Mr. DeLeon more than $50,000. Mr. Stone and Mr. DeLeon insisted that C.T. was prohibited from disclosing her probation status to anyone, and would risk imprisonment and loss of her children if she did not comply with the terms of her probation. In recorded phone calls introduced into evidence at trial, when C.T. began to question the situation, Mr. Stone assured her everything he’d done was “legit.” C.T.: What I’m saying is, all of that stuff was to compensate you for all the stuff that you did for me, you know. STONE: Okay, then. Okay. We don’t need to discuss that anymore. It’s over. It’s done. C.T.: Well, I’m just trying to let you know that I feel like that’s a huge order. I mean, I feel like I could have got, like, the best attorney in, like, the world for $100,000. STONE: Well, you know what, we can’t change the past, now can we? … C.T.: I’m not stupid, Bill. I may have been, you know, blinded because I thought that somebody in your position wouldn’t ever do what you did to me. STONE: I never did anything. C.T.: You took advantage of me based upon who you were in society. C.T.: I even looked up Judge Anderson in Austin and the Anderson that pulls up... There’s not one, Bill. There is not one. There is not a Judge Anderson in Austin. STONE: Bye. In order to further convince her the probation was real, the defendants monitored her cell phone communications, conducted physical surveillance of her, stated they had discussed C.T.’s probation with a psychiatrist, enlisted another person to impersonate the U.S. Drug Enforcement Administration “Intelligence Center” in a message inquiring about C.T., and even placed spoof calls between Mr. Stone, C.T., and the fictitious Judge Anderson. They urged her to distance herself from her family, claiming her family members wanted to take her inheritance away from her, and persuaded her to transfer her inherited assets out of a trust and into an account under her own name. At one point, they allegedly claimed Judge Anderson would discharge C.T.’s probation if C.T. agreed to marry Mr. Stone. Mr. DeLeon even carried a weapon in C.T.’s home while purportedly providing “protective services” for her. Mr. Stone now faces up to 158 total years in federal prison. Mr. DeLeon faces up to 20 years in prison. The Texas Rangers and the U.S. Department of Justice Office of Inspector General conducted the investigation. Mr. Stone retired from the Federal Bureau of Investigation in October 2015. The Bureau provided valuable assistance during the trial. Assistant U.S. Attorneys Jenna Rudoff, Donna Strittmatter Max, and Marcus Busch are prosecuting the case with the support of Executive Assistant U.S. Attorney Katherine Miller and Appellate Assistant U.S. Attorney Lindsey Pryor; Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture. U.S. District Judge Ada Brown presided over trial.


title: Tech Executive Admits Participating in $150 Million Fraud on Qualcomm

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – August 10, 2023 SAN DIEGO – Sanjiv Taneja, the former CEO of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today for his role in a massive fraud. Taneja of Cupertino, California, pleaded guilty to one count of money laundering related to a $1.5 million transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Taneja admitted that he and co-defendants Karim Arabi, Ali Akbar Shokouhi, and others schemed to hide Arabi’s involvement in Abreezio—the tech firm that they marketed to Qualcomm. Arabi was a Qualcomm employee throughout the entire marketing period, and hiding his involvement in the firm and the development of its patented technology allowed Abreezio’s principals to claim that the company was an “angel-funded” outside firm while disguising its true connections to Qualcomm. In that regard, Taneja admitted that he asked Arabi for performance numbers for Qualcomm’s existing technology to try to improve Abreezio’s marketing pitch, and that he even called Arabi by a different name in text messages to obscure Arabi’s involvement in Abreezio. According to court documents, Qualcomm agreed to pay roughly $180 million for Abreezio—$150 million of which was paid in cash in October 2015. Taneja acknowledged that he never actually met the purported creator of Abreezio’s core technologies, who is Arabi’s family member and was never involved in the company’s technical or strategic decision-making as far as Taneja knew. In his plea agreement, Taneja also admitted that Karim Arabi directed him to delete emails concerning the scheme once Qualcomm started investigating the Abreezio transaction, although Taneja was later able to recover the emails. “Fraud and deceit undermine legitimate businesses and the marketplace, whether they victimize small businesses or multinational corporations and their shareholders,” said Acting U.S. Attorney Andrew R. Haden. “This office will seek justice against wrongdoers, big and small alike.” “Crimes like the one supported by Mr. Taneja and his co-conspirators threaten the economy at every level,” said FBI San Diego Field Office Acting Special Agent in Charge Jamie Arnold. “The FBI is committed to working with its law enforcement partners to ensure that every criminal taking part in corporate fraud is investigated and arrested.” “Mr. Taneja was part of an elaborate conspiracy to steal tens of millions of dollars from a major technology company and a complex scheme to launder the proceeds,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation Los Angeles field office. “IRS Criminal Investigation special agents are experts at following the money through complex transactions and international movements, and we are committed to continued collaboration with our law enforcement partners to identify and bring to justice those who attempt to defraud people, businesses or both.” DEFENDANTS Case Number 22-CR-1152-BAS Karim Arabi Age: 57 San Diego, CA Sanjiv Taneja Age: 60 Cupertino, CA Ali Akbar Shokouhi Age: 64 San Diego, CA AGENCIES Federal Bureau of Investigation Internal Revenue Services, Criminal Investigation United States Marshals Service *The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.


