title: 70 Current And Former NYCHA Employees Charged With Bribery And Extortion Offenses

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”); Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Rae Oliver Davis, the Inspector General of the U.S. Department of Housing and Urban Development, Office of Inspector General (“HUD OIG”); and Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), announced the unsealing of bribery and extortion charges against 70 current and former employees of the New York City Housing Authority (“NYCHA”). 66 of the 70 defendants were arrested this morning in New York, New Jersey, Connecticut, and North Carolina. Defendants who were arrested in the New York area are scheduled to appear before U.S. Magistrate Judges Stewart D. Aaron, Sarah L. Cave, Valerie Figueredo, Sarah Netburn, Katharine H. Parker, Gary Stein, and Ona T. Wang in Manhattan federal court later today. U.S. Attorney Damian Williams said: “Instead of acting in the interests of NYCHA residents, the City of New York, or taxpayers, the 70 defendants charged today allegedly used their jobs at NYCHA to line their own pockets. This action is the largest single-day bribery takedown in the history of the Justice Department. NYCHA residents deserve better. My Office is firmly committed to cleaning up the corruption that has plagued NYCHA for far too long so that its residents can be served with integrity and have the high-quality affordable homes that they deserve. The culture of corruption at NYCHA ends today." Attorney General Merrick B. Garland said: “The Justice Department will prosecute to the fullest extent of the law those who abuse their positions in public service in order to enrich themselves. The crimes alleged in this case are serious violations of the public trust, and I am grateful to the agents and our partners across government who worked on this case, and to the prosecutors in the Southern District of New York for their tireless efforts to root out corruption.” DOI Commissioner Jocelyn E. Strauber said: “As charged, these 70 current and former NYCHA supervisors and other staff used their positions of public trust and responsibility to pocket bribes in exchange for doling out no-bid contracts. The extensive bribery and extortion alleged here calls for significant reforms to NYCHA’s no-bid contracting process, which DOI has recommended and NYCHA has accepted. I thank the U.S. Attorney’s Office for the Southern District of New York and our federal law enforcement partners for their commitment to protect scarce public resources intended to maintain public housing, and to hold accountable public servants who abuse their authority, and NYCHA’s senior leadership for its cooperation in this important investigation.” HSI Special Agent in Charge Ivan J. Arvelo said: “These 70 defendants are accused of demanding kickbacks and bribes for access to no-bid contracts and lucrative, under-the-table deals. Make no mistake, this alleged pervasive corruption had the biggest impact on NYCHA residents themselves, who may have been cheated out of better services and programs. I commend the outstanding work of HSI New York’s Document and Benefit Fraud Task Force for today’s historic operation. As one of the largest investigative agencies, the public can rest assured: Homeland Security Investigations will pursue all avenues of justice for the people of this great city.” HUD OIG Inspector General Rae Oliver Davis said: “The pay-to-play bribery schemes alleged in the complaints unsealed today waste millions of dollars and risk residents staying in unacceptable living conditions. The alleged conduct identified during this investigation harms the effectiveness of housing programs that support more than 200,000 residents. It also poses a significant risk to the integrity of the HUD rental assistance programs that support housing assistance in New York City and erodes the trust of NYCHA residents in HUD’s programs. We will continue our work with the U.S. Attorney’s Office and our law enforcement partners to prevent and detect these and other schemes.” DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of our mission is to investigate corruption and fraud involving matters within the jurisdiction of the Office of Inspector General. We are committed to working closely with our law enforcement partners to investigate those who exploit governmental programs and the American workers.” According to the allegations in the Complaints and publicly filed documents in these cases: [1] NYCHA is the largest public housing authority in the country, providing housing to 1 in 17 New Yorkers in 335 developments across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development every year. When repairs or construction work require the use of outside contractors, services must typically be purchased via a bidding process. However, at all times relevant to the Complaints, when the value of a contract was under a certain threshold (up to $10,000), designated staff at NYCHA developments could hire a contractor of their choosing without soliciting multiple bids. This “no-bid” process was faster than the general NYCHA procurement process, and selection of the contractor required approval of only the designated staff at the development where the work was to be performed. The defendants, all of whom were NYCHA employees during the time of the relevant conduct, demanded and received cash in exchange for NYCHA contracts by either requiring contractors to pay up front in order to be awarded the contracts or requiring payment after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so the contractor could receive payment from NYCHA. As alleged, the defendants typically demanded approximately 10% to 20% of the contract value—between $500 and $2,000 depending on the size of the contract—but some defendants demanded even higher amounts. In total, these defendants demanded over $2 million in corrupt payments from contractors in exchange for awarding over $13 million worth of no-bid contracts. The map below shows the developments affected by the alleged conduct: If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact OIGNYCHA@doi.nyc.gov or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov. * * * The names of the defendants, the charges against them, their ages, and their cities and states of residence are set forth below. