title: Defendant Charged with Distributing Child Pornography and Sending Death Threats to a Minor

body_text: Christian Brazoban, also known as “Bison,” will be arraigned this afternoon at the federal courthouse in Central Islip on an indictment charging him with distributing child pornography to a minor and sending death threats to a minor. Brazoban was arrested on March 15, 2023 on a complaint charging him with distributing child pornography. He was indicted on March 29, 2023 and has been detained pending trial. Today’s arraignment was be held before United States District Judge Joan M. Azrack. Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the indictment. “As alleged, the defendant traumatized a child by sending her graphic images of child sexual abuse and then went even further in threatening to kill the child after she told him to stop,” stated United States Attorney Peace. “The defendant’s actions demonstrate the dangers of sextortion directed to children on the Internet. I urge parents and caregivers to talk to their children about the dangers of communicating online with strangers and anyone who may exploit them.” “HSI New York works tirelessly to protect children from sexual predators that lurk online behind the veil of social media platforms,” said Special Agent in Charge of Homeland Security Investigations New York, Ivan J. Arvelo. “Christian Brazoban is accused of despicable criminal acts that have victimized our most innocent, robbing them of their childhoods and interfering with their emotional and psychological development. HSI will do everything in its power and use every tool at its disposal to track down these heinous criminals and ensure that they are brought to justice. We are appealing to anyone who has awareness about this defendant’s alleged activities or past contacts to come forward. Please reach out to the toll-free Tip Line at 1-866-347-2423 or complete the online tip form . Both are staffed around the clock.” As set forth in court filings, between approximately March 2021 and March 2023, the victim, a minor who resided in Nassau County, engaged in online communications, including video chats, with Brazoban. On March 3, 2023, Brazoban sent online messages to the victim that contained numerous images of child pornography, including images which depicted the sexual abuse of children between the ages of 3 and 11. When the victim told Brazoban to stop, he sent her additional online messages threatening to kill her and her family. For example, Brazoban wrote: “lil girl shot dead on Long Island”; “I’m thinkin I tie you and just beat you to death with a mallet.” On March 15, 2023, HSI agents and NCPD officers executed a search warrant at the defendant’s Bronx residence and recovered a cellphone containing images of child pornography and threats that the defendant sent to the minor victim. Anyone with information about sexual exploitation by Brazoban is asked to contact HSI at https://www.ice.gov/tipline or 1-866-DHS-2-ICE (866-347-2423). The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Brazoban faces a mandatory minimum term of 5 years’ imprisonment and up to 20 years in prison. The government’s case is being prosecuted by Assistant United States Attorney Bradley T. King of the Long Island Criminal Division. The Defendant : CHRISTIAN BRAZOBAN, also known as “Bison” Age: 24 Bronx, New York E.D.N.Y. Docket No. 23-CR-138 (JMA)


title: Two Men Charged with 2012 Drug-Related Murder in Hartford

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief Jason Thody today announced the unsealing of an indictment charging MELKUAN SCOTT , also known as “Mel,” “Young God,” “Young,” and “YG,” 32, and ARTHUR STANLEY , also known as “Wig,” 33, with the drug-related murder of Serafin Velez in Hartford on February 16, 2012. On February 14, 2023, a federal grand jury in New Haven returned a two-count indictment charging Scott and Stanley with the kidnapping of Velez resulting in his death, and with causing the death of Velez through the use of a firearm. The indictment alleges that Scott and Stanley murdered Velez during and in relation to a drug trafficking crime, and that they did so deliberately, maliciously, and with premeditation. Scott and Stanley , both formerly of Hartford, have been detained in federal custody since April 2014 and are currently serving sentences for other offenses. They each appeared yesterday before U.S. Magistrate Judge Thomas O. Farrish in Hartford and entered pleas of not guilty, and Judge Farrish ordered the indictment unsealed. If convicted of the charges, Scott and Stanley face a mandatory sentence of life imprisonment, or death if the government seeks the death penalty in the matter. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by the Federal Bureau of Investigation and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys A. Reed Durham and Robert S. Ruff.


title: Suburban Nurse Pleads Guilty to Tampering With Patient Medications

component: USAO - Illinois, Northern

body_text: CHICAGO — A suburban Chicago nurse has pleaded guilty in federal court to one count of tampering with a consumer product. SARAH DIAMOND, 30, of Woodstock was employed as the Assistant Director of Nursing at a Chicago-area medical rehabilitation center where she was responsible for dispensing medications to patients. In July and August 2021, Diamond removed morphine from bottles prescribed to patients and replaced it with another liquid, knowing the diluted substance would be dispensed to the patients. Diamond removed the morphine with reckless disregard and extreme indifference for the risk that the patients would be placed in danger of bodily injury. Diamond diluted a bottle of morphine intended for one of the patients, so that it contained only approximately 26% of the declared amount of morphine; and diluted a bottle of morphine intended for another patient so that it contained only approximately 53% of the declared amount of morphine. Diamond then administered liquid morphine to these patients using the diluted bottles, withholding the remainder of the pain medication intended for them for her own personal use. In total, Diamond removed liquid morphine intended for use by at least five patients at the rehabilitation center, each of whom had been prescribed liquid morphine to manage their pain. A sentencing date has not yet been scheduled. Diamond faces up to a maximum of ten years in federal prison. The plea is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Ronne G. Malham, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations. Valuable assistance was provided by the Crystal Lake Police Department. The government is represented by Assistant U.S. Attorney Heidi Manschreck.


title: Queen City Motors Owner Sentenced for $783,000 Fraud Scheme

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – A Nixa, Mo., man who used his business to steal customers’ identity information in a scheme to obtain hundreds of thousands of dollars in fraudulent car loans was sentenced in federal court today. Chris R. King, 48, was sentenced by U.S. Chief District Judge Beth Phillips to four years in federal prison without parole. The court also ordered King to pay $646,597 in restitution to his victims and to forfeit the same amount to the government. On Nov. 20, 2021, King pleaded guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of aggravated identity theft. King, formerly the co-owner of Queen City Motors, a used car business in Springfield, Mo., admitted that he stole the identity information of individuals who were interested in obtaining loans to purchase vehicles from him. King used that information, without the knowledge or authorization of the potential customers, to fraudulently submit loan applications and receive funds wired to his bank account from Credit Acceptance, a company that dealt specifically in the approval of subprime loans for individuals with poor credit ratings. King fraudulently submitted at least 30 automobile loan applications and received cash deposits of approximately $783,475 between Nov. 1, 2018, and Nov. 8, 2020. This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service and the Springfield, Mo., Police Department.


title: California Man Sentenced to 7 Years in Prison for Sex with Missouri Teen

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS – A man from California admitted traveling to Missouri to have sex with a teenage girl and was sentenced Tuesday to seven years in prison. Edson S. Ortiz, 30, of Napa County, pleaded guilty at the start of Tuesday’s hearing in U.S. District Court in St. Louis Tuesday to one felony count of traveling with the intent to engage in illicit sexual conduct. He admitted that he began communicating with the Missouri teen over Snapchat and WhatsApp. On Oct. 23, 2020, Ortiz flew from California to St. Louis. The next day, at a hotel in Chesterfield, Ortiz engaged in illegal sex acts with the girl, who was then 16. Ortiz was 27. He also recorded the sexual contact on his iPhone. That video, as well as pictures, were discovered after a January 2021 search of his home that was triggered when Ortiz uploaded child sexual abuse material to Snapchat. The case was investigated by the St. Louis County Special Investigations Unit, the Napa County (California) Sheriff’s Office and the FBI. Assistant U.S. Attorney Jillian Anderson 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 U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Great Falls man sentenced to four years in prison for illegal possession of firearms

component: USAO - Montana

body_text: GREAT FALLS — A Great Falls man who admitted to illegally possessing firearms while on supervision for prior felony convictions was sentenced today to four years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said. Zachary Paul Potts, 26, pleaded guilty in November 2022 to prohibited person in possession of a firearm and ammunition. Chief U.S. District Judge Brian M. Morris presided. The government alleged in court documents that in the fall of 2021, Potts was on state supervision for multiple felony convictions when he was stopped while driving a vehicle in Great Falls with a suspended license. During a probation search of the vehicle, law enforcement found a .357-caliber revolver in a backpack and a 9mm pistol under the driver’s seat. Potts told the officer he knew about the pistol and that he had used it in the past. The government further alleged that the backpack also contained a small amount of suspected methamphetamine, more than four grams of fentanyl powder, a scale and empty plastic baggies. Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and Great Falls Police Department. 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: Mason City Woman Sentenced to Federal Prison for Distributing Methamphetamine

component: USAO - Iowa, Northern

body_text: A Mason City woman was sentenced April 10, 2023, to more than 7 years in federal prison. Kari Ann Peters, age 36, from Mason City, Iowa, received the prison term after an August 31, 2023, guilty plea to distribution of methamphetamine. In a plea agreement, Peters admitted to distributing methamphetamine around the Mason City, Iowa area. Peters was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Peters was sentenced to 84 months’ imprisonment. She must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Peters is being held in the United States Marshal’s custody until she can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Mason City Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 21-3033. Follow us on Twitter @USAO_NDIA.


