title: Pawn Shop Owners Charged With Purchasing, Trafficking Millions of Dollars of Stolen Goods

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Larry Leonard, 60, and Nathaniel “Nat” Leonard, 68, both of Philadelphia, Pennsylvania, were charged by indictment with conspiracy to transport and sell stolen goods in interstate commerce and interstate transportation of stolen property. Larry Leonard was also charged with money laundering. The defendants, who are cousins, jointly ran three pawn shops: Society Hill Loan and K&A Money Loan Pawnbrokers (“K&A”), both in Philadelphia, and Lou’s Jewelry and Pawnshop (“Lou’s Jewelry”) in Wilmington, Delaware. Larry Leonard controlled the day-to-day operations of K&A and oversaw the day-to-day operations of Lou’s Jewelry, and Nat Leonard controlled the day-to-day operations of Society Hill Loan. The indictment alleges that the defendants were using their businesses to buy and sell large volumes of new, stolen, in-box merchandise supplied by two main groups of people. The first group, known colloquially as “boosters,” collectively stole millions of dollars of new retail merchandise from retailers in the Philadelphia and Delaware region, and elsewhere, including from The Home Depot, Lowe’s, Target, Walmart, Best Buy, CVS, Rite Aid, Safeway, and others, which the boosters then sold to the Leonards’ pawn shops for cash. The other group, referred to by the defendants as “mooks,” collectively stole millions of dollars of new retail merchandise from across the United States, which the “mooks” then resold in bulk quantities to the defendants and other pawn shop employees for cash on a recurring basis. The defendants are alleged to have transferred the stolen goods from Lou’s Jewelry in Delaware and K&A in the Kensington section of Philadelphia to Society Hill Loan in South Philadelphia, where the defendants listed the stolen merchandise for sale via the Society Hill Loan eBay site, which they controlled. From November 2019 through December 2023, the Leonards are alleged to have sold more than $19 million in stolen merchandise via their eBay site. The defendants are alleged to have shipped the stolen merchandise from Society Hill Loan in Philadelphia to customers across the country. Larry Leonard is also charged with three counts of money laundering for using the proceeds of the illegal sale of stolen merchandise to pay off more than $120,000 in credit card bills from December 2022 through April 2023. If convicted, Larry Leonard faces a maximum possible sentence of 45 years’ imprisonment and Nathaniel Leonard faces a maximum possible sentence of 15 years’ imprisonment. This case was investigated by Homeland Security Investigations, with assistance from the U.S. Postal Inspection Service, the IRS, Delaware State Police, and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys Matthew T. Newcomer and S. Chandler Harris. An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Maximiliano Davila-Perez, Former Head Of Bolivian Anti-Narcotics Agency, Extradited To The United States From Bolivia On Cocaine Importation And Firearms Charges

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today that MAXIMILIANO DAVILA-PEREZ, a/k/a “Macho,” was extradited from Bolivia and arrived in the U.S. this morning to face federal charges for conspiring to import cocaine into the U.S. and conspiring to use and possess machineguns in connection with this cocaine importation conspiracy. DAVILA-PEREZ will make his initial appearance in the Southern District of New York this afternoon before the Honorable Robyn F. Tarnofsky. DAVILA-PEREZ’s case is assigned to U.S. District Court Judge Denise L. Cote. U.S. Attorney Damian Williams said: “As alleged, Maximiliano Davila-Perez abused his position as the head of Bolivia’s anti-narcotics law enforcement agency to instead aid the very narcotics traffickers he was entrusted to investigate and arrest. Along the way, he sought to use Bolivian law enforcement officers to guard and transport cocaine shipments and participate in the shipment of massive quantities of cocaine. While this conduct is abhorrent, it is sadly not shocking; instead, this is the latest example of our work with the DEA’s Special Operations Division in rooting out this type of cocaine-fueled corruption around the globe. Let this be another loud message to those who would abuse their positions to send ton-quantities of cocaine to the United States: our reach is global, our memory is long, and we will not allow you to continue to flood our country with cocaine without punishment. I commend the work of the career prosecutors of this Office, who have investigated and prosecuted these cases alongside the Special Operations Division for years and will continue to do so for as long as remains necessary.” DEA Administrator Anne Milgram said: “Maximiliano Davila-Perez was supposed to fight the drug trade, but instead he fueled it. As the head of Bolivia's anti-narcotics agency, he turned law enforcement into a cocaine trafficking machine, seeking to flood our streets with poison. His betrayal of public trust ends here. Let this extradition serve as a warning: no corrupt official is untouchable, and the DEA will stop at nothing to bring criminals to justice, no matter where they hide.” According to the allegations contained in the Superseding Indictment , other court filings, and statements made during court proceedings: [1] Until in or about November 2019, DAVILA-PEREZ was the Director of Bolivia’s chief anti-narcotics law enforcement agency, Fuerza Especial de Lucha Contra el Narcotráfico (“FELCN”). In DAVILA-PEREZ’s role as Director of FELCN, he exploited his official position in furtherance of large-scale cocaine trafficking activities, including by seeking to divert resources away from investigating traffickers supported by DAVILA-PEREZ, and by providing heavily armed FELCN officers under his command as security for cocaine shipments. DAVILA-PEREZalso worked in partnership with large-scale cocaine suppliers who operated cocaine labs in Bolivia and agreed to ship more than a thousand kilograms of Bolivian cocaine to New York. In or around July 2019, while DAVILA-PEREZ was still the Director of FELCN, DAVILA-PEREZ and his co-conspirators were recorded while they discussed a plot to send over one ton of cocaine to the U.S. via airplane from Bolivia. During that meeting, DAVILA-PEREZ suggested using particular airfields in Bolivia at which he controlled airport security and could divert law enforcement resources to provide cover while the aircraft was loaded with ton-quantities of cocaine. DAVILA-PEREZ also committed to providing uniformed FELCN officers armed with machineguns to guard the plane during loading and before takeoff. DAVILA-PEREZ explained that he charged by-the-kilogram rates for the protection of the cocaine load. In November 2019, DAVILA-PEREZ was demoted from his post at FELCN but continued to use his political influence and law enforcement authority while he conspired to import ton-quantities of cocaine from Bolivia to the U.S. and provide armed paramilitary protection for those cocaine shipments. Indeed, between November 2019 and February 2020, during a series of recorded meetings and calls, DAVILA-PEREZ and his co-conspirators continued to arrange the anticipated cocaine shipment. During those meetings, DAVILA-PEREZ discussed the drug competition in the New York market; his continued promise to provide armed protection for the cocaine shipment; and the successful delivery of a 10-kilogram sample of cocaine in Lima, Peru, which was delivered on or about December 10, 2019, in anticipation of the larger cocaine shipment that DAVILA-PEREZ and his co-conspirators intended to import to the U.S. under DAVILA-PEREZ’s protection. * * * DAVILA-PEREZ, 60, of Bolivia, is charged with: conspiring to import cocaine into the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison; and conspiring to use and carry machineguns during, and to possess machineguns in furtherance of, the cocaine importation conspiracy, which carries a maximum term of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding efforts of the Special Operations Division of the DEA Bilateral Investigations Unit for its ongoing assistance. He also thanked the DEA Southern Cone Division, the DEA Newark Field Division, the DEA Aviation Division, and the U.S. Department of Justice’s Office of International Affairs for securing extradition of DAVILA-PEREZ. This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Matthew J.C. Hellman, and David J. Robles are in charge of the prosecution. The charges in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Indictment and court filings set forth herein, constitute only allegations, and every fact described should be treated as an allegation.