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Williams praised the outstanding investigative work of DOI, HSI, HUD OIG, and DOL-OIG, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the special agents and task force officers of the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams thanked the New York City Police Department and the U.S. Marshals Service for their assistance with today’s arrest operations. Mr. Williams also expressed appreciation for the cooperation and support of NYCHA’s senior executive leadership and thanked NYCHA Federal Monitor Bart Schwartz for his assistance with the investigation. These prosecutions are part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. These cases are being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jerry J. Fang, Jacob R. Fiddelman, Meredith Foster, Catherine Ghosh, and Sheb Swett are in charge of the prosecutions. The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty. Defendant Age Residence Charges and Potential Maximum Prison Term James Baez 58 years Valley Stream, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Selwyn Barley 61 years Brooklyn, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Gwendolyn Bell 38 years Baldwin, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Nymiah Branch 44 years Elmont, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Marc Buckner 54 years Stroudsburg, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Patrick Butler 58 years Brooklyn, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Roberto Cartagena 48 years Union City, NJ Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Vernon Chambers 45 years Brooklyn, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Rigoberto Charriez, a/k/a “Ricky” 34 years Toms River, NJ Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Hector Colon 45 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Michael Davis 54 years Groton, CT Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Victor De Los Santos 54 years Bushkill, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Mauricio Escobar 55 years East Elmhurst, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Jose Espinal 57 years Howard Beach, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Joseph Fuller 42 years Brooklyn, NY Conspiracy to Solicit and Receive a Bribe: 5 years Solicitation and Receipt of a Bribe: 10 years Conspiracy to Commit Extortion Under Color of Official Right: 20 years Extortion Under Color of Official Right: 20 years Manuel Garcia 59 years Lecanto, FL Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Tuesdai Gaskin 57 years Staten Island, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Corey Gilmore 45 years Garnerville, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Lateisha Harley 48 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Joy Harris 48 years Bushkill, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Jose Hernandez 57 years New York, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Veronica Hollman 47 years Brooklyn, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Deshon Hopkins 47 years Bethlehem, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Nena Huntley 36 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Michael Johnson 58 years Staten Island, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years George Kemp 49 years Irvington, NJ Conspiracy to Solicit and Receive a Bribe: 5 years Solicitation and Receipt of a Bribe: 10 years Conspiracy to Commit Extortion Under Color of Official Right: 20 years Extortion Under Color of Official Right: 20 years Jaime Lan, a/k/a “Jimmy” 57 years Stewartsville, NJ Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Dexter Lino 51 years Rockaway Park, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Nirmal Lorick 58 years South Richmond Hill, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Tara Lucas 50 years Linden, NJ Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Vincent Machado, a/k/a Vincent Arcelay 30 years New York, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Marlon Mackey 51 years Jamaica, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Danny Matos 48 years Effort, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Nakia McCoy 49 years Brooklyn, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Erik McCreary 55 years Far Rockaway, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Henry McPhatter 44 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Joacim Mendez 47 years Milford, CT Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Juan Mendez 52 years Stroudsburg, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Juan Mercado 49 years West Babylon, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years James Miller 55 years Stroudsburg, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Daniel Muniz 64 years Long Island City, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Denise Newby-Bovian 54 years New York, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Alexis Nieves 41 years Stratford, CT Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Raymond Nunez 56 years Glendale, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Evelyn Ortiz 55 years Freeport, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Brett Owens 49 years New York, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Orlando Pardo 56 years Maywood, NJ Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Jorge Perez 54 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Curtis Priester 58 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Eddie Quetell 57 years Philadelphia, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Carmen Rivera 53 years Long Pond, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Jaime Rivera 50 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years John Rivera 56 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Herbert Rosa 45 years New York, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Dwarka Rupnarain 63 years Middletown, NJ Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Chrisie Salter 46 years Brooklyn, NY Conspiracy to Solicit and Receive a Bribe: 5 years Solicitation and Receipt of a Bribe: 10 years Conspiracy to Commit Extortion Under Color of Official Right: 20 years Extortion Under Color of Official Right: 20 years Clarence Samuel 53 years Irvington, NJ Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Tanisha Sands 51 years Brooklyn, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Carolyn Scott 58 years East Stroudsburg, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Garth Small 55 years Mount Vernon, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Charles Starks 57 years Elmont, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Elizabeth Tapia 54 years Pocono Summit, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Alex Tolozano 57 years Maywood, NJ Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Luis Torres 38 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Segundo Torres 56 years Blakeslee, PA Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Frankie Villanueva 51 years Bronx, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Lindsay Wade 53 years Brooklyn, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Angela Williams 64 years Fayetteville, NC Conspiracy to Solicit and Receive a Bribe: 5 years Conspiracy to Commit Extortion Under Color of Official Right: 20 years Destruction of Evidence: 20 years False Statements: 5 years Willie Williams 60 years Staten Island, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years Calvin Wright 52 years Brooklyn, NY Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years [1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.