title: Third Defendant in Pleads Guilty in Double Armed Carjacking Case

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dayon Hackett, 20, of Philadelphia, PA, pleaded guilty today to one count of carjacking and one count of attempted carjacking. Hackett and his co-defendants, Jaheym Newsome, 20, of Philadelphia, and Taquan Mershon, 19, of Philadelphia, were charged by Superseding Indictment with these offenses in connection with an armed carjacking they committed on December 22, 2021, in the Bridesburg section of Philadelphia, and an attempted armed carjacking in South Philadelphia later that same day. Newsome and Mershon pleaded guilty to these same charges on March 20, 2023. As detailed in the Criminal Complaints previously filed in this case, in the first incident, Hackett, Newsome, and Mershon carjacked a man at gunpoint as he prepared to head to work in early morning hours of December 22, 2021. The three men then took the car they stole in Bridesburg and drove it South Philadelphia, where they attempted to carjack a man who was coming home from work and looking for a parking spot. Hackett and Newsome opened the door to that vehicle and attempted to pull the victim out of the car. Upon observing a firearm on the victim’s lap, Hackett and Newsome opened fire on the victim, striking him multiple times. The victim returned fire and Hackett was struck multiple times. Hackett and Newsome then returned to the waiting vehicle that Mershon was driving, and Mershon and Newsome dropped Hackett on the floor of a nearby emergency room, fleeing in the vehicle they had carjacked earlier that morning. All three individuals were subsequently identified, charged by federal Criminal Complaint, and taken into custody. A grand jury returned the Superseding Indictment on September 13, 2022. “Today’s guilty plea is another fine example of the successful partnership that is the Philadelphia Carjacking Task Force,” said U.S. Attorney Romero. “If you commit a violent offense like a gunpoint carjacking, you can expect the federal authorities to come knocking at your door.” “ATF is on the frontline in the fight against violent crime, particularly armed carjackings,” said Eric DeGree, Special Agent in charge of ATF’s Philadelphia Field Division. “While we hope this case deters those willing to use gun violence against American citizens, ATF investigators stand ready to work with our local, state and federal partners whenever gun crime occurs in our community.” The swift and relentless action to investigate and federally charge these defendants is the result of the Philadelphia Carjacking Task Force, which is comprised of members of the U.S. Attorney’s Office’s Violent Crime Unit; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department. The goal of the Taskforce is to stem the wave of armed carjackings and violent crimes through investigative and enforcement techniques meant to identify and refer for federal prosecution all who terrorize innocent victims through commission of these offenses within Philadelphia and surrounding areas. After pleading guilty, Newsome is set to be sentenced on July 12, 2023, Mershon is set to be sentenced on July 24, 2023, and Hackett is set to be sentenced on August 14, 2023, before the Honorable Nitza I. Quinones-Alejandro. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.


title: Nigerian Man Pleads Guilty to Online Fraud Schemes

component: USAO - Massachusetts

body_text: BOSTON – A Nigerian man pleaded guilty yesterday to his role in online fraud schemes after being extradited from the United Kingdom. Happy Chukwuma, 30, pleaded guilty to one count of wire fraud conspiracy. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for May 5, 2023. Chukwuma was indicted by a federal grand jury in August 2019. He was arrested and detained in the United Kingdom at the request of the United States in September 2022 and extradited to the United States in March 2023. Between November 2015 and January 2019, Chukwuma and his co-conspirators participated in a variety of online fraud schemes, including “phishing” and romance scams. They exchanged victims’ personally identifiable information, including identification and financial documents, and engaged in financial transactions with that information. Several of the victims whose information was compromised were from Massachusetts. Phishing schemes mimic the appearance of legitimate websites to gather victims’ online credentials, including usernames, passwords, financial account information, social security numbers and other types of personal identifiable information. In romance scams, perpetrators generally create fictitious online personas to develop online romantic relationships with individuals in the United States, and then leverage those relationships to obtain money and property. The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case. The Justice Department’s Office of International Affairs and the United Kingdom’s Metropolitan Police National Extradition Unit provided critical assistance in securing the arrest and extradition of Chukwuma.


title: Hamilton felon sentenced to five years in prison for illegal possession of firearms, including “ghost gun”

body_text: MISSOULA — A Hamilton man who admitted to illegally possessing firearms and ammunition, including a “ghost gun,” after having been convicted of felonies, was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said. Kevin Michael Jakub, 38, pleaded guilty in November 2022 to prohibited person in possession of a firearm and ammunition. U.S. District Judge Dana L. Christensen presided. The government alleged in court documents that in January 2022, law enforcement executed a search warrant on a storage unit of Jakub’s and recovered two semi-automatic rifles with large capacity magazines, one pistol, three suppressors, various firearm parts and thousands of rounds of ammunition. In July 2022, law enforcement contacted Jakub after receiving a report of him possibly discharging a firearm. Jakub admitted to firing his pistol, and agents recovered a pistol described as a “ghost gun,” which means it had no identifiable markings. Jakub, who had three previous felony convictions in Colorado and Montana for drug offenses, was prohibited from possessing firearms and ammunition. Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force, Homeland Security Investigations, U.S. Postal Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol and Ravalli County Sheriff’s Office. 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: South Florida Marketer Sentenced to Prison Term for Buying and Selling Over 2.6 Million Medicare Beneficiary Identification Numbers

component: USAO - Florida, Southern

body_text: MIAMI – A Palm Beach County man was sentenced on Friday in federal court to 41 months in prison following his earlier guilty plea to buying and selling more than 2.6 million Medicare beneficiary identification numbers, along with other personal identifiers. In one of the first prosecutions brought under The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), Charles William McElwee, 36, was sentenced to 41 months imprisonment following his guilty plea to one count of conspiracy to violate MACRA by buying and selling beneficiary identification numbers. Among other things, MACRA makes it illegal to buy, sell, or distribute without lawful authority Medicare or Medicaid beneficiary numbers. (Title 42, United States Code, Section 1320a-7b(b)(4)). As part of his plea, McElwee admitted that he and his co-conspirators used “data mining” and “social engineering techniques” to collect Medicare beneficiary information, which McElwee then advertised and sold online. The trafficked information included beneficiary names, addresses, dates of birth, social security numbers, and Medicare beneficiary identification numbers. According to the indictment, some of the illicit transactions involved foreign actors, including sellers in the Philippines and buyers in Egypt. U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Miami Region; and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the sentence. HHS-OIG Miami and FBI Miami investigated the case. Assistant U.S. Attorney Jon Juenger prosecuted it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture. Medicare beneficiaries who believe they have been a victim of medical identity theft can file a complaint with the HHS-OIG hotline by calling 1-800-HHS-TIPS (800-447-8477) or with the Centers for Medicare and Medicaid Services by calling 1-800-MEDICARE (1-800-633-4227). Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 22-cr-60202. ###


title: NoHo Man Admits Lying to FBI about His Role in Creating Fake Basquiat Paintings Seized Last Summer from Florida Museum