title: Fresno Man Pleads Guilty to Carjacking Motorist in Fullerton

component: USAO - California, Central

body_text: LOS ANGELES – A Fresno man has pleaded guilty to a federal criminal charge for carjacking a motorist last year in Fullerton and throwing her out of the car before leading law enforcement on a high-speed pursuit in which he hit a police car, then fled on foot before officers apprehended him, the Justice Department announced today. Deshawn Ricks, 35, pleaded guilty on Thursday to one count of carjacking. According to court documents, on the afternoon of June 14, 2023, Fullerton Police officers were dispatched to the scene of a carjacking that occurred in a parking structure in downtown Fullerton. The victim told officers she was sitting in her parked 2022 Mazda CX-5 SUV with the vehicle turned off when Ricks approached her, opened her car’s door, and ordered her out of the SUV. When the victim refused, Ricks placed one of his hands on her lower back and brandished a metal object – which the victim described as a “shank” – in his other hand. Ricks threatened to stab the victim, then pulled her out of the vehicle by her hair and body. Ricks then got into the vehicle and while he attempted to get it to start – the SUV had a “push to start” feature – the victim reached into the vehicle, grabbed her purse, and then walked away to get help. Ricks then drove the car within five feet of the victim and left the area. Approximately 10 minutes after being notified of the carjacking, Fullerton Police officers located Ricks driving the victim’s stolen SUV. Despite officers’ attempt to make a traffic stop, Ricks led police on a high-speed pursuit in Fullerton in which he ran red lights, drove into oncoming traffic, and hit a marked police vehicle. Later during the chase, when Ricks lost control of the speeding Mazda that then was struck by a police vehicle, he exited the SUV and fled on foot before officers apprehended him. After law enforcement stopped the vehicle, officers found a pointed, serrated metal stake type object – approximately 12 inches long – near the front driver’s seat. United States District Judge Maame Ewusi-Mensah Frimpong scheduled an April 11, 2025, sentencing hearing, at which time Ricks will face a statutory maximum sentence of 15 years in federal prison. This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Orange County Violent Crimes Task Force (OCVCTF), which is comprised of federal and local law enforcement agencies, including, but not limited to, the ATF, the Santa Ana Police Department, the Brea Police Department, the Fullerton Police Department, the Placentia Police Department, and the Orange County District Attorney’s Office. Assistant United States Attorneys Jena A. MacCabe and Chelsea Norell of the Violent and Organized Crime Section are prosecuting this case.


title: Arizona Man Associated with Online Terror Network Arrested for Production of Child Sex Abuse Material and Cyberstalking

component: Drug Enforcement Administration (DEA)

body_text: Baron Martin, 20, of Tucson, Arizona, was arrested on Dec. 11 for producing child sexual abuse material and cyberstalking offenses carried out as part of his participation in online violent terror networks known as 764 and CVLT. “764 remains a dangerous network of violent extremists who systematically target children and weaponize child sexual abuse material for the purpose of furthering an accelerationist agenda, destroying civilized society, and causing the collapse of the U.S. Government,” said Assistant Attorney General for National Security Matthew G. Olsen. “The Department of Justice is fully committed to stopping 764’s acts of terrorism and disrupting the 764 network.” ”The Department’s Project Safe Childhood strives to protect America’s youth, whether from individual stalkers or organized, virtual networks,” said U.S. Attorney Gary Restaino for the District of Arizona. “This case serves not only to deter unlawful conduct, but also to encourage parents and children to remain vigilant and seek help when they encounter predatory and violent activity in the online world.” “The details in this case are simply horrific as the defendant allegedly coerced children to harm themselves multiple times,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “The FBI’s mission is to protect the American people and we take that especially seriously when it comes to the young and vulnerable. The FBI will use all of our authorities to investigate and hold accountable anyone who preys on children.” The unsealed complaint alleges that 764 is a network of violent extremists who engage in criminal conduct within the United States and abroad. Those involved with the 764 network, individually and as a network, methodically target vulnerable, underage populations across the United States and the globe by using known online social media communications platforms to support the possession, production, and sharing of extreme gore media and child sexual abuse material (CSAM) with vulnerable, juvenile populations. Members of 764 seek to desensitize young people to violence and break down societal norms regarding violence, and they normalize the possession, production, and sharing of explicit CSAM and gore material to corrupt and groom their victims toward future violence. Historically, members of 764 systematically target underage females, groom them, extort them, and force them to mutilate themselves or others and either film or photograph such activity, at times while streaming it online for other members of the network. The network members will then commonly edit compilation photographs or videos of their victims, share these photographs or videos on their social media platforms to gain notoriety among other members of the network, and spread fear among their victims all for the purpose of accelerating chaos under the 764 ideology with an aim toward the disruption of society. The network has shifted names over time and spawned known offshoot networks. Although the network moves between social media channels and changes its name, the core goals and membership remain consistent and appear under the overarching threat of 764. Since approximately 2021, "Convict" has appeared as a participant in chatrooms related to the online terror networks 764 and CVLT. According to the complaint, Martin admitted to using the moniker “Convict” on social media platforms and, on multiple occasions, claimed online to be an owner of 764 and CVLT, teaching 764 members how to extort victims, describing himself as the “king of extortion,” and boasting he was “the catalyst for thousands of extortions” in 764. Martin also created and posted on a social media platform a detailed guide on how to identify, groom, and extort vulnerable juveniles. The complaint accuses Martin of producing child sex abuse material on Discord, a chat and gaming platform, in September 2022, by making two separate minors self-mutilate for him. On one occasion, Martin had a 13-year-old child cut his name “in every possible place” she could to include her chest, stomach, and thighs, and threatened to “leak” pictures of her if she did not comply. On other occasions, Martin directed this same minor child to cut certain designs into her body to include swastikas and satanic symbols. Martin also directed another minor victim, 16, on Discord, to scratch herself with her nails, ordering her to "draw blood,” saying “I want it dripping.” He then told her to pour rubbing alcohol over the wounds. Martin later sent three videos of this sadistic abuse of the minor to another Discord user. In the videos, the minor is scratching her forearm with her nails and pouring rubbing alcohol onto the scratches before curling up in apparent pain with a rag in her mouth. Martin is also accused of cyberstalking a different 13-year-old minor for threats he sent over Discord in September 2022. Martin told this minor victim he put a “hit” on her grandmother, and he solicited individuals to kill the victim’s grandmother. Martin agreed to pay one person $3,000 to kidnap and murder the victim’s grandmother, whose address he provided. The complaint alleges that in a separate server chat, Martin posted the phone numbers of both the minor and her grandmother and told the network to contact both numbers to harass them. If convicted, Martin faces a penalty of up to 30 years in prison for producing child sexual abuse material and a penalty of up to 10 years in prison for cyberstalking when the victim is a minor and no bodily injury resulted from the conduct. Each offense also carries a fine of up to $250,000 and up to a lifetime of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI is investigating the case. Assistant U.S. Attorneys Liza Granoff and Carin C. Duryée for the District of Arizona and Trial Attorneys Justin Sher and James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Ogden Man Found Guilty of Possessing a Firearm and Ammunition as a Convicted Felon

component: USAO - Utah

body_text: Salt Lake City, Utah – A federal jury in Salt Lake City returned a guilty verdict Thursday against a convicted felon after he unlawfully possessed a firearm and ammunition in 2022. Michael Anthony Rangel, 42, of Ogden, Utah was charged by indictment in September 2022. According to court documents and evidence presented at trial, in July 2022, officers with the Ogden Metro Gang Task Force conducted a traffic stop on a vehicle with Mr. Rangel as the passenger. Rangel, knowing he was a convicted felon and restricted from possessing a firearm and ammunition, possessed a Taurus PT111 G2 pistol. Officers seized the firearm and associated ammunition, and it was later discovered the firearm was manufactured outside the State of Utah and had traveled through interstate commerce. Rangel’s sentencing will be held at a later date before U.S. District Court Judge Howard C. Nielson, Jr. at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City. United States Attorney Trina A. Higgins of the District of Utah made the announcement. The case is being investigated by Ogden Metro Gang Task Force. Special Assistant United States Attorney Branden B. Miles and Assistant United States Attorney Luisa Gough of the U.S. Attorney’s Office for the District of Utah are prosecuting 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 gun violence and other violent crime, 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN . ###