title: Justice Department and Federal Partners Recognize Zero Tolerance Day for Female Genital Mutilation

component: Criminal Division

body_text: The Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) joined federal partners, including U.S. Immigration and Customs Enforcement’s Human Rights Violators and War Crimes Center (HRVWCC) and the FBI’s International Human Rights Unit (IHRU), non-governmental organizations (NGOs), and others today in recognizing the International Day of Zero Tolerance for Female Genital Mutilation (FGM). “Female genital mutilation, a form of gender-based violence and child abuse, will not be tolerated today — or any day — in the United States,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Justice Department and our law enforcement partners remain committed to holding perpetrators accountable and to providing support for victims of FGM using every tool available to us.” “Female genital mutilation is a devastating crime affecting the lifelong emotional and physical wellbeing of survivors,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “Ending this human rights abuse will take a multidisciplinary approach from law enforcement, including community outreach, education, and training. Today and every day, the FBI stands with women and girls against FGM and all forms of violence.” “This international observance provides an opportunity to recognize this global issue, while raising awareness of those whose lives have been claimed or who have suffered life-long effects from this abhorrent practice,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI, along with our global partners, is dedicated to ending this practice, advocating for victims, and bringing perpetrators to justice.” Federal law enforcement agencies have engaged in many initiatives aimed at protecting those in the United States who have been subjected to, or who may be at risk of, FGM: The Justice Department’s Office of Victims of Crime awarded over $5 million in 2020 and 2021 in three-year grants through a grant program to support community projects designed to increase direct services, education, and community partner engagement to stop the victimization of women and girls through FGM. For more information, please see www.ojp.gov/sites/g/files/xyckuh241/files/media/document/ojp-news-10302020.pdf . Federal law enforcement authorities actively investigate allegations of FGM within the United States and abroad. Agencies collect tips and leads from the public and partner with NGOs that will relay information if they suspect a child is in imminent danger of being subjected to FGM or taken out of the country for purposes of FGM. Individuals suspected of FGM may be investigated by the HRVWCC and prosecuted by the Justice Department as appropriate. The FBI’s IHRU proactively conducts outreach to NGOs and provides frequent trainings to educate both the public and the FBI workforce on the FGM violation. These trainings provide awareness to the public about this form of abuse, which is a federal crime, as well as provide the FBI workforce the necessary tools to investigate and prevent instances of FGM. The Justice Department’s Office on Violence Against Women (OVW) administers federal grant funding authorized under the Violence Against Women Act to prevent and address sexual assault, domestic violence, and stalking. Funds from certain OVW grant programs may be used by grantees to provide culturally specific victim services and responses to FGM. HSI launched Operation Limelight USA, a premier FGM outreach and education program, in 2017, which has been recognized domestically and internationally as a critical outreach effort to combat FGM by the Women in Federal Law Enforcement and the World Class Policing Awards. Examples of other agency initiatives aimed at protecting women and girls at risk of FGM can be found in the STOP FGM Act 2022 Annual Report of the Attorney General . FGM is a form of child abuse, a serious human rights violation, and, since 1996, a federal crime in the United States. In 2013, Congress amended the federal FGM statute, 18 U.S.C. § 116, to prohibit taking a girl out of the United States for the purpose of performing FGM. In 2021, the STOP FGM Act 2020 was signed into law, strengthening existing law by expanding the scope of punishable acts and increasing the maximum penalty. Violations of this law may result in imprisonment and potential removal from the United States. According to UNICEF, more than 200 million women and girls have been subjected to FGM, which refers to procedures that injure the female genital organs for non-medical reasons. While primarily concentrated in North, West, and Central Africa, as well as parts of the Middle East and Asia, FGM also occurs in the United States. Established in 2008, the HRVWCC furthers HSI’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, FGM, and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians, and analysts who direct the agency’s broader enforcement efforts against these offenders. Members of the public who have information about victims or suspected perpetrators engaging in FGM or other human rights abuses are urged to call the FBI tip line at 1-800-CALL-FBI (800-225-5324) or the HSI tip line at (866) 347-2423. To submit a tip online, visit tips.fbi.gov or the HSI online form . Tips may be provided anonymously.