component: USAO - California, Central

body_text: LOS ANGELES – A one-time auctioneer has agreed to plead guilty to lying to FBI agents about the origins of paintings attributed to Jean-Michel Basquiat that were seized last year from the Orlando Museum of Art, admitting in court papers filed today that he and another man created the fake art and that he falsely attested to the paintings’ provenance. Michael Barzman, 45, of North Hollywood, was charged today in federal court with making false statements to the FBI during an interview in August 2022. In a plea agreement also filed today, Barzman agreed to plead guilty to the felony offense and made a series of admissions about the fake paintings. Barzman has agreed to surrender to federal authorities for a court appearance that has not yet been scheduled. The plea agreement and a criminal information filed today outline how Barzman and a second man – identified in the court documents as “J.F.” – created the fake Basquiats in 2012 after hatching a plan to market the bogus artwork. “J.F. spent a maximum of 30 minutes on each image and as little as five minutes on others, and then gave them to [Barzman] to sell on eBay,” according to the plea agreement. “[Barzman] and J.F. agreed to split the money that they made from selling the Fraudulent Paintings. J.F. and [Barzman] created approximately 20-30 artworks by using various art materials to create colorful images on cardboard.” Barzman, who in 2012 ran an auction business focused on purchasing and reselling the contents from unpaid storage units, further admitted that he attempted to create a false provenance – or history of the ownership of a piece of art – for the purported Basquiats by claiming in a notarized document that the fraudulent paintings were found inside a storage unit that a well-known screenwriter had rented. The bogus art was sold and made its way through the art market, forming the basis of an exhibition that opened in February 2022 at the Orlando Museum of Art. “Most of the featured works had, in fact, been created by [Barzman] and J.F.,” Barzman admitted in his plea agreement. The FBI executed a search warrant at the Orlando Museum of Art in June 2022 and seized 25 pieces that Basquiat purportedly had created. During an August 18, 2022 interview with special agents of the FBI, Barzman denied making the paintings himself. “At the time of the interview, [Barzman] knew that he and J.F. had created the paintings and that his statements to the contrary were untruthful,” Barzman admitted in his plea agreement. “His statement that he did not make the paintings or have someone make them for him were material to the activities and decisions of the FBI and were capable of influencing the agency’s decisions and activities.” In another FBI interview in October 2022, Barzman admitted “it was a lie” that the artwork had come from the storage locker, but he continued to deny making the fraudulent paintings – even after agents showed him the back of a painting on cardboard seized from the Orlando Museum of Art in which his name appears on a mailing label that had been painted over. The crime of making false statements to a government agency carries a statutory maximum penalty of five years in federal prison. The FBI’s Art Crime Team is investigating this matter. Assistant United States Attorneys Mark A. Williams, Chief of the Environmental and Community Safety Crimes Section; Matthew W. O’Brien of the Environmental and Community Safety Crimes Section; and Alix L. McKenna of the General Crimes Section are prosecuting this case. Assistant United States Attorney Daniel Boyle of the Asset Forfeiture and Recovery Section is handling the forfeiture of seized artwork.


title: Springfield Man Sentenced to 35 Years for Child Sexual Abuse, Child Pornography

body_text: SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for sexually assaulting a child victim and recording the abuse on his cell phone. William Shane Berg, 50, was sentenced by U.S. Chief District Judge Beth Phillips to 35 years in federal prison without parole. The court also sentenced Berg to spend the rest of his life on supervised release following incarceration. On June 2, 2022, Berg pleaded guilty to one count of the sexual exploitation of a minor and one count of receiving child pornography over the internet. Berg admitted that he sexually abused a minor victim, identified in court documents as John Doe 2. Law enforcement officers executed a search warrant at Berg’s residence on April 12, 2020, and seized a laptop computer, VHS tapes, CDs, two laptop hard drives, a portable hard drive, a CD writer, USB drives, a camera and media card, three Chromebooks, and a cell phone. Investigators found multiple files on the cell phone and the laptop computer that depicted Berg sexually abusing John Doe 2. They also found additional files of child pornography that Berg downloaded from the internet. When the victim was interviewed at the Springfield Child Advocacy Center, he told investigators that Berg started sexually abusing him when he was in the fifth grade. He said Berg took videos on his cell phone during the sexual abuse. This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the FBI and the Springfield, Mo., Police Department. Project Safe Childhood 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 United States Attorneys' 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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."


title: Fox Valley Man Indicted for Child Pornography Production and Distribution

component: USAO - Wisconsin, Eastern

body_text: United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on April 11, 2023, a federal grand jury indicted John D. Schaefer (age: 34) of Menasha and Oshkosh, Wisconsin, on a count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a), and a count of distribution of child pornography in violation of Title 18, United States Code, Section 2252A(a)(2)(A). The indictment alleges that on or about August 2, 2020, Schaefer “employed and used a minor” for the purpose of creating a “visual depiction of a minor engaged in sexually explicit conduct.” It further alleges that on or about September 21, 2021, Schaefer distributed a digital video depicting the sexual assault of a prepubescent child. If convicted of the production charge, Schaefer faces a mandatory minimum 15 years’ imprisonment and a maximum of 30 years’ imprisonment. He faces up to 40 years’ imprisonment on the distribution charge. He also faces up to a $250,000 fine on each count. This case was investigated by the City of Menasha Police Department and the City of Oshkosh Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble. An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt. 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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. # # # For Additional Information Contact: Public Information Officer Kenneth.Gales@usdoj.gov 414-297-1700


title: West Plains Man Indicted for Stealing Timber from Mark Twain National Forest

body_text: SPRINGFIELD, Mo. – A West Plains, Mo., man was indicted by a federal grand jury today for stealing timber from Mark Twain National Forest. Justin Lee Massey, 39, was charged in an indictment returned by a federal grand jury in Springfield. Today’s indictment alleges that Massey stole timber from federal property in Howell County, Mo., between Dec. 15, 2020, and Jan. 20, 2021. The indictment also includes a forfeiture allegation, which would require Massey to forfeit to the government any property obtained from the alleged violation, including a money judgment of $30,000. The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Forestry Service.


title: Inmate Indicted for Assaulting Warden at Medical Center

body_text: SPRINGFIELD, Mo. – An inmate at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., was indicted by a federal grand jury today for assaulting the warden. Omar Romero-Morales, 36, was charged in an indictment returned by a federal grand jury in Springfield. According to the indictment, Romero-Morales punched the medical center’s warden in the face. The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI, the U.S. Medical Center for Federal Prisoners, and the Bureau of Prisons.


title: Windsor Locks Man Who Victimized Teens Through Snapchat Pleads Guilty to Child Exploitation Charges

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Michael J. Krol, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston, announced that JUSTIN McKENNEY, 29, formerly of Windsor Locks, waived his right to be indicted and pleaded guilty today in Hartford federal court to child exploitation offenses. According to court documents and statements made in Court, in October 2021, Glastonbury Police began investigating the sexual assault of a 13-year-old girl by an individual she met on Snapchat. The investigation revealed that McKenney, posing as a high school student and using the Snapchat username “keepingupg,” began communicating with the minor victim in September 2021, and he subsequently enticed her to engage in sexual activity. In pleading guilty, McKenney also admitted that he received child pornography from three other minor females between the ages of 13 and 17. McKenney pleaded guilty to one count of enticement of a minor to engage in illegal sexual activity, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and one count of receipt of child pornography, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer in New Haven on July 11. McKenney has been detained since his arrest on March 17, 2022. This matter has been investigated by Homeland Security Investigations (HSI), the Glastonbury Police Department, the Windsor Locks Police Department, the Manchester Police Department, and the Connecticut Center for Digital Investigations, with the assistance of the Hudson (Mass.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford. This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc . To report cases of child exploitation, please visit www.cybertipline.com .


title: Donaldsonville Woman Sentenced to 78 Months in Federal Prison for Pandemic Benefits Fraud Scheme