title: DeLand Felon Sentenced For Illegally Possessing Firearms On Two Occasions

component: USAO - Florida, Middle

body_text: Orlando, Florida – Senior U.S. District Judge John Antoon II has sentenced Loveking Kitching (22, DeLand) to three years and five months in federal prison for possessing firearms and ammunition as a convicted felon. The court also ordered Kitching to forfeit the firearms and ammunition. Kitching entered a guilty plea on August 21, 2024. According to court documents, on May 13, 2023, Kitching was involved in a shooting while riding as a passenger in car near a gas station in DeLand. Within minutes of the shooting, gas station security camera footage captured Kitching exiting the car and walking into the gas station’s convenience store while holding a loaded 9mm pistol. Law enforcement officers responded to the scene and recovered the pistol and other evidence, which indicated that Kitching had exchanged gunfire with someone outside the car. During the shooting, Kitching was shot in the mouth and hand. Shell casings found inside the vehicle where Kitching had been seated indicated that he had also fired the 9mm pistol from inside vehicle. On December 12, 2023, law enforcement officers attempted to initiate a traffic stop on a vehicle Kitching was driving. Kitching failed to stop and instead led police on a vehicle chase into an industrial park that ended when Kitching reached a dead end. On the ground along the path of the chase, officers located Kitching’s cellphone and a loaded .40 caliber pistol. Kitching’s DNA and fingerprints were found on the pistol. Kitching had previously been convicted (2022) of multiple felonies and is prohibited from possessing a firearm or ammunition under federal law. This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the DeLand Police Department, and the Volusia County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Matthew Del Mastro. 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: Atlanta Woman Pleads Guilty To Aggravated Identity Theft

body_text: Tampa, Florida – United States Attorney Roger B. Handberg announces that Coretta Bates (31, Atlanta, GA) has pleaded guilty to aggravated identity theft. Bates faces a mandatory term of two years in federal prison. A sentencing date has not yet been set. According to the plea agreement, on April 18, 2023, Bates opened an account at a credit union in the name of “SLD.” She used a counterfeit North Carolina driver license with her photo and “SLD’s” identifying information to open that account. The credit union approved the application and issued a credit card to “SLD” with a $20,000 credit limit. Between May 9 and July 7, 2023, “SLD” completed 22 cash withdrawals via ITM (interactive teller machine) from those checking and savings accounts at the credit union totaling $75,700. “SLD” had taken those funds from the credit union under false pretenses and representations by using the identity of another without authorization. A joint U.S. Secret Service and Hillsborough County Sherriff’s Office investigation revealed that there were numerous accounts in different names that the same individual depicted in the “SLD” driver license had opened during the same time. They contacted the real “SLD” and confirmed that she had not contacted the credit union or opened any accounts there. The bank fraud activity from the “SLD” and other related accounts caused the credit union to suffer actual losses of approximately $165,117. This case was investigated by the United States Secret Service, with assistance from the Hillsborough County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.


title: Luzerne County Man Sentenced To 136 Months In Prison For Drug Trafficking And Possession Of Firearms In Furtherance Of Drug Trafficking

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles Vincent Benincasa, age 41, of Kingston, Pennsylvania, was sentenced on December 12, 2024, to 136 months’ imprisonment by United States District Court Judge Robert D. Mariani for possession with intent to distribute controlled substances and possession of firearms in furtherance of drug trafficking. According to United States Attorney Gerard M. Karam, on July 19, 2023, Benincasa distributed cocaine out of his home in Kingston. Two days later, the Luzerne County Drug Task Force executed a search warrant on that same home. Task Force Members discovered distribution amounts of cocaine, marijuana and fentanyl, and in total, nearly $15,000 dollars in cash. Benincasa was also in possession of one thousand rounds of ammunition and six firearms, to include multiple handguns and rifles. Two firearms bore no serial numbers, commonly known as untraceable “ghost guns.” At least one of the unserialized firearms was an AR-15 style short-barrel rife. One handgun had an extended 31-round magazine. The case was investigated by the Luzerne County Drug Task Force together with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Luisa Honora Berti is prosecuting 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. The maximum penalty under federal law for this offense is a term of life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. # # #


title: Fort Wayne Man Sentenced to 144 Months in Prison

body_text: FORT WAYNE – David L. Reynolds, 42 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to distributing controlled substances, announced United States Attorney Clifford D. Johnson. Reynolds was sentenced to 144 months in prison followed by 5 years of supervised release. According to documents in the case, Reynolds distributed 50 grams or more of methamphetamine and less than 40 grams of fentanyl in August 2023. This case was investigated by the Drug Enforcement Administration and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Stacey Speith. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Maryland Man Convicted of Sexual Assault on Baltimore Cruise Ship

component: USAO - Maryland

body_text: Baltimore , Maryland – After a two-week trial, a federal jury found Jalen Thomas Kelley, 22, Abingdon, Maryland, guilty of aggravated sexual abuse, sexual abuse, and assault within the territorial jurisdiction. Erek L. Barron, U.S. Attorney for the District of Maryland announced the verdict with Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation (FBI), Baltimore Field Office. “Sexual violence is a horrific violation of personal autonomy and will not be tolerated. We will hold perpetrators accountable,” said U.S. Attorney Barron. “This verdict should send a message to survivors that they are heard, validated and supported.” According to the evidence presented at trial, between January 1, and January 2, 2023, the defendant forcibly raped and assaulted the victim, who was a minor at the time, aboard the Carnival Legend. The cruise vessel was scheduled to return to Baltimore on January 2. In addition to the charged offenses, during trial, prosecutors presented testimony from six other individuals who alleged Kelley sexually assaulted them on separate occasions. Kelley faces a maximum sentence of life in prison. A federal district court judge will determine the sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. “We will never stop working to serve justice for the victims of predators like Mr. Kelley, no matter where the crime occurs,” said FBI Baltimore SAC DelBagno said. “Today’s conviction reflects the unwavering resolve of the FBI to protect our communities and keep Americans safe.” This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page. U.S. Attorney Barron commended the FBI, for its work in the case, and thanked the Harford County State’s Attorney’s Office; Harford Country Sherriff’s Office; Union County North Carolina District Attorney’s Office; Wingate University Campus Safety; and the Wingate Police Department for their assistance. Additionally, Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Colleen Elizabeth McGuinn, who prosecuted the federal case. He also recognized FBI Special Agent Calista Walker and Legal Administrative Specialist Julie Jarman. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: 5 Men from Grand Strand and Pee Dee Region Sentenced for Fentanyl Trafficking and Related Gun Crimes