title: Houstonians charged in series of early morning diner robberies

component: USAO - Texas, Southern

body_text: HOUSTON – Three men have been indicted on multiple crimes in relation to violent armed robberies of local restaurant chains, announced U.S. Attorney Alamdar S. Hamdani. Christopher Djuan Roberts, 27, and Xavier Edward Jones, 28, both of Houston, are set to appear for their detention hearings at 10 a.m. before make their initial appearances before U.S. Magistrate Judge Peter Bray. Wesley James Thomas, 29, currently in custody in another jurisdiction, will make his initial appearance in Houston in the near future. The indictment, returned Jan. 24, alleges interference with commerce by threat or force, brandishing of a firearm in relation to a crime of violence and felon in possession of a firearm. In the early morning hours of Oct. 15, 2023, the three men allegedly robbed a Waffle House located at 635 Rankin Road. Immediately after the robbery, the trio proceeded to rob a Denny’s located at 11320 North Freeway, according to the charges. During both robberies, the men allegedly brandished handguns while taking money from Waffle House employees and both employees and customers of Denny’s. Roberts and Thomas are both convicted felons and are prohibited from possessing a firearm per federal law. If convicted of brandishing of a firearm in relation to a crime of violence, the men face up to life imprisonment while the interference with commerce by threat or force carries a possible sentence of up to 20 years. Additionally, Roberts and Thomas face up to 15 years in prison if convicted for being felons in possession of a firearm. All charges also carry a possible penalty of up to $250,000. The Bureau of Alcohol, Tobacco and Firearms (ATF) through the collaborative efforts of the ATF Strike Force conducted the investigation along with the Harris County Sheriff’s Office and Houston Police Department. Assistant U.S. Attorney Brian J. Hrach is prosecuting the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.


title: Las Cruces Man Pleads Guilty to Commissioning a Murder-for-Hire

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

body_text: ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jeffrey C. Boshek II, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, announced today that Leif Everett Hayman pled guilty to one count of use of interstate commerce facilities in the commission of murder-to-hire. Hayman, 33, of Las Cruces, will remain in custody pending sentencing, which has not been scheduled. A federal grand jury indicted Hayman on July 20, 2022. According to publicly available court records, between April 10, 2022, and continuing through May 11, 2022, Hayman solicited a hitman to murder his girlfriend's mother by submitting three service requests on the website "rentahitman.com." In his first service request, Hayman stated that he wanted to “hurt” the victim and wrote “I want her gone now, too much that I don’t like about her she’s controlling my wife.” As part of these service requests, Hayman provided the website with the identity of the intended victim including the victim's physical address and photographs of the victim and stated, “this is the target person if you don’t do it I will do it myself I’m already thinking about just doing it myself I want her gone now.” Following those three service requests, Hayman sent numerous follow-up emails to the website between April 20 and May 2, 2022. In those emails, Leif expressed that he was losing patience with how long the process was taking. On May 5, 2022, an ATF agent, acting in an undercover capacity contacted Hayman. During the conversation, Hayman expressed that he wanted the victim “gone off the Earth.” The agent and Hayman discussed various ways to carry out the killing including the use of a gun, baseball bat, knives, and rocks. On May 6, 2022, Hayman followed up with the undercover agent via text message and provided him with the victim's physical address and a photograph. On May 9, 2022, Hayman had a telephone conversation with the undercover agent. During that call, Hayman indicated to the agent that he lived with staff and that the undercover agent/hitman would also have to harm his caretaker in order for him to leave the home. Hayman ultimately agreed to pay the undercover agent/hitman approximately $200 to murder the victim. On May 11, 2022, the undercover agent went to Hayman’s house under the auspices of picking him up to carry out the hit on the victim. When the agent showed up, Hayman emerged from the residence with his caretaker in tow. Hayman indicated to the agent that he wanted something done to the caretaker and stated to the agent "this is part of the deal." The caretaker and Hayman began shoving each other and the undercover agent aborted the operation and drove away. At sentencing, Hayman faces up to 10 years in prison. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorneys Maria Y. Armijo and Ry Ellison are prosecuting the case. # # # 24-57