component: USAO - Louisiana, Middle

body_text: United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick sentenced Tynea Lynnshay Gray, age 24, of Donaldsonville, Louisiana to 78 months in federal prison following her conviction for mail fraud. The Court further sentenced Gray to serve three years of supervised release following her term of imprisonment and ordered her to pay $906,534 in restitution. Between June 2020 and October 2021, Gray submitted fraudulent claims for unemployment insurance benefits in California in her name and in the names of other individuals. Gray also submitted fraudulent claims for Paycheck Protection Program (“PPP”) benefits in the names of fictitious businesses and based on fictitious business profits and losses. Through her unemployment insurance scheme, Gray falsely claimed that she and others were working in California prior to the coronavirus pandemic and that they lost their employment due to the pandemic. Gray obtained names, birth dates, and Social Security numbers of others and submitted fraudulent claims for unemployment insurance benefits in their names, with and without their knowledge. Gray captured people’s identifying information through social media. Upon submitting the claims and receiving the funds, she either gave a portion of the funds to others or kept all the funds for herself. Through her scheme, Gray obtained hundreds of thousands of dollars in prepaid debit cards in the mail. Gray also devised a scheme to defraud lenders and the United States, through the Small Business Administration, by filing false and fraudulent applications for PPP funds. In furtherance of the scheme, Gray submitted forged bank statements, false tax documents, and made misrepresentations in her PPP applications. Gray also falsely reported bank cards stolen or lost so that she would receive new cards with additional pandemic benefit funds. Throughout the course of the fraudulent schemes, Gray caused over $550,000 in prepaid debit cards to be mailed to her addresses, to which she and others were not entitled. Additionally, Gray caused $20,833 to be deposited into her bank account to which she was not entitled. U.S. Attorney Gathe stated, “At a time when over 1 million U.S. Citizens died from COVID-related issues, Ms. Gray took advantage of the system designed to help American taxpayers in this time of need. The sentencing today shows that these cases will not be tolerated. With the help of federal partners such as the FBI and U. S. Department of Labor-OIG, my office will continue to prosecute these cases and redeem taxpayer money.” “Ms. Gray chose to con the system during one of the most vulnerable times in U.S. history,” said New Orleans FBI Special Agent in Charge Douglas A. Williams, Jr. “The FBI is committed to aggressively pursuing those who seek to defraud the American taxpayers for their own personal gain. We thank our partners at the United States Attorney’s Office Middle District of Louisiana and the Office of Inspector General at the U.S. Department of Labor for their dedication in pursuing justice in this case.” “Tynea LynnShay Gray used social media as a catalyst to defraud the California Employment Development Department (CA-EDD) of more than $500K in Pandemic Unemployment Assistance (PUA), both in her name and in the names of others, with and without their consent. The scheme orchestrated by Gray resulted in a tremendous loss of pandemic relief needed by those legitimately unemployed as result of the pandemic. We will continue to work diligently to protect the integrity of the unemployment insurance system and bring those who exploit these benefit programs to justice.” said Special Agent-in-Charge Steven Grell, Central Region, U.S. Department of Labor, Office of Inspector General. This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor-OIG and was prosecuted by Assistant United States Attorney Edward H. Warner.


title: Browning man admits stabbing man on Blackfeet Indian Reservation

body_text: GREAT FALLS — A Browning man accused of stabbing another man at a party in Browning, on the Blackfeet Indian Reservation, admitted to assault charges today, U.S. Attorney Jesse Laslovich said. Frank David Francis Boy, 24, pleaded guilty to assault with a dangerous weapon. Boy faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Sept. 7. Boy was detained pending further proceedings. The government alleged in court documents that on Sept. 18, 2022, Boy was drinking alcohol with friends in East Glacier. The group decided to go for a drive and ended up at a house party in Browning. The victim, identified as John Doe, who lived at the residence at the time, and Boy arm-wrestled and then got into a wrestling match, which led to a disagreement. Boy and his companions were told to leave, but Boy refused. Boy’s companions pulled Boy from the residence and as they were walking away, Boy turned around and began to engage John Doe. Boy walked toward John Doe, who was backing up, and then stabbed John Doe four or five times in the left shoulder and back area. Another individual captured the assault on video. John Doe was treated for injuries at a hospital in Great Falls. Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case, which was investigated by the FBI and Blackfeet Law Enforcement Services. XXX


title: Denton County Man Sentenced for Threatening Jewish Organization

body_text: SHERMAN, Texas – A Denton man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. Anthony Joseph Hammer, 34, pleaded guilty on May 3, 2022, to interstate communication of a threat and was sentenced to 24 months in federal prison today by U.S. District Judge Richard A. Schell. According to information presented in court, on July 28, 2021, Hammer sent a threatening electronic message to the Anti-Defamation League (ADL), a Jewish civil rights organization based in New York, via the ADL’s website’s contact page. In his message, Hammer stated the following: “Come and find me. Come after me. Come hunt me down. This is me. This is really me. All of my info. I will kill all of you Zionist pigs. 4th reich soon.” “Threatening to harm others by using phones, computers or mail is a federal crime and taken very seriously,” said U.S. Attorney Brit Featherston. “Hammer believed he could promote his malicious agenda by making threats to kill and to disrupt business activity. That’s why he is going to jail and being punished. Others who do the same will have the same fate.” “The FBI is tasked with upholding the Constitution to include the right to Free Speech as outlined in the First Amendment. In this case, the direct threats made by the defendant, fell outside of that protected right,” said FBI Dallas Special Agent in Charge Chad Yarborough. “The FBI and our law enforcement partners take all threats seriously and will hold accountable anyone who seeks to intimidate and cause fear simply because they disagree with the views of their fellow citizens.” An investigation by federal agents revealed that Hammer was already under investigation for threatening calls he made to Pennsylvania Governor Tom Wolf’s office. Hammer made seven calls to Governor Wolf's office requesting to speak to the Governor. When staff members refused to put him through to the Governor, Hammer repeatedly threatened to kill Wolf and his staff members. This conduct was taken into consideration in calculating Hammer’s appropriate sentence in the Eastern District of Texas. This case was investigated by the FBI and the Pennsylvania Capitol Police and prosecuted by Assistant U.S. Attorney Ryan Locker in the Eastern District of Texas in coordination with Assistant U.S. Attorney Carl Marchioli in the Middle District of Pennsylvania. ###


title: Honduran citizen admits to two federal felonies

component: USAO - Texas, Southern

body_text: HOUSTON – A 23-year-old non-U.S. citizen illegally residing in Houston has pleaded guilty to illegally re-entering the country and to unlawfully possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani. Jairon Odair Pineda-Gomez is a citizen of Honduras and is an alleged member of the 18th Street gang. In January 2021, Pineda-Gomez was arrested for illegally re-entering the country. Released on bond, he later cut off his ankle monitor and absconded while charges were pending. Authorities arrested him for the bond violation in September 2022, at which time he had a Smith & Wesson .40 caliber pistol in his backpack. Records indicate Pineda-Gomez had pointed the pistol at multiple people, including a 9-year-old child, in July 2022. He was also seen on surveillance video shooting a gun in the air. Chief U.S. District Judge Randy Crane accepted the plea and set sentencing for June 21. At that time, Pineda-Gomez faces up to 15 years for the firearms conviction as well as another two for the illegal re-entry as well as a possible $250,000 maximum fine. He has been and will remain in custody pending that hearing. U.S. Marshals Service and Immigrations and Customs Enforcement Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Stephanie Bauman is prosecuting the case.