component: USAO - South Carolina

body_text: FLORENCE, S.C. — Five men from across the Pee Dee and Grand Strand were sentenced to multi-year terms in federal prison after pleading guilty to a fentanyl trafficking conspiracy operating in and around Horry County and related firearms crimes. Joshua Rodriguez, 33, of Myrtle Beach, was sentenced to 151 months in federal prison after pleading guilty to conspiracy to distribute fentanyl; Derrick Adrien Hooks, Jr., 27, of Chesterfield, was sentenced to 96 months in federal prison after pleading guilty to conspiracy to distribute fentanyl; Christopher Brown, 32, of Pawleys Island, was sentenced to 84 months in federal prison after pleading guilty to conspiracy to distribute fentanyl; Jonathan Thien Ta, 32, of Myrtle Beach, was sentenced to 50 months in federal prison after pleading guilty to being a felon in possession of firearm and ammunition; Ta’s federal sentence will run consecutive to a state sentence he is serving on separate firearms-related conduct; and Neil Alexander Torres, 32, of Myrtle Beach, was sentenced to 18 months in federal prison after pleading guilty to being a felon in possession of firearm and ammunition. Rodriguez and Brown’s terms of imprisonment will be followed by a five-year term of court-ordered supervision. Hook’s term of imprisonment will be followed by a four-year term of court-ordered supervision. Ta and Torres’s terms of imprisonment will be followed by three-year terms of court-ordered supervision. There is no parole in the federal system. As to Ta and Torres, evidence presented to the court showed that on Nov. 26, 2020, officers with Myrtle Beach Police Department arrived at a restaurant in Myrtle Beach with a warrant to arrest Ta. Officers tried to take Ta into custody, but Ta disobeyed law enforcement commands, reaching into his waistband and pulling out a loaded 9mm handgun, which he passed to Torres before Ta attempted to flee on foot. At the time of the incident, both Ta and Torres were convicted felons who could not legally possess either the firearm or the ammunition with which it was loaded. Additional evidence presented to the court showed that from 2018 to 2023, Rodriguez, Hooks, and Brown were involved in trafficking pressed pills containing fentanyl in and around Horry County. Fentanyl is potentially lethal in very small doses. Rodriguez, who was a high-level distributor, was accountable for distributing some 14 kilograms of fentanyl over the course of the conspiracy. He frequently possessed firearms in connection with his drug trafficking and threatened to use violence against others. On July 1, 2021, law enforcement in Horry County attempted to conduct a traffic stop on a car driven and solely occupied by Hooks. Hooks fled from officers and threw pills and suspected marijuana out of the car during the ensuing chase. Law enforcement then obtained a search warrant for the home in Little River Hooks had come from just prior to the traffic stop. In Hooks’ room at the house, law enforcement found approximately 3.5 kilogram of pills, multiple kilograms of suspected marijuana, a 5.56 caliber firearm, assorted magazines, and ammunition and more than $10,000 in cash. Further investigation revealed that over the course of his involvement in the conspiracy, Hooks was accountable for trafficking 1.6 kilograms of fentanyl. Investigation showed Brown was involved as a lower-level distributor within the conspiracy. In approximately five years, Brown was accountable for trafficking 2.7 kilograms of fentanyl. Like Hooks, Brown had a history of fleeing from law enforcement. In 2023, Georgetown County Sheriff’s Office attempted to stop a vehicle driven by Brown in Pawleys Island. Brown fled, reaching speeds of 91 miles per hour while trying to evade law enforcement. United States District Judge Joseph Dawson, III, sentenced all five men. 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . This case was investigated by the FBI Columbia Field Office, Myrtle Beach Police Department, Horry County Police Department, Horry County Sheriff’s Office, and the 15 th Circuit Drug Enforcement Unit. Assistant U.S. Attorney Katherine Flynn is prosecuting the case. ###


title: Ten-Time Convicted Felon Pleads Guilty To Possessing A Firearm

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Loranzia Outin, III (48, Middleburg) has pleaded guilty to possessing two firearms as a convicted felon. Outin faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been scheduled. According to court documents, on March 22, 2024, the Clay County Sheriff’s Office and their SWAT team executed a search warrant at Outin’s residence. During the search of Outin’s room, law enforcement officers located a 9mm pistol and a .22 caliber revolver. Outin had 10 prior felony convictions, including selling methamphetamine, possession of cocaine, and possession of a weapon or ammunition by a convicted felon. As a convicted felon, Outin is prohibited from possessing firearms under federal law. This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brenna Falzetta. 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: Jury Finds Tampa Man Guilty Of Threatening To Plant A Bomb In Member Of U.S. House Of Representative’s District Office

body_text: Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Rigoberto Albizar Martinez (57, Tampa) guilty of threatening to destroy a building using an explosive. Martinez faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set. According to court documents, on May 1, 2024, Martinez called the Tampa district office of a member of the United States House of Representatives and left a vulgar, racist, obscenity-laden voicemail. In the voicemail, he threatened to plant a bomb in the Representative’s office. This case was investigated by the United States Capitol Police – Threat Assessment Section. It is being prosecuted by Assistant United States Attorney Karyna Valdes and Special Assistant United States Attorney Joe Wheeler III.


title: Assistant United States Attorney Laurel Holland Named HSI  Prosecutor of the Year for Eastern Washington

component: USAO - Washington, Eastern

body_text: Spokane, Washington – United States Attorney Vanessa Waldref announced Assistant United States Attorney (AUSA) Laurel Holland was selected as the Homeland Security Investigations (HSI) Prosecutor of the Year for the Eastern District of Washington. AUSA Holland is a founding member of the U.S. Attorney’s Branch Office in Richland, Washington, joining the office in June 2023. Throughout her career, which has included service as a Deputy Prosecuting Attorney in Benton County and as an AUSA in Yakima, Washington, AUSA Holland has been recognized for her extensive work prosecuting cases involving the exploitation of young children. A recent example is the prosecution of Lucas Murphy. In August 2024, Murphy was convicted of Online Enticement of a Minor for abducting a minor from Kennewick, Washington, to New Mexico. AUSA Holland’s relentless pursuit of justice was instrumental to holding Murphy accountable. In just the past year alone, AUSA Holland prosecuted several significant child exploitation offenders. For example, she obtained a significant sentence for Tri-cities man, who attempted to meet a 13-year old for sex in United States v. Julio Cesar Anaya . She obtained a fifteen year sentence in United States v. Gerald Alan Nott against a repeat offender, who distributed more than 1600 child pornography images, using his parents’ home internet in Richland, Washington. In United States v. Bret Michael Emineth and Malesa Hale , she and co-counsel obtained a 30 year sentence and a 28 year sentence for two co-defendants who had sexually and physically abused their victim for over four years. Her efforts provide victims with a sense of resolution, supported by the victim assistance resources she ensures are available throughout the legal process. AUSA Holland stated, “The U.S. Attorney’s Office could not do this important work without the support of HSI and the Southeast Regional Internet Crimes Against Children Task Force. The dedication of these agents and officers to protecting vulnerable children makes a lasting impact to our communities, keeping Eastern Washington safe and strong.” “Assistant United States Attorney Laurel Holland is tireless in her pursuit of justice on behalf of the young and most vulnerable among us. She approaches each case with compassion for the victim and is dedicated to holding offenders accountable,” stated U.S. Attorney Waldref. “Her skill expands beyond her advocacy. AUSA Holland spends considerable time training and mentoring law enforcement and prosecutors. I am proud to count AUSA Holland as a member of our office and offer my sincere congratulations for this well-deserved honor.”


title: OFAC-Sanctioned Afghan Man Sentenced To 30 Years In Prison For Narco-Terrorism And Witness Tampering