title: Ringleader sent to prison in nationwide fraud scheme targeting elderly victims

component: USAO - Texas, Southern

body_text: HOUSTON – The leader in a conspiracy to commit mail fraud has been ordered to federal prison, announced U.S. Attorney Alamdar S. Hamdani. MD Azad, 26, an Indian national who illegally resided in Houston, pleaded guilty Aug. 15, 2022, admitting he participated in a fraud ring from 2019-2020 which operated out of various cities including Houston. U.S. District Judge Kenneth Hoyt has now ordered Azad to serve 188 months in federal prison. Azad, a citizen of India, is expected to face removal proceedings following the prison term. At the hearing, the court heard additional evidence that described Azad as the U.S.-based ringleader working with a call center in India. In handing down the sentence, the court noted the many letters and victim impact statements it had read showing the financial devastation to elderly and vulnerable victims throughout the United States because of this fraud scheme. “The victims in this case were devastated, financially and otherwise,” said Hamdani. “This fraud ring repeatedly preyed on elderly and vulnerable people in the United States who spoke of threats of bodily harm if they did not comply with demands for more money. Our hope, and that of many of the victims, is deterrence so as to stop others who would think of doing similar harm in our community and beyond.” The scheme targeted elderly victims throughout the United States and elsewhere. The ring tricked and deceived victims using various ruses and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters or by mailing cash to alias names via FedEx or UPS. Part of the scheme involved fraudsters contacting victims by phone or via internet sites for computer technical support and directing victims to a particular phone number. Once victims contacted the fraudsters, they were told various stories such as they were communicating with an expert that needed remote access to their computer in order to provide technical support services. The fraudsters then gained access to victims’ personal data and bank and credit card information. Victims typically paid a fee to conspirators for the fake technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error. Victims were then instructed to reimburse the ring by various means. Victims were sometimes re-victimized multiple times and threatened with bodily harm if they did not pay. Indian citizen Anirudha Kalkote, 26, also pleaded guilty in relation to the conspiracy as did Sumit Kumar Singh, 26, Himanshu Kumar, 26, and MD Hasib, 27, all also Indian nationals who illegally resided in Houston. They are pending sentencing. All five individuals will remain in custody. The FBI, U.S. Postal Inspection Service and IRS Criminal Investigation conducted the investigation with assistance from Homeland Security Investigations, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States including the Sheriff’s Office and Commonwealth’s Attorney’s Office of Augusta County, Virginia. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison prosecuted the case. The case is brought as a part of the Elder Justice Initiative. Its goal is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. In March 2020, the U.S. Department of Justice launched National Elder Fraud Hotline to help combat fraud against older Americans and provide services to victims. If you or someone you know is a victim of elder fraud, we encourage you to call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311). The hotline is open Monday through Friday from 10 a.m. to 6 p.m. eastern time. Services are available for speakers of English, Spanish and other languages.