title: Two Brothers Charged with Trafficking Fentanyl and Methamphetamine

body_text: BOSTON – Two brothers have been indicted by a federal grand jury in Boston for allegedly conspiring to traffic large quantities of methamphetamine and fentanyl. Noel Haro, 48, of Shirley and Marcos Haro, 38, of Sacramento, Calif., were indicted on one count of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine and 40 grams or more of fentanyl; two counts of distribution of and possession with intent to distribute 50 grams or more of methamphetamine; aiding and abetting; and one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl; aiding and abetting. Marcos Haro was arrested on April 4, 2023 in the Eastern District of California and remains in federal custody. He will appear in federal court in Boston at a later date. “Law enforcement listens to calls made from carceral facilities. Despite this known fact, we allege these brothers conspired together to distribute alarmingly significant amounts of fentanyl and methamphetamine in our Commonwealth. Both of these defendants are very much aware of the risks and harm involved with selling drugs, with Marcos having spent seven years in prison for possessing a controlled substance while armed with an assault weapon and Noel engaging in this conduct while incarcerated and serving a life sentence for drug distribution, conspiracy and money laundering,” said United States Attorney Rachael S. Rollins. “This brazen behavior will be met with the full force of federal government resources and prosecution.” “Despite being locked up behind bars, Noel Haro is still an influential leader in a large-scale international gang that is heavily involved in drug, weapons, and human trafficking, and now stands accused of conspiring with his brother, Marcos, to traffic large amounts of deadly fentanyl and methamphetamine into Massachusetts,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “These latest arrests in connection with ‘Operation Raising Arizona’ are a significant blow to this drug trafficking organization that has thrived on peddling poison, resulting in pain, violence, and destruction in our communities.” “Partnerships with public safety agencies play an important part of the Department's mission and are crucial in protecting our communities,” said the Department of Correction’s Commissioner Carol Mici. “The Massachusetts Department of Correction is extremely proud of its investigators from the Office of Investigative Services and their role in this investigation." According to the charging documents, Noel Haro is a member and influential leader of the “Border Brothers” gang – a large-scale international gang known to be heavily involved in drug, weapon and human trafficking in Southern Arizona with a presence in Nogales, Mexico and the Arizona prison system. Noel Haro is currently serving a life sentence at a Massachusetts Department of Correction facility in connection with convictions in Arizona for drug distribution, conspiracy and money laundering. Noel Haro was previously serving his sentence at a facility in Arizona but was transferred to serve his sentence in Massachusetts upon being deemed a security concern due to his alleged influence over other inmates and repeated introduction of cell phones and narcotics into Arizona facilities. Beginning in or about April 2019, and investigation began into Noel Haro’s alleged attempts to facilitate the trafficking of narcotics to Massachusetts during his inmate phone calls. Specifically, during his inmate calls, Noel Haro allegedly attempted to solicit friends and family members to transport narcotics from Arizona to Massachusetts on his behalf. In April 2022, recorded inmate calls allegedly indicated that Noel Haro worked with his brother, Marcos Haro, to arrange drug deals outside of prison. According to court documents, in June 2022, Marcos Haro agreed to supply an individual with samples of multiple narcotics – including fentanyl and methamphetamine. It is alleged that Marcos Haro later mailed the narcotics to the individual concealed in a purple teddy bear inside a postal package. It is alleged that, on July 13, 2022, the package was retrieved and found to contain suspected powdered fentanyl, five fentanyl pills, methamphetamine and approximately 3.1 grams of suspected heroin. On July 25, 2022, during a recorded inmate call, Noel Haro and Marcos Haro allegedly discussed selling one pound of methamphetamine to the same individual and agreed on a sale price of $5,000. It is alleged that, on July 27, 2022, a package sent from Marcos Haro was retrieved and found to contain approximately 446.6 grams of 99% pure methamphetamine. During a recorded inmate call on Aug. 10, 2022, Noel Haro allegedly directed Marcos Haro to arrange the sale of five pounds of methamphetamine to the individual. Later, on Sept. 12, 2022, two packages allegedly sent from Marcos Haro were retrieved and each found to contain approximately 892.3 grams of 86% pure methamphetamine and approximately 1,320.2 grams of 95% pure methamphetamine. In October 2022, the individual communicated with Marcos Haro to arrange the purchase of 2,000 fentanyl pills. On Oct. 16, 2022, Noel and Marcos Haro allegedly discussed the deal and pricing of the fentanyl pills during recorded inmate calls and on Nov. 17, 2022, Marcos sent the individual a photograph of a United States Postal Service shipping box and label, and a photograph of a shipping receipt. On Nov. 20, 2022, a package allegedly sent by Marcos Haro to the individual was seized and found to contain approximately 2,000 blue pills which tested positive for approximately 215.3 grams of fentanyl. According to court documents, on April 2, 2023, Marcos Haro was arrested in Sacramento, Calif. following a motor vehicle stop. A 9mm handgun with eight live rounds in the magazine and approximately 2.9 grams of suspected fentanyl that field tested positive for the presence of opiates, were allegedly found during a subsequent search of Marcos Haro’s vehicle. Marcos Haro has a criminal history that includes a conviction in 2016 for possession of a controlled substance while armed and illegal possession of an assault weapon with a large capacity magazine, for which he was sentenced to seven years in prison. The charge conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine and 40 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charges of distribution of and possession with intent to distribute 50 grams or more of methamphetamine; aiding and abetting each provide for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of distribution of and possession with intent to distribute 40 grams or more of fentanyl; aiding and abetting provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. U.S. Attorney Rollins, FBI SAC Bonavolonta and Commissioner Mici made the announcement today. Assistant U.S. Attorneys Alathea E. Porter and Charles Dell’Anno of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case. The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Sacramento Attorney and Filer of ADA Lawsuits Sentenced for Filing False Tax Return

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Scott Norris Johnson, a Sacramento attorney and filer of thousands of disability discrimination lawsuits, was sentenced today to 18 months home detention as part of a 30-month term of probation, and ordered to pay $250,000 in restitution and a $50,000 fine, for filing a false tax return on which he underreported the income he earned from many of those lawsuits, U.S. Attorney Phillip A. Talbert and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced. The sentence included the terms that while on probation Johnson may not reapply for reinstatement to the California Bar, and that during the period of home detention he may not leave home for the purpose of seeking violations of the ADA or Unruh Act in order to file suits in federal or state courts. According to court documents and statements made in court, Johnson, 61, of Carmichael, owned and operated Disabled Access Prevents Injury Inc. (DAPI), a legal services corporation. First using DAPI, and later using a law firm, Johnson filed thousands of lawsuits in the Eastern District of California and elsewhere under the Americans with Disabilities Act of 1990 and related California statutes, naming himself as the plaintiff. Under the Small Business Job Protection Act of 1996, payments related to lawsuit settlements or awards are taxable unless paid on account of personal physical injury or physical sickness. Johnson, who worked as an attorney at the IRS earlier in his career, was required to report the taxable portion of the lawsuit settlements and awards he received. He nonetheless intentionally underreported this income on his 2012, 2013, and 2014 tax returns. By understating the lawsuit settlements and awards, Johnson and DAPI paid little to no income tax for tax years 2012, 2013 and 2014. Johnson caused a loss to the IRS of more than $250,000. This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Katherine T. Lydon and Assistant Chief Matthew J. Kluge of the Tax Division prosecuted the case .


title: Former Executives of Outcome Health Convicted in $1B Corporate Fraud Scheme

body_text: A federal jury convicted three former executives of Outcome Health, a Chicago-based health technology start-up company, for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 billion in fraudulently obtained funds. The individuals convicted by jury verdict today were: Rishi Shah, 37, the co-founder and former CEO of Outcome Health (Outcome), which was founded in 2006 and known as Context Media prior to January 2017; Shradha Agarwal, 37, the former president of Outcome, who was described as a co-founder; and Brad Purdy, 33, the former chief operating officer and chief financial officer. Outcome installed television screens and tablets in doctors’ offices around the United States and then sold advertising space on those devices to clients, most of whom were pharmaceutical companies. According to evidence presented at trial, Shah, Agarwal, and Purdy sold advertising inventory the company did not have to Outcome’s clients, then under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. Shah, Agarwal, and Purdy lied or caused others to lie to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts. Purdy and others at Outcome also inflated metrics that purported to show how frequently patients engaged with Outcome’s tablets installed in doctors’ offices. According to the trial evidence, the scheme targeting Outcome’s clients began in 2011, lasted until 2017, and resulted in at least $45 million of overbilled advertising services. Shah, Agarwal, and Purdy were also convicted of defrauding Outcome’s lenders and investors. The under-delivery to Outcome’s advertising clients resulted in a material overstatement of Outcome’s revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because Purdy caused others to fabricate data to conceal the under-deliveries from the auditor. Shah, Agarwal, and Purdy then used the inflated revenue figures in Outcome’s 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017. Shah, Agarwal, and Purdy lied to investors and lenders to conceal their ongoing under-delivery of advertising campaigns for clients. Shah and Purdy also misrepresented to investors the efficacy of Outcome’s advertising campaigns by concealing the fact that it had failed to meet return-on-investment commitments to clients. The $110 million debt financing resulted in a $30.2 million dividend to Shah and a $7.5 million dividend to Agarwal; the $487.5 million in equity financing resulted in a $225 million dividend to Shah and Agarwal. Three other former employees of Outcome pleaded guilty prior to trial. Ashik Desai, the former chief growth officer pleaded guilty to one count of wire fraud; and Kathryn Choi, a former senior analyst, and Oliver Han, a former analyst, both pleaded guilty to conspiracy to commit wire fraud. Desai, Choi, and Han will be sentenced at a date to be determined. Shah was convicted of five counts of mail fraud, 10 counts of wire fraud, two counts of bank fraud, and two counts of money laundering. Agarwal was convicted of five counts of mail fraud, eight counts of wire fraud, and two counts of bank fraud. Purdy was convicted on five counts of mail fraud, five counts of wire fraud, two counts of bank fraud, and one count of false statements to a financial institution. The defendants face a maximum penalty of 30 years in prison for each count of bank fraud and 20 years in prison for each count of wire fraud and mail fraud. Purdy faces a maximum penalty of 30 years in prison for the count of false statements to a financial institution. Shah faces a maximum penalty of 10 years in prison for each count of money laundering. A sentencing hearing will be scheduled at a date to be determined. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Assistant Inspector General for Investigations Shimon Richmond of the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation. Assistant Chiefs William E. Johnston and Kyle C. Hankey of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Matthew F. Madden and Saurish Appleby-Bhattacharjee for the Northern District of Illinois are prosecuting the case. “The defendants’ vast scheme damaged the clients, investors, and lenders who supported their business. Although they sought to hide the fraud by silencing whistleblowers and duping auditors, the jury today rightly held the defendants accountable for the losses they caused, which total hundreds of millions of dollars,” said Acting U.S. Attorney Pasqual. “Today’s verdicts demonstrate that this Office and its law enforcement partners will work tirelessly and dedicate the resources necessary to deliver justice for the victims of complex fraud schemes.” “The scope of this fraud scheme is staggering, with almost $1 billion in victim losses. Today’s conviction is a fitting reminder that deceptive and illegal business practices have very real consequences" said Special Agent-in-Charge Wheeler. "Today's conviction holds these defendants accountable for deceiving Outcome Health's clients, and fraudulently obtaining approximately $1 billion from its lenders and investors," said Assistant Inspector General Richmond. "The FDIC-OIG remains committed to working with our law enforcement partners to investigate and bring to justice those who harm lenders, investors, and clients by committing such fraudulent acts."