title: Providence Man Sentenced to Federal Prison for Trafficking Meth and Fentanyl

component: Drug Enforcement Administration (DEA)

body_text: PROVIDENCE, RI – A Providence man with a lengthy criminal history, to include more than a dozen convictions for a wide variety of offenses, including breaking and entering, drug trafficking, domestic violence, forgery and counterfeiting, larceny, armed bank robbery, and carrying a concealed weapon, was sentenced today to five years in federal prison for trafficking more than a pound of methamphetamine and more than 60 grams of fentanyl, announced United States Attorney Zachary A. Cunha. John Walker, 61, pleaded guilty on June 13, 2023, to charges of possession with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 40 grams or more of fentanyl. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 60 months in federal prison to be followed by five years of federal supervised release. During an investigation into Walker’s suspected drug trafficking activities in March 2022, members of the Rhode Island DEA Drug Task Force observed Walker provide another individual with a sample of methamphetamine. Later that same day the individual arranged for the purchase of meth from Walker. When approached by a DEA Task Force officer, Walker admitted that he had meth on his person and that he had additional drugs stored at a drug den that he frequently visited. Members of the DEA Task Force seized 59 grams of meth and $5,902 in cash from Walker’s person and 449 grams of methamphetamine and 64 grams of fentanyl stashed by Walker at the Providence drug den. The case was prosecuted by Assistant U.S. Attorney G. Michael Seaman. The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; the Cranston, Middletown, Newport, Pawtucket, Providence, Warwick, Woonsocket, Amtrak Police Departments. ###


title: San Diego Restaurant Owner Charged with Tax and COVID-Relief Fraud Schemes

component: Tax Division

body_text: A federal grand jury in San Diego returned a superseding indictment on Feb. 2, charging a California man with wire fraud, conspiracy to commit wire fraud, tax evasion, filing false tax returns, conspiracy to defraud the United States, conspiracy to commit money laundering and failing to file tax returns. According to the indictment, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area. He allegedly conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return filed with the IRS. The indictment alleges that from March 2020 to June 2022, Suel and the business partner then used this false corporate tax return to qualify for the COVID-19-related Paycheck Protection Program and Restaurant Revitalization Funding loans. Suel also allegedly falsely certified on loan forgiveness applications that he spent the money his restaurants received from these programs only for payroll. The indictment charges that Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and his co-conspirator allegedly concealed more than $2.4 million in cash at their residence. The indictment further charges that Suel failed to report income he received from his businesses, including millions of dollars in cash and personal expenses paid for by the businesses, such as the rent for his home. In 2023, Suel also allegedly filed original and amended tax returns for prior tax years that included false depreciable assets and business losses. If convicted, Suel faces a maximum penalty of 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud, 10 years in prison for each count of conspiracy to commit money laundering, five years in prison for tax evasion and conspiracy to defraud the United States, three years in prison for each count of filing false tax returns and one year in prison for each count of failing to file tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Tara K. McGrath for the Southern District of California made the announcement. IRS Criminal Investigation is investigating the case. Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Illinois Man Indicted for Multi-Million Dollar Ponzi Scheme