title: Asylee sentenced for third smuggling conviction

body_text: McALLEN, Texas – A 41-year-old Honduran asylee residing in Houston has been sentenced for smuggling aliens for the third time, announced U.S. Attorney Alamdar S. Hamdani. Marlon Enrique Gallegos-Rapalo pleaded guilty May 23. Gallegos was previously convicted of smuggling aliens in 2015 and 2017. Gallegos had been granted withholding of removal under U.S. asylum laws, preventing immigration authorities from removing him. Chief U.S. District Judge Randy Crane has now sentenced him to 78 months in federal prison. At the hearing, the court heard how Gallegos had committed these offenses while under the protection of immigration laws. In handing down the sentence, the court noted that Gallegos had “committed a serious abuse of the system.” He is expected to face removal proceedings following his sentence. On July 19, 2022, law enforcement discovered a stash house in McAllen being used to hide 35 migrants illegally present in the United States. Further investigation revealed Gallegos was the lease holder on the house and that he was directing the co-defendant Jose Ever Hernandez-Escobar to provide food and clothes to the migrants. Authorities also found that Gallegos and Hernandez harbored over 200 migrants at this residence during the conspiracy. “Gallegos was given an incredible opportunity that some don’t have to make a new life in the United States,” said Hamdani. “Instead, he wasted that chance and continued to smuggle migrants, resulting in his third conviction and a lengthy prison term. We will not stop our fight against migrant smuggling, especially those who engage in such a large scale operation.” Gallegos-Rapalo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Hernandez-Escobar, 22, Honduras, also pleaded guilty and is set for sentencing Sept. 19. Border Patrol conducted the investigation with the assistance of the U.S. Marshals Service, Texas Department of Public Safety, Precinct 3 Hidalgo County Constables’ Office and the McAllen Police Department. Assistant U.S. Attorneys Jongwoo Chung and Theodore Parran III prosecuted the case as part of the Human Smuggling Prevention Program (HSPP). The primary goal of HSPP is to disrupt and dismantle human smuggling organizations on our Southwest Border through close cooperation with Homeland Security Investigations, Border Patrol, Customs and Border Protection-Office of Field Operations and local law enforcement partners.


title: Local man imprisoned for distributing meth out of car shop

body_text: HOUSTON – A 42-year old Houston man has been handed a significant sentence for his role in a counterfeit opiate conspiracy, announced U.S. Attorney Alamdar S. Hamdani. Jason Curtis Caldwell pleaded guilty Jan. 6 to conspiring to possess with intent to distribute fentanyl. Senior U.S. District Judge David Hittner has now sentenced him to a 210-month-term of imprisonment to be immediately followed by five-years of supervised release. Prior to handing down the sentence, Judge Hittner emphasized several times to Caldwell and his attorney that it only takes one fentanyl pill to kill. Caldwell was running a multi-drug distribution operation out of Caldwell’s car shop, North West Customz. He was known to carry a firearm during his operations and distributed kilogram amounts of meth as well as counterfeit opiate pills that contained fentanyl. “With approximately 500 fatal overdoses each year in Houston alone linked to fentanyl, we cannot overstate the danger it presents to our communities,” said Hamdani. “We will not stop fighting to protect the citizens of the Southern District of Texas. This case was a great example of that effort and demonstration of the collaboration between federal and local agencies in bringing a meth and fentanyl distributor to justice.” The investigation began after agents discovered Caldwell was supplying meth to another individual who was distributing counterfeit opiate pills. Those pills contained meth. Further law enforcement efforts revealed Caldwell sold counterfeit opiate pills on two difference occasions to two others. Those individuals have also been convicted. Previously released on bond, Caldwell was taken into custody following the sentencing where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Texas Department of Public Safety and Homeland Security Investigations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Drug Enforcement Administration, FBI, Houston Police Department and Harris County Constable’s Office Precinct 4. Assistant U.S. Attorney Jimmy Leo prosecuted the case. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage .


title: Otay Mesa Detention Facility Case Manager Accused of Having Sex with Detainee