title: Richmond man convicted for making illegal referrals

body_text: HOUSTON – A federal jury has returned a guilty verdict against a 44-year-old health care marketer in a conspiracy to pay and receive health care kickbacks, announced U.S. Attorney Alamdar S. Hamdani. The jury deliberated for 15 minutes following a two-day trial before finding Patrick Osemwengie, Richmond, guilty of a one-count conspiracy to pay and receive kickbacks. “Health care peddlers like Osemwengie prey on the elderly and are part of the larger health care fraud problem,” said Hamdani. “Illegal kickbacks and related crimes damages Medicare’s ability to help those that truly need it. We will continue to prosecute these individuals and work to preserve the system designed to protect and insure our nations’ most vulnerable citizens.” At trial, the jury heard from witnesses from Ebra Home Health who testified Osemwengie would sell them Medicare patients. He charged $500 a kickback for an initial home health certification and a $250 kickback for a recertification. A Medicare representative testified that Medicare prohibits payment of kickbacks for home health services. The jury also heard from an elderly Medicare beneficiary who explained how Osemwengie paid him money to sign up for home health care companies including Ebra Home Health. He testified he was not able to get home health when he actually needed it because of the past fraudulent billings Osemwengie helped facilitate. Evidence revealed Osemwengie received $13,000 in kickback payments from Ebra Health Care Services. The defense attempted to convince the jury Osemwengie was being paid $50 an hour for passing out flyers and not that the money was a result of kickbacks. However, the owner of Ebra Home Health refuted that assertion at trial and testified Osemwengie was paid per patient, in violation of the anti-kickback statute. The jury did not believe the defense and found Osemwengie guilty as charged. U.S. District Judge Sim Lake presided over the trial and has set sentencing for July 7. At that time, Osemwengie faces up to five years in federal prison as well as a possible $250,000 maximum fine. Osemwengie was permitted to remain on bond pending that hearing. The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General and FBI conducted the investigation. Special Assistant U.S. Attorney Abdul Farukhi and Assistant U.S. Attorney Christian Latham prosecuted the case.


title: Sophisticated Sinaloa Cartel Money Laundering Organization Dismantled

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – April 11, 2023 SAN DIEGO – A two-year investigation by FBI and DEA has resulted in the indictment of twelve people, the takedown of a transnational criminal organization that allegedly laundered at least $16.5 million for the Sinaloa cartel, and the rescue of two victims of an extortion plot. Defendant Cristian Amaya Nava was the first to be sentenced in federal court yesterday to 60 months in prison in connection with the extortion and money laundering charges. In his plea agreement, he admitted that in February of 2021, he forced two victims to withdraw funds from their own accounts to repay a drug debt, under threat of harm to themselves and their families. In addition, he admitted that he laundered over $2.4 million for the cartel. According to the superseding indictment, an investigation was initiated in the fall of 2020 after FBI agents identified a complex money laundering organization allegedly led by Enrique Daan Esparragoza Rosas of Culiacan, Sinaloa, Mexico. The indictment said Esparragoza’s organization used a network of shell companies incorporated in Wyoming to launder millions of dollars in cash belonging to the Sinaloa Cartel. The shell companies and a sophisticated financial network were created and overseen by Luis Ramirez, a U.S. citizen residing in Mesa, Arizona, the indictment said. Ramirez and Esparragoza allegedly directed and facilitated employees of the money laundering organization to travel to cities throughout the United States to pick up bulk cash belonging to narcotics traffickers. The employees picked up the bulk cash in Chicago, Omaha, Boston, New York City, Baltimore, Charlotte, Philadelphia and other cities. Narcotics traffickers delivered bulk cash in amounts of up to $200,000 to the employees in hotel rooms and parking lots. Following the delivery of the illegal money, the criminal organization laundered the funds through the shell companies and then transferred the laundered funds to bank accounts in Mexico. In total, dozens of bank accounts used by the organization were targeted, resulting in the seizure of $1 million from those accounts plus about $197,430 in bulk cash. In November 2020, the FBI worked with the DEA Chicago Field Office to conduct an operation using information from the investigation which resulted in the seizure of 368 pounds of crystal methamphetamine and 10 kilograms of heroin, allegedly from defendants Sugey Caro Salazar and Idsel Valenzuela in LaPorte, Indiana. They are accused of delivering cash to an employee of the money laundering organization. According to the indictment, funds laundered by the organization were used to purchase a Volvo tractor-trailer that FBI agents seized near Las Vegas; and aircraft and aircraft engines for export to Mexico, among other things. In the extortion plot, the FBI’s efforts resulted in a successful rescue of two victims who were being extorted by the money laundering organization in February 2021. Prior to the extortion, one of the victims, an employee of the money laundering organization, began stealing illicit funds from a bank account that he controlled for the organization. Under pressure from the organization to return the stolen funds, the victim and his family member concocted an unsuccessful scheme to repay the debt: He stole an additional $30,000 from the money laundering organization to purchase a tortilla machine, intending to resell it for a profit. The pair owed a substantial debt to the money laundering organization. According to the indictment, when Esparragoza and Ramirez learned of the theft, they conspired to threaten and extort the pair to repay the funds. Esparragoza sent defendant Amaya Nava to threaten the men and their families. Amaya Nava has admitted that he drove the two men around Imperial and San Diego County to collect money from bank accounts they controlled. According to admissions in Amaya Nava’s plea agreement, Esparragoza also directly threatened the men and their families during several phone conversations that day, telling them that two truckloads of men from Tijuana would “take care of them” if they did anything stupid. The FBI learned of the ongoing extortion after being alerted by an informant and began tracking the victims and Amaya Nava’s movements. Amaya Nava drove with the men from El Centro to San Diego in an effort to collect additional money from an associate of one of the victims. FBI agents coordinated with the National City Police Department to conduct a traffic stop wherein Amaya Nava was arrested and the two victims were rescued. To date the investigation has resulted in the arrests of Amaya Nava and Luis Ramirez, who were charged with extortion and money laundering charges; Ivan Correia Zamora, Ricardo Torres, Kimberlly Reyes, Hector Francisco Vizcaino Moreno, Luis Armando Avila, and Cheliann Rivera Vazquez who are facing money laundering charges; Melvin Rosado (aka) Cristian Cruz Polanco has been arrested on money laundering and aggravated identity theft charges. Sugey Caro Salazar and Idsel Valenzuela have been arrested and charged with narcotics trafficking and money laundering. Enrique Daan Esparragoza Rosas has been charged with money laundering and extortion offenses. Enrique Daan Esparragoza Rosas has been charged with money laundering and extortion offenses. All but two defendants are pending trial. Enrique Daan Esparragoza Rosas and Ivan Correia are fugitives. “Mexican drug cartels cannot succeed without money launderers,” said U.S. Attorney Randy Grossman. “Our office will prosecute not only those who traffic in drugs but also those who enable the drug traffickers through sophisticated shell corporations and multiple bank accounts.” Grossman thanked the prosecution team and the FBI for their excellent work on this case. “This operation highlights how the FBI and our law enforcement partners are joining efforts to dismantle organized, violent, criminal enterprises,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “These enterprises create a space for cartels to exist and we will spare no resources when it comes to addressing the criminals who enable the flow of poison to our communities.” “Drug cartels exist to profit from the sale of poison to our communities,” said Special Agent in Charge Shelly Howe. “The DEA and our law enforcement partners will continue to target and dismantle money laundering organizations operating in the Imperial Valley that facilitate the movement of drug proceeds from the United States to Mexico-based drug cartels.” *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty. DEFENDANTS Case Number 22cr2185-BAS Enrique Daan Esparragoza Rosas Age: 37 Culiacan, Sinaloa, Mexico Luis Ramirez Age: 41 Mesa, Arizona Ricardo Torres Age: 30 El Centro, California Kimberlly Reyes Age: 24 Mexicali, Mexico Hector Francisco Vizcaino Moreno Age: 33 Calexico, California Cristian Jose Polanco Age: 52 Philadelphia, Pennsylvania Cheliann Rivera Vazquez Age: 29 Philadelphia, Pennsylvania Luis Armando Avila Age: 22 Ontario, CA SUMMARY OF CHARGES Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h) Maximum penalty: Twenty years in prison and $500,000 fine Esparragoza Rosas and Luis Ramirez - Only Hobbs Act Extortion - Title 18, U.S.C., Section 1951(a) Maximum penalty: Twenty years in prison and $250,000 fine Cristian Jose Polanco – Only Title 18, U.S.C., Section 1028A(a)(1) – Aggravated Identity Theft Maximum penalty: Two years in prison and $250,000 fine Case Number 21cr1693 Cristian Amaya Nava Age: 37 Calexico, CA SUMMARY OF CHARGES Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h) Maximum penalty: Twenty years in prison and $500,000 fine Hobbs Act Extortion - Title 18, U.S.C., Section 1951(a) Maximum penalty: Twenty years in prison and $250,000 fine Case Number 22cr1477 Ivan Correia Zamora Age: 37 San Diego, California SUMMARY OF CHARGES Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h) Maximum penalty: Twenty years in prison and $500,000 fine Case Number 22cr0612 and 22cr0776 Sugey Caro-Salazar Age: 46 La Porte, Indiana Idsel Valenzuela Age: 27 La Porte, Indiana SUMMARY OF CHARGES Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h) Maximum penalty: Twenty years in prison and $500,000 fine Conspiracy to Distribute Methamphetamine – Title 21, U.S.C., Section 846 and 841(a)(1) Maximum penalty: Life in prison; mandatory minimum 10 years in prison and $10,000,000 fine AGENCIES Federal Bureau of Investigation Drug Enforcement Administration This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.