component: USAO - New York, Eastern

body_text: Earlier today, in federal court in Brooklyn, Alan John Hanke, the sole member of IOLO Capital (IOLO), was arraigned before United States Magistrate Judge Joseph A. Marutollo on a nine-count indictment charging him with securities fraud conspiracy, wire fraud conspiracy, money laundering conspiracy, wire fraud, bankruptcy fraud, and filing a false bankruptcy declaration, in connection with schemes to induce investors to purchase speculative investments, to misappropriate the funds, and then to use the bankruptcy system to discharge his debts to his victims. Hanke was arrested on January 25, 2024, in Cape Canaveral, Florida, as he was boarding an international cruise. The defendant made his initial appearance on January 26, 2024 in United States District Court for the Middle District of Florida and was released on a $250,000 bond. Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and David Walker, Special Agent-in-Charge, FBI, Tampa Field Office, announced the arrest and charges. “As alleged, the victims trusted Hanke with millions of dollars for what they were assured would be safe investments,” stated United States Attorney Peace. “In reality, the defendant deceived the victims and used their money to enrich himself with vacations and a luxury car, and then sought to abuse bankruptcy proceedings to shield his ill-gotten gains. This Office will hold the defendant accountable for his criminal acts of greed and dishonesty and seek justice for his victims.” Mr. Peace thanked the Office of the United States Trustee for the Northern District of Illinois and the United States Attorney’s Office for the Middle District of Florida for their assistance in the matter. "Alan Hanke took a gamble by allegedly defrauding investors out of millions of dollars, which he ultimately used to fund his own personal expenses while also lying to bankruptcy court. Hanke’s luck eventually ran out. He will now be forced to answer for his alleged false promises, lies, and misrepresentations. You can bet the FBI will continue to make sure swindlers face just punishment for their attempted frauds," stated FBI Assistant Director-in-Charge Smith. As alleged in the indictment, between November 2018 and August 2021, Hanke persuaded numerous investors, often in meetings in New York City, to invest in IOLO or related Hanke-run companies. Hanke promised investors high returns within short periods of time by investing in, among other things, “standby letters of credit,” “medium term notes,” and “high yield bonds.” Hanke also assured investors that their investments would be insured against losses. However, nearly all of the money that the victims invested with Hanke went to the defendant’s personal expenses, including cruises, airfare, hotels, gambling expenses, and a luxury car. Hanke also paid co-conspirators and other investors with money that he wrongfully obtained during the scheme. The indictment further alleges that Hanke filed a bankruptcy petition in June 2021 in Illinois, in which he sought to discharge the debts that he owed to his victims. In the bankruptcy petition, Hanke disclosed that he was paid monthly Social Security and Disability checks, but did not disclose the millions of dollars of income he received from his victims. Hanke also did not disclose the proceeds from the sale of an airplane, or that he used the proceeds for personal expenses, including gambling and repairs to a close relative’s home, as well as $180,000 that was withdrawn in cash. If convicted, Hanke faces a maximum sentence of 20 years’ incarceration on the wire fraud, wire fraud conspiracy, and money laundering conspiracy counts and five years’ imprisonment on the securities fraud conspiracy, bankruptcy fraud, and false bankruptcy declaration charges. The charges in the indictment are allegations, and Hanke is presumed innocent unless and until proven guilty. The government’s case is being handled by the Office’s Business and Securities Fraud Unit. Assistant United States Attorneys Nicholas J. Moscow and Matthew Skurnik are in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates. The Defendant : ALAN JOHN HANKE Age: 50 Crystal Lake, Illinois E.D.N.Y. Docket No. 24-CR-27 (RER)


title: Middle District Of Florida U.S. Attorney’s Office Collects More Than $78 Million In Civil And Criminal Actions In Fiscal Year 2023