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today that HAJI ABDUL SATAR ABDUL MANAF, a/k/a “Haji Abdul Sattar Barakzai,” was sentenced to 30 years in prison for attempting to import heroin into the U.S., engaging in narco-terrorism for the benefit of the Taliban, attempting to engage in narco-terrorism for the benefit of the Haqqani Network, and witness tampering offenses. MANAF was convicted after a two-week jury trial that concluded in August 2024. The sentence was imposed by U.S. District Judge Jed S. Rakoff, who also presided over the trial. U.S. Attorney Damian Williams said: “Haji Abdul Satar Abdul Manaf was in the business of peddling poison. He leveraged the help of terrorists—the Taliban—to advance his drug business and to expand his drug trafficking operation to the United States. And he did not hesitate to order the kidnapping of a critical witness at gunpoint in an effort to silence him. Thankfully, our law enforcement allies, in partnership with the career national security prosecutors of this Office, put an end to his years of narco-terrorism.” DEA Administrator Anne Milgram said: “Haji Abdul Satar Abdul Manaf used heroin as a weapon of war, funding the Taliban and Haqqani Network to spread terror and death. His poison targeted our streets while his profits fueled violence against U.S. coalition forces. Today's sentence sends a clear message: narco-terrorists who bankroll terror and threaten American lives will be brought to justice, no matter where they hide.” According to the Complaint, Indictment, evidence at trial, and statements made in public court proceedings: In June 2012, the U.S. Treasury Department sanctioned MANAF pursuant to the U.S.’s terrorism sanctions authority, Executive Order No. 13224, for storing or moving money for the Taliban. In announcing the sanctions against MANAF, the Treasury Department stated that MANAF “donated thousands of dollars to the Taliban to support Taliban activities in Afghanistan and has distributed funds to the Taliban” and provided money “to aid the Taliban’s fight against Coalition Forces.” Beginning in at least January 2018, MANAF attempted to import large quantities of heroin into the U.S.; paid benefits to the Taliban to support his heroin trafficking; and attempted to provide financial support to the Haqqani Network, a violent faction of the Taliban. Specifically, MANAF participated in in-person meetings, recorded telephone calls, and electronic communications with five individuals whom MANAF understood to be affiliated with an international drug trafficking organization. During those meetings, MANAF helped arrange to import large quantities of heroin into the U.S. with the assistance of—and recognizing that some of the proceeds of that narcotics trafficking would be provided to—the Taliban and the Haqqani Network. Four of these individuals were, in fact, DEA confidential sources. The fifth was an undercover DEA agent (the “UC”). The Haqqani Network and the Taliban have committed highly public acts of terrorism against U.S. interests, including U.S. and coalition forces in Afghanistan. In August 2018, MANAF sold the UC a ten-kilogram shipment of heroin (the “Ten Kilo Shipment”) in Afghanistan, after the UC told MANAF that the heroin would ultimately be imported into the United States for sale in New York. MANAF repeatedly told the UC that MANAF had paid the Taliban in connection with the production of the Ten Kilo Shipment, and reported that heavily armed members of the Taliban would guard and transport future heroin shipments for MANAF and the UC. In August 2018, MANAF facilitated the transfer of thousands of dollars of what he believed to be narcotics proceeds through his money-remitting business to individuals MANAF had been advised were members of the Haqqani Network. MANAF subsequently agreed to supply the UC with thousand-kilogram loads of heroin for importation into the United States. Following his arrest overseas and subsequent extradition, and while incarcerated in New York pending trial in this case, MANAF directed members of his family in Afghanistan to kidnap and threaten a DEA source—a witness to his crimes—in an effort to silence him. Specifically, in a series of recorded prison calls in February and March 2019, MANAF directed his brothers to bring the source to MANAF’s family home, to “not let him go even for a minute,” to take the source’s phone, and to hand the source over to a “security chief” who would make the source “confess like a parrot” and “tell the whole story in two minutes.” MANAF’s brothers did just as he directed—they kidnapped that DEA source at gunpoint in Afghanistan and threatened to kill him. * * * In addition to the prison term, MANAF, 59, of Afghanistan, was sentenced to five years of supervised release. Mr. Williams praised the outstanding investigative efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit; the DEA European Regional Director; the DEA Copenhagen, Canberra, Dubai, Islamabad, Kabul, New Delhi, and Sydney Country Offices; the Government of Estonia; and the Australian Criminal Intelligence Commission. This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Nicholas S. Bradley, and Kimberly J. Ravener are in charge of the prosecution, with assistance from Trial Attorney Joshua Champagne of the Counterterrorism Section.


title: Tax Return Preparer Sentenced to 30 Months in Prison for Filing False Tax Returns

component: USAO - Arizona

body_text: TUCSON, Ariz. – Nour Abubakr Nour, 34, of Tucson, was sentenced on December 3, 2024, by United States District Judge Scott H. Rash to 30 months in prison. Nour pleaded guilty to Aiding and Assisting in the Preparation and Presentation of a False Tax Return on December 21, 2023. Nour operated a tax return preparation business, known as Skyman Tax, LLC, located in Tucson. For tax years 2016 through 2018, Nour prepared and filed at least 27 false individual federal income tax returns for his clients, which included falsely claimed business income. Using the business income, Nour inflated tax refunds so that he could pay himself large tax return preparation fees. Nour’s clients had no knowledge that Nour was filing false tax returns under their names. Nour was ordered to pay restitution to the United States Treasury in the amount of $150,154.00 for the false tax refunds. IRS Criminal Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution. CASE NUMBER: CR-23-00516-TUC-SHR RELEASE NUMBER: 2024-174_Nour # # # 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 X @USAO_AZ for the latest news.


title: Justice Department Announces Resolution of Criminal and Civil Investigations into McKinsey & Company’s Work with Purdue Pharma L.P.; Former McKinsey Senior Partner Charged with Obstruction of Justice