title: Syracuse Man Sentenced to 138 Months for Distributing Fentanyl and Unlawfully Carrying a Firearm

component: USAO - New York, Northern

body_text: SYRACUSE, NEW YORK – Maurice Owens, age 22, of Syracuse, was sentenced today to serve 138 months in prison following his conviction for conspiring to distribute and possess with intent to distribute fentanyl, distributing and possessing with intent to distribute fentanyl, and using and carrying a firearm while drug-trafficking announced United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). During his prior guilty plea, Owens admitted that he sold fentanyl to a customer on December 2, 2020, and December 7, 2020. On December 10, 2020, Owens was sitting in a car in a parking lot near where he previously had sold fentanyl. He saw police officers approaching, exited the car, and fled while carrying a loaded “ghost gun” that did not bear any serial number. Owens also had in his possession at the time three glassine envelopes containing fentanyl. Owens previously was convicted of a felony offense in state court and was prohibited under state law from possessing the gun. From approximately December 10, 2020, until February 27, 2021, Owens was detained in a local jail. While incarcerated, Owens participated in multiple calls in which he arranged for associates to supply heroin and fentanyl to the customers to whom Owens no longer could sell because he was in jail. Owens received a share of the proceeds from these sales. Owens and his associates sold at least 81 grams of fentanyl. United States District Judge Glenn T. Suddaby also sentenced Owens to a four-year term of supervised release to begin after he serves his term of imprisonment and ordered him to pay a forfeiture judgment in the amount of $6,200, which represented the proceeds from drug sales. This case was investigated by ATF and the Syracuse Police Department Criminal Intelligence Section. Assistant U.S. Attorney Thomas Sutcliffe and former Assistant United States Attorney Andrew Beaty prosecuted this case as 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: Former Champaign, Illinois, Pastor Sentenced to 10 Months of Imprisonment for Misapplying Federal Funds and Bankruptcy Fraud

component: Department of Justice

body_text: URBANA, Ill. – A Champaign, Illinois, man, Lekevie C. Johnson, formerly of the 2000 block of Clayton Boulevard, was sentenced on April 10, 2023, to 10 months of imprisonment and ordered to pay $59,358.90 restitution following his December 2022 guilty pleas to financial crimes including federal program misapplication, student loan misapplication, and false statement in bankruptcy. Johnson was formerly the pastor of Mount Calvary Missionary Baptist Church, previously known as Jericho Missionary Baptist Church, on Bloomington Road in Champaign, Illinois. Johnson also served for years as the head football coach at Centennial High School in Champaign. Between 2012 and 2019, Johnson operated a not-for-profit corporation, Life Line Champaign, Inc., which received federal grant funds from the United States Department of Housing and Urban Development, through the City of Champaign, to provide summer enrichment programs for low-income students in the Garden Hills neighborhood. Johnson previously admitted misapplying $25,700.74 of HUD program grant funds for his own benefit, including by making numerous ATM cash withdrawals at various casinos. Johnson also admitted that he had obtained federal student loans between 2017 and 2019 to attend Liberty University’s online Master of Arts program. Prior to receiving the loans, Johnson certified that he would use the loans only for authorized educational expenses. Nonetheless, Johnson used $31,291.62 of the loans for various non-educational expenses, including to gamble at casinos. Finally, Johnson admitted to committing bankruptcy fraud. On January 31, 2020, Johnson and his wife filed for Chapter 7 bankruptcy in the Central District of Illinois. In his petition, Johnson claimed that he received only $42,900 from his church in 2019, even though he received tens of thousands of additional monies from the church that year. On March 5, 2020, Johnson testified under oath at a bankruptcy hearing that he had disclosed all the payments he received from the church and had no control over the church’s finances. In fact, Johnson controlled the church’s finances and had received tens of thousands of dollars in payments from the church that he had not disclosed in bankruptcy. In sentencing Johnson to 10 months of imprisonment and ordering full restitution to both HUD and the U.S. Department of Education, United States District Judge Michael M. Mihm found that, although Johnson suffered from a gambling addiction, his crimes were the result of his voluntary choices and hurt many people, including the disadvantaged children in the Garden Hills neighborhood who did not benefit as intended from the federal grant. Judge Mihm ordered Johnson to report to the federal Bureau of Prisons to begin serving his sentence on June 6, 2023. After pleading guilty to these offenses, Johnson left Champaign and relocated to the Dallas, Texas, area. “Abuse of the bankruptcy system by making false statements, utilizing federal program monies for gambling purposes, and concealing those acts strikes at the very core of the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, United States Trustee for Indiana, Central and Southern Illinois (Region 10). “Today’s sentencing sends a strong message that these actions will not be tolerated. I am grateful to U.S. Attorney Harris and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.” The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office; Department of Housing and Urban Development—Office of Inspector General; and the Department of Education – Office of Inspector General in collaboration with the Central District of Illinois Bankruptcy Fraud Working Group coordinated by the United States Trustee for Central and Southern Illinois and Indiana (Region 10). The bankruptcy fraud charge was referred for criminal prosecution by the United States Trustee for Region 10. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria, Illinois, and South Bend, Indiana. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.


title: Champaign, Illinois, Man Sentenced to 72 months in Prison for Possession of a Firearm as a Felon

body_text: URBANA, Ill. – A Champaign, Illinois, man, Prentiss Jackson, 40, of the 3300 block of Stoneway Court, was sentenced on April 10, 2023, to 72 months’ imprisonment, to be followed by a three-year term of supervised release, for possessing a firearm as a felon. At the sentencing hearing, the government presented evidence that Jackson, a felon on supervised release for a 2010 federal narcotics conviction, possessed a Ruger handgun. Officers from the Urbana Police Department executed a traffic stop on Jackson’s car in June 2022 and eventually asked him to exit the vehicle after he handed an officer marijuana that had been inside it. After exiting the car, Jackson ran from the stop, producing a Ruger handgun during his flight. After he was apprehended, police found MDMA (ecstasy) and a large amount of cash on Jackson’s person. Also at the hearing, U.S. District Judge Colins S. Bruce found that Jackson possessed the firearm in connection with a felony drug offense. Judge Bruce further ordered that the imposed sentence of 72 months’ imprisonment run consecutive to any sentence Jackson receives for violating his conditions of supervised release in relation to his prior federal narcotics conviction. Jackson previously entered a guilty plea to the single-count indictment in this case. Jackson is scheduled to appear in front of U.S. District Judge James E. Shadid on April 13, 2023, at the federal courthouse in Peoria, Illinois, in connection with the supervised release violation. He faces up to an additional five-year term of imprisonment. The Urbana Police Department investigated the case. Assistant U.S. Attorney William J. Lynch represented the government in the prosecution in cooperation with the Champaign County State’s Attorney’s Office.