component: USAO - Florida, Middle

body_text: Tampa ― U.S. Attorney Roger B. Handberg announced today that the Middle District of Florida (MDFL) has collected $78,043,065 related to local criminal and civil matters in the fiscal year ending September 30, 2023 (FY 2023). Of this amount, $36,767,863 was collected in criminal cases and $28,641,442 was collected in civil actions. The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $41,230,830 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the District’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $12,589,388 in these jointly handled cases. “We will continue to work with our law enforcement partners to investigate and prosecute those who seek to illegally exploit federal government programs by fraudulent means,” said U.S. Attorney Roger B. Handberg. “The funds recovered in the previous fiscal year will help victims recover from their losses and assist law enforcement in pursuing justice.” U.S. Attorneys’ Offices, along with the Department’s litigation divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. The MDFL’s Asset Recovery Division, led by Chief Anita Cream, recovered a total of $55,930,305. This amount has two components―criminal monetary penalties and forfeiture. First, in addition to the $36,767,863 in criminal monetary penalties collected in cases prosecuted by the District, the Asset Recovery Division worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $44,372 in criminal monetary penalties pursued jointly by these offices. Additionally, the District’s Asset Recovery Division, working with partner agencies, forfeited $19,118,070 from criminal and civil asset forfeiture actions in FY 2023. For instance, in FY 2023, almost $44 million forfeited in the MDFL was returned to victims of the criminal offenses, and more than $3 million was shared with federal, state, and local law enforcement agencies. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Significant Affirmative Civil Enforcement Cases United States ex rel. Sanchez v. Smart Pharmacy, et al. , Case no. 3:14cv1493 (M.D. Fla.). The United States intervened in two related qui tam cases in June 2018 and litigated the government’s claims against a large Jacksonville area compounding pharmacy, Smart Pharmacy, and one of its principal owners, Gregory Balotin, claiming that the pharmacy billed the Tricare program for millions of dollars in reimbursement for medically unnecessary pain creams. Specifically, the intervenor complaint alleged the pharmacy created compounded creams using an anti-psychotic agent, Ariprazole, for no medical purpose and solely to boost reimbursement. The complaint also alleged that the pharmacy routinely waived patient co-payments, without regard to patient need, to improperly incentivize prescriptions for the unnecessary pain creams. In June 2023, we announced a settlement of all claims in exchange for $7.4 million. Press release: https://www.justice.gov/opa/pr/two-jacksonville-compounding-pharmacies-and-their-owner-agree-pay-least-74-million-resolve United States ex rel. Bomar v. Bayfront HMA Medical Center, et al. , Case no. 8:16cv3310 (M.D. Fla.). An investigation arising from this qui tam case determined that the Lakeland Regional Medical Center (LRMC) had defrauded the Florida Medicaid program through a complex scheme involving sham donations to local government organizations. These donations increased Medicaid payments to LRMC, by freeing up funds for the local government to make payments to the State as the state share of Medicaid payments to LRMC. The state share was “matched” by the federal government before being returned to LRMC as Medicaid payments. Through this scheme, Medicaid payments LRMC received were thus funded by the federal government and LRMC’s own donations, in violation of the prohibition on non-bona fide donations. In March 2023, LRMC agreed to pay $4 million to resolve these allegations. Press release: https://www.justice.gov/opa/pr/florida-s-lakeland-regional-medical-center-agrees-pay-4-million-settle-common-law-allegations United States ex rel. Improta v. Ocenture , Case no. 3:19cv358 (M.D. Fla.). The United States intervened in this qui tam case that alleged a kickback scheme arising from genetic testing services. The complaint alleged that Ocenture and a subsidiary company, Carelumina, solicited genetic testing samples from Medicare beneficiaries directly and through marketers. Ocenture and Carelumina then paid physicians to falsely attest that the genetic testing was medically necessary and arranged for laboratories to process the tests and receive reimbursement from Medicare, with a portion of that reimbursement being paid to Ocenture and Carelumina. In December 2022, we announced a settlement of all claims in return for $3 million. Press release: https://www.justice.gov/opa/pr/ocenture-llc-and-carelumina-llc-settle-allegations-false-claims-unnecessary-genetic-testing Skyetec The U.S. Environmental Protection Agency - Office of Inspector General accused a Jacksonville area company, SMC Systems, Inc. d/b/a Skyetec, of violating the Financial Institutions Reform, Recovery and Enforcement Act of 1989 through a scheme whereby Skyetec would falsely certify that newly constructed homes met certain energy efficiency requirements and qualified for EPA’s “Energy Star” rating. The certifications were alleged to have been given to homes in many instances where Skyetec had performed incomplete tests on homes, or had run no tests at all. In September 2023, Skyetec agreed to settle our claims for $2.35 million. Press release: https://www.justice.gov/opa/pr/smc-systems-inc-pay-235-million-resolve-allegations-false-statements-relating-energy-star United States ex rel. Graham, et al. v. Florida Cardiology, P.A., et al. , Case no. 6:18cv1444 (M.D. Fla.) The United States intervened in this qui tam case in June 2022, and alleged that an Orlando area cardiology practice, Florida Cardiology, P.A., and 10 of its cardiologists―Sandeep Bajaj, Abbas Ali, Karan Reddy, Claudio Manubens, Milan Kothari, Saroj Tampira, Sayed Hussain, Raviprasad Subraya, Harish Patil, and Edwin Martinez―defrauded Medicare through a variety of schemes, including the submission of false claims for more interventional stints that were actually inserted into patients, claims for radiofrequency ablations that were not performed by the billing provider and in some instances that were not performed by a qualifying provider, and claims for services performed while the billing provider was outside of the country. In February 2023, the defendants agreed to settle all claims in the case in exchange for $2 million. Press Release: https://www.justice.gov/usao-mdfl/pr/florida-cardiology-pa-and-10-physicians-agree-pay-2-million-settle-false-claims-act