component: Civil Division

body_text: McKinsey & Company Inc. (McKinsey), a global management consulting firm based in New York, has agreed to pay $650 million to resolve a criminal and civil investigation into the firm’s consulting work with opioids manufacturer Purdue Pharma L.P. (Purdue). The resolution pertains to McKinsey’s advice to Purdue concerning the sales and marketing of Purdue’s extended-release opioid drug, OxyContin, including a 2013 engagement in which McKinsey advised on steps to “turbocharge” sales of OxyContin. Today’s resolution marks the first time a management consulting firm has been held criminally responsible for advice resulting in the commission of a crime by a client and reflects the Justice Department’s ongoing efforts to hold actors accountable for their roles in the opioid crisis. The resolution is also the largest civil recovery for such conduct. Additionally, a former McKinsey senior partner who worked on Purdue matters has been charged with obstruction of justice in federal court in Abingdon, Virginia. Martin E. Elling, 60, a U.S. citizen currently residing in Bangkok, Thailand, has been charged with one count of knowingly destroying records, documents and tangible objects with the intent to impede, obstruct and influence the investigation and proper administration of a matter within the jurisdiction of the Justice Department. Elling has agreed to plead guilty and is expected to appear in federal court in Abingdon to enter his plea and for sentencing at later dates. As part of the government’s resolution with McKinsey, the company has entered into a five-year deferred prosecution agreement (DPA) ( part one and part two ) in connection with a criminal Information filed in U.S. District Court for the Western District of Virginia against McKinsey’s U.S. subsidiary (McKinsey & Company Inc. United States, “McKinsey U.S.”). The information charges McKinsey U.S. with one felony count of knowingly destroying records, documents and tangible objects with the intent to impede, obstruct, and influence the investigation and proper administration of a matter within the jurisdiction of the Justice Department; and one misdemeanor count of knowingly and intentionally conspiring with Purdue and others to aid and abet the misbranding of prescription drugs, held for sale after shipment in interstate commerce, without valid prescriptions. McKinsey has agreed to pay a penalty of over $231 million, a forfeiture amount of over $93 million (reflecting all money it was paid by Purdue from 2004 to 2019) and a payment of $2 million to the Virginia Medicaid Fraud Control Unit to resolve the criminal allegations. McKinsey also has entered into a civil settlement agreement in which it will pay over $323 million to resolve its liability under the False Claims Act for allegedly providing advice to Purdue Pharma L.P. that caused the submission of false and fraudulent claims to federal healthcare programs for medically unnecessary prescriptions of OxyContin, as well as allegedly failing to disclose to the U.S. Food and Drug Administration (FDA) conflicts of interest arising from McKinsey US’s concurrent work for Purdue and the FDA. This brings the total payments under the global resolution to $650 million. Today’s filing includes a 71-page Agreed Statement of Facts , which provides a detailed account of McKinsey’s work with Purdue relating to OxyContin. As part of the resolution, McKinsey has agreed to implement a significant compliance program, including a system of policies and procedures designed to identify and assess high-risk client engagements. As part of this compliance program, McKinsey will implement new document retention procedures and training for all partners, officers and employees who provide or implement advice to clients. This compliance program is in addition to the provisions negotiated between McKinsey and the Department in a concurrent resolution with McKinsey & Company Africa that was announced on Thursday, Dec. 5. McKinsey has also agreed that it will not do any work related to the marketing, sale, promotion or distribution of controlled substances during the five-year term of the DPA. The resolution requires McKinsey’s Managing Partner to certify, on an annual basis, the firm’s compliance with its obligations under the DPA and federal law. “This global resolution shows the department’s commitment to holding accountable those who played key roles in fueling the opioid crisis,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Consulting companies cannot advise their clients to break the law, and then skirt responsibility when their clients do so.” “For the first time in history, the Justice Department is holding a management consulting firm and one of its senior executives criminally responsible for the sales and marketing advice it gave resulting in the commission of crime by a client,” said U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia. “This ground-breaking resolution demonstrates the Justice Department’s ongoing commitment to hold accountable those companies and individuals who profited from our Nation’s opioid crisis.” “McKinsey schemed with Purdue Pharma to ‘turbocharge’ OxyContin sales during a raging opioid epidemic — an epidemic that continues to decimate families and communities across the nation. Today’s groundbreaking resolution makes clear our office’s commitment to holding powerful companies accountable for their part in the opioid epidemic, even if they did not make, sell, or dispense the drugs,” said U.S. Attorney Joshua Levy for the District of Massachusetts. “Consulting firms like McKinsey should get the message: if the advice you give to companies in boardrooms and PowerPoint presentations aids and abets criminal activity, we will come after you and we will expose the truth.” “No amount of money can make-up for the devastating impact and heartbreaking loss of life the opioid crisis has inflicted on the people of Massachusetts, and our country. But today’s settlement is a sobering reminder that if you try to capitalize on a crisis by putting profits over patient safety — and then try to obstruct a federal investigation — you will pay a hefty price,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “McKinsey is now being held criminally and financially accountable for devising an aggressive marketing strategy that was in reality a roadmap to boost sales of highly addictive opioids. Their actions resulted in powerful prescription painkillers being used in an unsafe, ineffective, and medically unnecessary manner. As both health care consumers, and taxpayers, this type of fraud negatively impacts all of us.” “McKinsey’s management consulting work with Purdue Pharmaceuticals significantly contributed to a devastating public health crisis affecting American families and communities nationwide,” said Inspector General Christi A. Grimm of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to holding accountable those who violate the law and put the public at risk, including health care consultants who are complicit in fraudulent schemes.” “Aiding and abetting in the potential misbranding and illegal distribution of controlled substances poses a danger to U.S. consumers,” said Special Agent in Charge George A. Scavdis of the FDA Office of Criminal Investigations Metro Washington Field Office. We will continue to investigate and bring to justice companies whose actions put profits over patient safety.” “Today’s resolution holds this defendant accountable for its role in the aggressive marketing and promotion of opioids. Their actions led to medically unnecessary opioid prescriptions, which compromised the integrity of VA’s healthcare system that cares for our nation’s veterans,” said Department of Veterans Affairs (VA) Inspector General Michael J. Missal. “We thank our law enforcement partners for their diligent work in bringing this case to closure.” “It shocks the conscience that a major consulting corporation would actively seek to increase the submission of fraudulent claims for medically unnecessarily opioid prescriptions in the midst of the opioid crisis,” said Inspector General Krista A. Boyd of the U.S. Office of Personnel Management Office of the Inspector General. “The outstanding efforts of our law enforcement partners and colleagues at the Department of Justice led to this ground-breaking result. We must hold accountable those who prey upon the most vulnerable Americans in the name of increased profits.” As described in the DPA, McKinsey received credit for its cooperation with the United States in connection with the criminal investigation, including providing updates regarding information obtained through is internal investigation; highlighting documents of interest in voluminous productions; and facilitating interviews. McKinsey also engaged in extensive remedial measures, including voluntarily stopping all work in 2019 on any opioid-specific business issues; terminating two senior partners, including Elling, who communicated about deleting opioid-related documents concerning Purdue; hiring a new chief legal officer and chief ethics and compliance officer; significantly enhancing its new client selection framework; and deploying a formalized diligence review and intake process for all clients. McKinsey has agreed to continue to cooperate with the United States. McKinsey’s Criminal Liability for Misbranding The criminal misbranding charge was based on McKinsey’s advice to Purdue Pharma L.P. as set forth in the Agreed Statement of Facts filed today. Between 2004 and 2019, McKinsey contracted with Purdue on 75 different engagements in the United States. In 2007, a Purdue affiliate pleaded guilty to misbranding OxyContin, from 1996 through 2001, by falsely marketing it as less addictive, less subject to abuse and diversion, and less likely to cause dependence and withdrawal than other pain medications, and Purdue entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. After the 2007 guilty plea, McKinsey partners maintained close contact with Purdue, and in 2009, worked with Purdue to enhance “brand loyalty” for OxyContin and protect market share. In 2010 McKinsey worked with Purdue to obtain FDA approval for a version of OxyContin that was reformulated with abuse-deterrent properties. Following the introduction of reformulated OxyContin in August 2010, OxyContin sales immediately began to decline. Purdue studied the drivers for this decline and attributed it, in large part, to a drop in prescriptions for individuals abusing OxyContin and increases in regulatory safeguards intended to hinder medically unnecessary prescribing of OxyContin. In May 2013, Purdue retained McKinsey to conduct a rapid assessment of the underlying drivers of OxyContin performance, identify key opportunities to increase near-term OxyContin revenue and develop plans to capture priority opportunities. This 2013 effort was called Evolve to Excellence, or “E2E,” and included McKinsey advising Purdue on how to “turbocharge” the sales pipeline for OxyContin by, among other strategies, intensifying marketing to High Value Prescribers, included prescribers who were writing opioid prescriptions for uses that were unsafe, ineffective, and medically unnecessary. McKinsey consultants spoke with Purdue about the concerns and increasing reluctance of pharmacists and pharmacy chains to fill prescriptions for OxyContin as abuse of the drug rose. McKinsey consultants also went on several “ride-alongs” with Purdue sales representatives in the field, as these sales representatives called on prescribers and pharmacists. In notes about one of these ride-alongs, a McKinsey consultant wrote, in part, “Pharmacist; [had] a gun and was shaking; abuse is definitely a huge issue[.]” In August 2013, McKinsey partners met with certain members of the Purdue Board of Directors (members of the family that controlled Purdue) to present McKinsey’s findings and proposal; as one McKinsey partner reported afterwards, “[b]y the end of the meeting the findings were crystal clear to everyone and they gave a ringing endorsement of ‘moving forward fast.’” McKinsey also described for Purdue the financial value at stake: “hundreds of millions, not tens of millions.” For Purdue and McKinsey, E2E was a financial success. Their targeting of High Value Prescribers slowed OxyContin’s declining sales and kept Purdue’s profits flowing at the expense of public health. After the conclusion of McKinsey’s work for Purdue on E2E, McKinsey performed additional work with Purdue that also sought to maximize OxyContin sales by further targeting sales efforts to High Value Prescribers. Obstruction of Justice by Former McKinsey Senior Partner According to the charging documents filed today, Elling served as the Director of the client services team for approximately 30 of McKinsey’s engagements with Purdue. He had a senior, relationship-focused role with respect to the E2E engagement and was involved in securing the engagement for McKinsey. On July 4, 2018, Elling allegedly emailed another senior partner: “Just saw in the FT that [Purdue board member] is being sued by states attorneys general for her role on the [Purdue] Board. It probably makes sense to have a quick conversation with the risk committee to see if we should be doing anything other [than] eliminating all our documents and emails. Suspect not but as things get tougher there someone might turn to us.” According to court documents, forensic analysis of Elling’s McKinsey-issued laptop found that Elling in fact removed materials related to McKinsey’s work for Purdue from the laptop, as well as a Purdue-related folder from his Outlook email account. Elling faces a maximum penalty of 20 years in prison, three years of supervised release and a fine up to $250,000 for the obstruction of justice charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. False Claims to Federal Healthcare Programs The department’s civil False Claims Act settlement resolves allegations that, from 2013 to 2014, McKinsey US, by advising Purdue to turbocharge OxyContin marketing to High Value Prescribers, some of whom were already prescribing very large quantities of OxyContin, as a means to increase OxyContin sales, and despite its awareness of the opioid crises, thereby knowingly caused false and fraudulent claims for OxyContin to be submitted to Medicare, Medicaid, TRICARE, the Federal Employees Health Benefit Program and the Veterans Health Administration. Along with the civil settlement, McKinsey US entered into a five-year Corporate Integrity Agreement with HHS-OIG. The CIA, HHS-OIG’s first with a management consulting firm, contains novel obligations regarding risk assessment and quality control. First, the CIA requires McKinsey’s Compliance Committee to establish a robust risk evaluation process, evaluating engagement risks and providing quality oversight for certain client deliverables. Second, it requires McKinsey to establish a Quality Review Program to assess the quality of McKinsey’s advice to certain life sciences and health care clients with the dual goals of ensuring that McKinsey complies with applicable laws and does not provide or assist clients with plans, advice, or strategies that violate the law. HHS-OIG will select an independent Compliance Expert to review McKinsey’s systems and processes under the Quality Review Program and to review a sample of McKinsey client engagements, including the advice provided to those clients. False Claims to FDA The department’s civil False Claims Act settlement also resolves allegations that, from 2014 to 2017, McKinsey US knowingly misled the FDA by assigning consultants to concurrently work on both FDA projects and competitively sensitive Purdue projects, contrary to McKinsey US’ conflict of interest policy. While soliciting a contract from the FDA, McKinsey US represented to the FDA that it had a conflict-of-interest policy in which its consultants serving the FDA would not be assigned to a competitively sensitive project for a significant period of time following an assignment for FDA. The FDA then awarded McKinsey US the first in a series of contracts on a project relating to the monitoring of the safety of FDA-regulated products. McKinsey US admitted that it did not inform the FDA that its consultants worked on the Purdue projects around the same time those consultants also worked on the FDA project. Assistant U.S. Attorney Randy Ramseyer for the Western District of Virginia; Assistant U.S. Attorneys Amanda P. Masselam Strachan and William B. Brady for the District of Massachusetts; Senior Trial Counsel Kristen M. Echemendia of the Civil Division’s Commercial Litigation Branch, Fraud Section; Trial Attorneys Jessica Harvey and Steven R. Scott of the Civil Division’s Consumer Protection Branch; and Special Assistant U.S. Attorneys and Assistant Attorneys General Kristin Gray and Kimberly Bolton of the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit are prosecuting the criminal case against Elling and McKinsey. The civil resolution was handled by Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch, Fraud Section. The FDA Office of Criminal Investigations, FBI and Offices of the Inspector General of the Department of Health and Human Services, Department of Veterans Affairs and Office of Personnel Management investigated the case, with assistance from the Department of Justice’s Computer Crimes and Intellectual Property Section Cybercrime Lab. The details contained in the charging documents and civil resolution are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Spokane Business Owner Pleads Guilty to Conspiracy to Violate the Clean Air Act and Stealing COVID-19 Relief Funds