title: Government Contractors Indicted in San Antonio for Wire Fraud, Money Laundering

component: USAO - Texas, Western

body_text: SAN ANTONIO – A federal grand jury in San Antonio returned an indictment last week charging four members of a San Antonio family with conspiracy to commit wire fraud and money laundering. According to court documents, Kenneth Flores, Christopher Flores, Antonio Flores Jr., and Irma Flores, are alleged to have conspired together to defraud the United States by eliminating competition and fixing contract awards and prices on Army contracts for the housekeeping and janitorial services at Army Hospitals and Medical Centers. The alleged scheme involved a corrupt partnership between the Floreses and co-conspirator government employees Karisa Waysepappy Kelley and John Jordan “Chip” Mathes, involving millions of dollars in work on Army healthcare housekeeping and janitorial services contracts in return for bribes and kickbacks, eliminating the Flores’ competition in the process. The defendants made their initial court appearances Monday, April 10, before U.S. Magistrate Judge Richard B. Farrer of the U.S. District Court for the Western District of Texas. The four defendants are each charged with one count of conspiracy, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. If convicted on all charges, they each face a maximum penalty of 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Floreses are currently released on a $50,000 bond each. An arraignment hearing is scheduled for April 19. U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. The Defense Criminal Investigative Service; Department of the Army Criminal Investigation Division; U.S. General Services Administration Office of Inspector General; and IRS Criminal Investigation are investigating the case. Assistant U.S. Attorney William Lewis is prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Brothers Sentenced for $1.6M COVID-19 Fraud Scheme

component: Criminal Division

body_text: Two men were sentenced yesterday for their participation in a COVID-19 fraud scheme, which involved fraudulent applications for $1.6 million in loans through the Paycheck Protection Program (PPP). Dumarsais Blaise Jr., 45, of Stonecrest, Georgia, was sentenced to two years and three months in prison. His brother, Alexander Blaise, 41, of Plantation, Florida, was sentenced to two years and six months in prison. According to court documents, Dumarsais Blaise and Alexander Blaise worked together to submit fraudulent PPP applications. Dumarsais Blaise used his expertise as a tax preparer to create fake tax documents that were submitted in support of the fraudulent applications. The conspiracy involved fabricating information about three purported companies, two of which did not exist. For the third company, the brothers falsely inflated the number of employees and payroll costs, claiming the company employed 41 people when in fact it employed only one person. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Atlanta Region, and Special Agent in Charge Jeffery Veltri of the FBI Miami Field Office made the announcement. The FDIC-OIG and FBI Miami Field Office investigated the case. Trial Attorney Edward Emokpae of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kiran Bhat for the Southern District of Florida prosecuted the case. The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud .


title: Urologist Charged With Sexually Abusing Patients

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of a four-count Indictment charging DARIUS A. PADUCH, a New York–area urologist, with inducement of a person to travel to engage in unlawful sexual activity and inducement of a minor to engage in unlawful sexual activity for his yearslong sexual abuse of two victims who were his patients and who were minors during part of the period of abuse. PADUCH was arrested this morning and will be presented before U.S. Magistrate Judge Sarah L. Cave this afternoon. The case has been assigned to U.S. District Judge Ronnie Abrams. U.S. Attorney Damian Williams said: “As alleged, for years, Darius Paduch abused the trust of patients, including minors, who saw him for sensitive medical problems. Paduch took advantage of his victims for his own deviant satisfaction. Thanks to this morning’s arrest, Paduch’s abuse of his patients ends today.” FBI Assistant Director in Charge Michael J. Driscoll said: “The indictment unsealed today against Paduch, a New York-area doctor, details alleged systemic abuse of a number of patients, to include minors, over the course of several years. Sexual abuse of anyone at any age for any reason is a horrific crime that carries strict penalties. If you have been victimized by Darius Paduch in any way or have any additional information about his alleged illegal behavior, please call us at 1-800-CALL-FBI, or reach out to us at tips.fbi.gov.” According to the allegations in the Indictment unsealed today in Manhattan federal court: [1] Over the course of several years, PADUCH sexually abused multiple male patients, including minor male patients, while conducting purported urological examinations in his capacity as a medical doctor employed by a prestigious medical institution in New York, New York (“Medical Institution-1”). From at least in or about 2015 through at least in or about 2019, PADUCH, while working as a urologist, enticed and induced multiple victims to travel to his medical offices at Medical Institution-1, so PADUCH could, among other things, sexually abuse the victims. In or about 2019, PADUCH began practicing at a different hospital located in Long Island, New York (“Medical Institution-2”), where he continued to sexually abuse patients. PADUCH used his position as a urologist at prominent medical institutions in New York to make or attempt to make the victims believe that the sexual abuse he inflicted on them was medically necessary and appropriate, when, in fact, it was not. PADUCH often directed the victims to schedule follow-up visits, and he instructed victims to return to see him again. As a result, some of the victims attended many appointments with PADUCH over the course of multiple years, at which PADUCH repeatedly abused them. After appointments, PADUCH sent certain victims — including minor victims — text messages from his personal cellphone. In those messages, he made inappropriate and sexual comments and jokes, and he directed the victims to schedule follow-up appointments or to visit his office after regular business hours. As alleged, PADUCH induced two victims to travel to New York, New York, from or through another state to engage in unlawful sexual activity — in other words, his abuse of the victims. PADUCH also used a telephone and other means of interstate commerce to induce two minor victims to engage in the unlawful sexual activity. * * * PADUCH, 55, of North Bergen, New Jersey, is charged with inducement of a victim (“Minor Victim-1”) to travel to engage in unlawful sexual activity, which carries a maximum sentence of 20 years in prison; inducement of a victim (“Minor Victim-2”) to travel to engage in unlawful sexual activity, which carries a maximum sentence of 20 years in prison; inducement of Minor Victim-1 to engage in unlawful sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and inducement of Minor Victim-2 to engage in unlawful sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The minimum and 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 FBI. The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Marguerite B. Colson, Elizabeth A. Espinosa, and Jun Xiang are in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.


title: Former Investment Banker and Registered Broker Arrested for Operating Cryptocurrency Investment Fraud Scheme

body_text: A former investment banker, who was a registered broker with the Financial Industry Regulatory Authority, was arrested yesterday in Brooklyn, New York, on criminal charges related to his alleged role in operating a cryptocurrency investment fraud scheme. According to court documents, Rashawn Russell, 27, of Brooklyn, New York, allegedly engaged in a scheme to defraud multiple investors by inducing them to invest with him based on false promises that, among other things, he would use their funds for cryptocurrency investments and that the investors would earn large – and sometimes guaranteed – returns from those investments. Russell allegedly misappropriated much of the investors’ assets and used them for his personal benefit, to gamble, and to repay other investors. In addition, the indictment alleges that Russell repeatedly failed to repay investors’ principal investments and failed to provide investors with promised rates of return. After certain investors requested to be repaid their investments, Russell also allegedly falsely represented that he had wired them money. Russell is charged with one count of wire fraud. If convicted, he faces a maximum penalty of 20 years in prison. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement. The USPIS is investigating the case. Trial Attorney Kyle Crawford and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Drew Rolle for the Eastern District of New York are prosecuting the case. If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Methamphetamine Dealer Sentenced to 10 Years in Federal Prison

component: Drug Enforcement Administration (DEA)

body_text: EAST ST. LOUIS, Ill. – In a U.S. District courtroom on Monday, a federal judge sentenced a Cahokia Heights man to 120 months in prison after he admitted to distributing methamphetamine in 2021. Carlos M. Johnson, 49, received a concurrent sentence of 87 months’ imprisonment for a separate possession with intent to distribute a controlled substance charge, and another concurrent sentence of 87 months’ imprisonment for being a felon in possession of a firearm. He was fined $300 and must also pay $300 in special assessments. Following his release from federal prison, Johnson must complete five years of supervised release. “Drug dealers selling harmful and dangerously addictive drugs gamble with their freedom by the decade,” said U.S. Attorney Rachelle Aud Crowe. “Federal law enforcement agents will work alongside state and local partners to pursue drug distributors wherever they are located and bring them to justice.” According to court documents, Johnson’s offenses occurred in January 2021. Based on evidence of drug dealing activity, federal agents executed a search warrant of Johnson’s home. As a result, federal agents seized six different kinds of controlled substances and multiple firearms from Johnson’s home. A federal grand jury indicted Johnson on March 22, 2022, for distribution of a controlled substance, possession with intent to distribute a controlled substance, and felon in possession of a firearm. Johnson pled guilty on Dec. 1, 2022. The Drug Enforcement Administration conducted the investigation, and Assistant U.S. Attorney John Trippi prosecuted the case. This case was 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.