body_text: NEWS RELEASE SUMMARY – August 10, 2023 SAN DIEGO – Shantal Hernandez is charged in a complaint unsealed today with having sexual relations with a detainee at the Otay Mesa Detention Facility while she was a case manager at the Office of the Immigration Detention Ombudsman (OIDO), which provides oversight of immigration detention facilities. OIDO is an independent office within the Department of Homeland Security. OIDO was established by Congress to assist individuals with complaints about the potential violation of immigration detention standards or other misconduct by Department of Homeland Security or contract personnel and provides oversight of immigration detention facilities. It is not a part of Immigration and Customs Enforcement or U.S. Customs and Border Protection. As part of her duties, Hernandez managed the complaints of ICE detainees in various detention facilities in the San Diego area. According to the complaint, agents with the Department of Homeland Security’s Immigration and Customs Enforcement, Office of Professional Responsibility (ICE OPR), received information that Hernandez had been spending an unusual amount of time with a detainee - identified in court documents by the initials I.K.N. - at the Otay Mesa facility. The complaint alleges that agents from ICE OPR obtained phone records from OMDC and determined that I.K.N. and Hernandez engaged in a significant number of sexually explicit phone calls and electronic communications. These calls discussed an ongoing relationship and sex acts between Hernandez and I.K.N. For example, in one call, Hernandez told I.K.N. that she had a video of one of their sex acts. Agents executed a search warrant that yielded a copy of one such video. “The alleged conduct cannot and will not be tolerated,” said Acting U.S. Attorney Andrew Haden. “Those in a position of authority over immigration detainees must be held to the highest standard.” “Hernandez’ main purpose as a DHS OIDO case manager was to promote safe and humane conditions within immigration detention,” said Jeffrey Gilgallon, special agent in charge for the Office of Professional Responsibility (OPR). “However, she allegedly abandoned that oversight role, instead using her position to engage in prohibited sexual activity with an ICE detainee in one of our detention facilities. OPR is fully committed to enforcing ICE’s zero tolerance policy against sexual abuse in our detention facilities and aggressively pursuing those DHS employees who violate the law, no matter their role or title.” Hernandez made her initial appearance in federal court this afternoon. She is scheduled to appear in court on August 15, 2023, at 10 a.m. for a detention hearing before U.S. Magistrate Judge Jill L. Burkhardt. DEFENDANTS Case Number 23mj 2882 Shantal Hernandez Age: 36 San Diego, CA SUMMARY OF CHARGES Sexual Abuse of a Ward – Title 18, U.S.C., Section 2243(b) Maximum penalty: Fifteen years in prison and $250,000 fine AGENCY U.S. Immigration and Customs Enforcement, Office of Professional Responsibility *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.


title: Mitchell Man Sentenced for Receipt and Distribution of Child Pornography

component: USAO - South Dakota

body_text: SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Mitchell, South Dakota, man/woman convicted of Receipt and Distribution of Child Pornography. The sentencing took place on August 7, 2023. Justin Douglas Brende, age 43, was sentenced to 15 years in federal prison, 15 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Brende was indicted by a federal grand jury in June of 2022. He pleaded guilty on May 16, 2023. The conviction stemmed from incidents between November 1, 2020 and October 3, 2021, when Brende knowingly received and distributed material which contained child pornography. Brende used his cellular phone to access the internet and subsequently searched for, received, and distributed child pornography. On some occasions, he used his PayPal account as a means to pay money to access digital files that contained images and videos of prepubescent children engaged in sexually explicit conduct. Some of the prepubescent minors had not attained the age of 12. This case was investigated by the DCI, the SD Internet Crimes Against Children, the National Center for Missing and Exploited Children, and the Mitchell Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . Brende was immediately remanded to the custody of the U.S. Marshals Service.


title: Colorado Man Sentenced for Possession with Intent to Distribute a Controlled Substance

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Lamar, Colorado, man convicted of Possession with Intent to Distribute a Controlled Substance. The sentencing took place on August 9, 2023. Jose Dominguez, age 39, was sentenced to 10 years in federal prison, three years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Dominguez was indicted by a federal grand jury in January of 2023. He pleaded guilty on May 22, 2023. On October 19, 2022, the Lyman County Sheriff’s Office received a driving complaint from concerned citizens traveling on the interstate. The citizens reported a dark grey Toyota Corolla was driving erratically and in speeds in excess of 100 mph. Law enforcement located the vehicle and initiated a traffic stop. Dominguez was identified as the driver A search of the vehicle produced a Ziplock bag containing 212 grams of pure methamphetamine and several baggies common to distribution. Methamphetamine is a Schedule II controlled substance. Dominguez admitted to officers he was transporting the drugs to an individual in Sioux Falls, South Dakota, where it would be distributed. This case was investigated by the FBI, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Lyman County Sheriff’s Office. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. Dominguez was immediately remanded to the custody of the U.S. Marshals Service.