body_text: Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Pavel Ivanovich Turlak, and his Spokane-based trucking companies; PT Express, LLC, Spokane Truck Service, LLC, and Pauls Trans, LLC pleaded guilty to conspiring to illegally violate Clean Air Act emissions controls and to fraudulently obtaining hundreds of thousands of dollars in COVID-19 relief funding. Turlak is scheduled to be sentenced on April 2, 2025, at 9:30 a.m. in Spokane, Washington. Under the Clean Air Act, diesel trucks are required to maintain systems and components that limit harmful emissions of dangerous pollutants such as diesel particulates. Exposure to diesel exhaust can lead to serious health conditions like asthma and respiratory illnesses. Exposure also can worsen existing heart and lung disease, especially in children and the elderly. Heavy-duty diesel trucks are also required under the Clean Air Act to maintain an onboard-diagnostic system which monitors the functionality of the hardware emissions control components. To ensure that the required emissions control systems are functioning properly, if the system detects that an emissions control component is not working, or has been removed, it will ultimately put the truck into what is known as “limp mode,” which limits the top speed to as low as 5 miles per hour. Based on the plea agreement accepted by the court and information disclosed during court proceedings, between August 2017 and November 2023, Turlak purchased illegal “delete tune” files from Florida-based Ryan Hugh Milliken and his company, Hardaway Solutions, LLC. The files were designed to disable and defeat required emissions controls and monitoring systems. Turlak loaded the delete tunes into his own trucks used in his businesses, as well as trucks of co-conspirators who were customers of Spokane Truck Service, LLC. Milliken and Hardway Solutions, LLC pleaded guilty to violating the Clean Air Act in November 2024. In addition to violating the Clean Air Act, Turlak also admitted to fraudulently obtaining hundreds of thousands of dollars in COVID-19 Relief funding. Between March 2020 and August 2021, Turlak falsely and fraudulently applied for and received more than $300,000 in federal funding that was designated to go to eligible small businesses during the COVID-19 pandemic. Turlak and his businesses were not eligible to receive this funding due to their ongoing participation in a conspiracy to violate the Clean Air Act; yet, Turlak and his businesses falsely certified that they were eligible for this funding. As a condition of the plea agreement, Turlak and his companies entered a compliance agreement to ensure that their trucks protect the public health and comply with Clean Air Act requirements going forward. “Mr. Turlak pursued a business of profiting from pollution. By installing emission defeat devices in his own vehicles and the vehicles of others, he sought an illegal competitive advantage and evaded important safeguards designed to protect public health and the environment,” stated U.S Attorney Waldref. “Families in Eastern Washington deserve to breathe cleaner air, and I am grateful for our partners on our Environmental Task Force who are committed to protecting our community. Working together we will continue to ensure a healthy, high quality of life and keep our region safe and strong.” This case was investigated by the EPA’s Criminal Investigation Division with assistance from EPA’s National Enforcement Investigations Center, the Small Business Administration, Office of Inspector General, and the Spokane Police Department. Assistant United States Attorneys Dan Fruchter and Jacob E. Brooks, and Special Assistant United States Attorney Gwendolyn Russell, are prosecuting the case. 2:24-cr-00057-TOR


title: Robert McLane Imprisoned For Defrauding Auto Dealer Employer

component: USAO - Vermont

body_text: Burlington, Vermont – The United States Attorney’s Office announced that Robert McLane, 36, of Websterville, Vermont was sentenced yesterday in United States District Court in Burlington to 18 months of imprisonment following his guilty plea to a charge of mail fraud. Chief U.S. District Judge Christina Reiss ordered that McLane serve three years of supervised release following completion of his prison term and also pay restitution in the amount of $566,000. The court ordered McLane to surrender to the United States Bureau of Prisons on April 4, 2025 to begin serving his sentence. According to court records, between approximately March 2019 and September 23, 2022, McLane was employed by Formula Nissan, Inc., an automobile sales and service dealership located in central Vermont, where McLane served as the Parts Manager and then the Director of Parts and Service. In his positions, McLane oversaw the parts and service departments; supervised other employees; and ordered, received and paid for automotive parts needed in the dealership’s operations. In ordering, receiving and paying for parts, McLane typically communicated with Formula Nissan’s parts supplier, Nissan North America, using the Dealer Management System software. Beginning in about January 2021 and continuing until September 2022, McLane defrauded the dealership by ordering certain vehicle parts from the dealership’s parts supplier, including vehicle suspension lift kits. The cost to the dealership of each lift kit was in the $2300 to $2900 range. The supplier billed, and the dealership subsequently paid, for the lift kits McLane had ordered. As part of the scheme, McLane caused the lift kits not to be entered into the dealership’s inventory of parts-on-hand. Instead of selling the lift kits for the benefit of the dealership, McLane advertised them for sale on Facebook at prices substantially discounted from their wholesale cost to the dealership. Over the course of the scheme, McLane sold more than 200 lift kits to persons around the United States, and he shipped the kits to his own customers by using the dealership’s Federal Express account. Purchasers paid McLane for the lift kits via transfers of funds to a personal PayPal account that McLane maintained in his own name and for his own benefit. As a result of McLane’s fraud, Formula Nissan and its insurance company suffered an out-of-pocket loss of at least $575,000. This case was investigated by the Federal Bureau of Investigation. McLane is represented by Assistant Federal Public Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.


title: Third Former NYCHA Superintendent Convicted Of Bribery And Extortion Offenses At Trial

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that Corey Gilmore, a former NYCHA superintendent, was convicted of bribery and extortion under color of official right for taking thousands of dollars from contractors in exchange for awarding those contractors no-bid contracts or approving payment on previously awarded contracts at NYCHA developments for approximately six years. The verdict followed a four-day trial before U.S. District Judge Lewis J. Liman. U.S. Attorney Damian Williams said: “Corruption is an insidious crime—difficult to detect, corrosive in its effect on government agencies, and damaging to the public’s trust in government institutions. As a NYCHA Superintendent, Corey Gilmore abused his position of public trust by demanding thousands of dollars of bribes from contractors, betraying his duty to NYCHA residents, the City of New York, and taxpayers. The jury’s unanimous verdict sends a clear message that those who use their public offices for personal gain will be held accountable.” According to the evidence presented in court during the trial: NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year. When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process. However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including superintendents, could hire a contractor of their choosing without soliciting multiple bids. With either type of contract, a NYCHA employee needed to certify that the work was satisfactorily completed in order for the contractor to receive payment from NYCHA. GILMORE, a superintendent at three NYCHA developments in the Bronx between 2016 and 2023—Bronx River Houses, Eastchester Gardens, and Forest Houses—demanded and received cash in exchange for NYCHA contracts. GILMORE typically demanded $1,000 for each contract he awarded. In total, GILMORE demanded and received tens of thousands of dollars in bribes in exchange for hundreds of thousands of dollars in NYCHA contracts. Of the 70 individual NYCHA employees charged with bribery and extortion offenses in February 2024, 59 have pled guilty, and three have been convicted after trial. If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact OIGNYCHA@doi.nyc.gov or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov. * * * GILMORE, 46, of Garnerville, New York, was convicted of one count of federal program bribery, which carries a maximum term of 10 years in prison, and one count of extortion under color of official right, which carries a maximum term of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of the New York City Department of Investigation, U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the special agents and task force officers of the U.S. Attorney’s Office for the Southern District of New York. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Emily Deininger, Matthew King, and Derek Wikstrom are in charge of the prosecution, with the assistance of Paralegal Specialist Braden Florczyk.


title: Six Defendants Guilty of Drug, Firearms, and Robbery Crimes Related to Robbery of Undercover ATF Agent

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

body_text: NEW ORLEANS , LOUISIANA – Over the past few months, MICHAEL LOTT , DIANTA TROPEZ , VERNELL WOODARD , QUINDELE ADDISON , SHEENA RUDOLPH , and CORIS ADDISON , all of New Orleans, pled guilty before United States District Judge Ivan L.R. Lemelle to charges stemming from a controlled purchase of methamphetamine as well as an attempted controlled purchase of methamphetamine, during which a Alcohol, Tobacco, Firearms and Explosives (ATF) undercover agent, and another individual, were armed robbed, announced U.S. Attorney Duane A. Evans. According to court records, on August 29, 2023, VERNELL WOODARD , QUINDELE ADDISON , SHEENA RUDOLPH , and CORIS ADDISON , conspired to distribute, methamphetamine to an undercover ATF agent and another individual, at a Westbank, New Orleans apartment. The plan came to fruition when VERNELL WOODARD , QUINDELE ADDISON , and SHEENA RUDOLPH sold the undercover ATF agent approximately seven grams of pure methamphetamine. After this methamphetamine distribution deal was completed, VERNELL WOODARD arranged for the undercover ATF agent and the other individual to return to the apartment the following day to purchase more drugs. When the undercover ATF agent and the other individual arrived at the apartment complex the next day, WOODARD told them to return to the same apartment. As they were coming upstairs, MICHAEL LOTT, armed with an AR-15 style weapon,hid in a closet inside the apartment. Once the undercover ATF agent and the other individual were inside the apartment, DIANTA TROPEZ entered, pointed a Glock pistol at the undercover ATF agent and the other individual, and demanded they get down and hand over their possessions. Simultaneously, MICHAEL LOTT emerged from the closet, pointed the AR-15 style weapon at them, and also demanded they turn over their possessions. Other agents monitoring the deal, realized something was wrong and began responding. MICHAEL LOTT and DIANTA TROPEZ heard the law enforcement response, which stopped the robbery, and everyone in the apartment tried to flee. The undercover ATF agent and the other individual went onto the third-floor apartment balcony and began climbing down to escape. During their climb, the agent fell and sustained severe injuries. As a result of this criminal conduct, MICHAEL LOTT , DIANTA TROPEZ , VERNELL WOODARD , QUINDELE ADDISON , SHEENA RUDOLPH , and CORIS ADDISON were indicted on eleven-counts related to the drug trafficking and armed robbery. On August 14, 2024, SHEENA RUDOLPH pleaded guilty to the methamphetamine conspiracy and the distribution of methamphetamine on August 29, 2023. On August 29, 2024, CORIS ADDISON pleaded guilty to the methamphetamine conspiracy. On September 13, 2024, DIANTA TROPEZ pleaded guilty to conspiring to rob a person of money belonging to the United States, armed robbery of a person of money belonging to the United States, brandishing a firearm during and in relation to a crime of violence, assaulting an officer of the United States with a deadly weapon, and being a felon in possession of a firearm. On October 2, 2024, MICHAEL LOTT pleaded guilty to the same charges as TROPEZ . On November 22, 2024, VERNELL WOODARD pleaded guilty to the methamphetamine conspiracy and distribution charges, as well as the charges related to his participation in the armed robbery and to maintaining a drug involved premises. Finally, on December 5, 2024, QUINDELE ADDISON pleaded guilty to the methamphetamine conspiracy, the distribution of methamphetamine, in addition to being a felon in possession of a firearm, possessing a firearm in furtherance of drug trafficking, and maintaining a drug involved premises. SHEENA RUDOLPH and CORIS ADDISON are set for sentencing on January 22, 2025. RUDOLPH faces at least five years up to forty years in prison, a fine of up to $5,000,000, at least four years of supervised release, and a $100 per count mandatory special assessment. CORIS ADDISON faces a potential penalty of up to twenty years, a fine of up to $1,000,000, and at least three years of supervised release. DIANTA TROPEZ , MICHAEL LOTT , and VERNELL WOODARD are set to be sentenced on February 18 and 19, 2025. On the drug counts, WOODARD faces at least five years up to forty years in prison, a fine of up to $5,000,000, and at least four years of supervised release. All three defendants face the following potential penalties on the armed robbery counts: for the conspiracy, a maximum penalty of five years in prison, a fine of up to $250,000, and up to three years of supervised release; for the robbery of a person of money belonging to the United States, a penalty of up to twenty-five years in prison, a fine of up to $250,000, and up to three years of supervised release; for brandishing a firearm during a crime of violence, a mandatory minimum of at least seven years up to life in prison, that must run consecutive to every other term of imprisonment, a fine of up to $250,000, and up to five years of supervised release; and, or the assault on a federal officer, up to twenty years in prison, a fine of up to $250,000, and up to three years of supervised release. LOTT and TROPEZ also face up to fifteen years in prison, a fine of up to $250,000, and up to three years of supervised release, on the felon in possession of a firearm counts. QUINDELE ADDISON is set to be sentenced on March 26, 2025. On the drug counts, he faces up to twenty years in prison, a fine of up to $1,000,000, and at least three years of supervised release. For the possession of a firearm in furtherance of drug trafficking, he faces a mandatory minimum of at least five years up to life in prison, that must run consecutive to every other term of imprisonment, a fine of up to $250,000, and up to five years of supervised release. Finally, on the felon in possession of a firearm count, QUINDELE ADDISON faces up to fifteen years in prison, a fine of up to $250,000, and up to three years of supervised release. As to every charged count to which a defendant has pled guilty, that person would also face payment of a mandatory $100 special assessment fee. 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 investigation of this case was conducted, primarily, by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, that was assisted by the Louisiana State Police, the Federal Bureau of Investigation, the New Orleans Police Department, and Crimestoppers GNO. The case is being prosecuted by Assistant United States Attorneys David Haller, Senior Litigation Counsel and PSN Coordinator, and Nolan Paige, Chief of the Narcotics Unit.