title: Kroger, Harris Teeter Pharmacies in Charlottesville to Pay U.S. $1.3 Million

component: USAO - Virginia, Western

body_text: CHARLOTTESVILLE, Va. – A Kroger Pharmacy and a Harris Teeter Pharmacy in Charlottesville, Virginia have both agreed to pay the United States a combined total of $1.3 million to settle civil claims that the stores violated the Controlled Substances Act (CSA). “We have seen a record number of Americans lose their lives in recent years as a result of opioid poisoning,” United States Attorney Christopher R. Kavanaugh said today. “This epidemic remains ongoing, and we know that many individuals struggling with addiction are obtaining opioids and other addictive drugs from pharmacies who choose to look the other way. My Office continues to work with the DEA and others to hold accountable any pharmacy or doctor who illegally prescribes these highly-addictive and dangerous drugs.” “Healthcare providers, including pharmacies, have a vital responsibility when it comes to dispensing medications to meet the health needs of their patients. Our goal is to ensure that healthcare providers are equipped with the necessary tools and knowledge to deliver high-quality care to their patients, while also preventing the diversion and misuse of prescription drugs for the safety and well-being of our citizens,” said Jarod A. Forget, Special Agent in Charge, DEA Washington Division. Specifically, the United States contends the two pharmacies violated the CSA at least 160 times between February 2018 and April 2021 by filling invalid prescriptions for opioids and benzodiazepines that were written by a physician clearly acting outside the scope of his medical practice, and pharmacists at both locations should have known this information and refused to fill those illegal prescriptions. United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Special Agent in Charge Jared A. Forget of the Drug Enforcement Administration - Washington Division made the announcement. Assistant U.S. Attorney Justin Lugar and the DEA Richmond District Office investigated the matter. The claims resolved by the settlement are allegations only and there has been no determination of liability.


title: Chicago-Area Man Pleads Guilty to Role in Nationwide Fraud Conspiracy

component: USAO - Massachusetts

body_text: BOSTON – A Chicago-area man has pleaded guilty in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States. Demario Sorrells, 38, of Rockford, Ill., pleaded guilty on Feb. 2, 2024 to one count of conspiracy to commit wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 28, 2024. Sorrells was initially indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong and rap artist Herbert Wright. According to court documents, beginning in at least March 2017 through November 2018, Sorrells, Wright and, allegedly, their co-defendants conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders' names, addresses, security codes and account expiration dates. Generally, because the payment card information was authentic, the defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Wright and his alleged co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies who then charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions. According to court filings, on certain occasions, Strong obtained valuable goods and services for the benefit of Sorrells, including private jet flights, luxury accommodations and elite automobile rentals. On other occasions, Strong contacted Sorrells to obtain illicit account information and Sorrells provided Strong with illicit account information that he obtained from the dark web. On other occasions, Strong sometimes paid Sorrells in exchange for the illicit account information. Sorrells knew the illicit account information was stolen data. In total, Sorrells was responsible for $106,000 in victim losses. On Jan. 11, 2024 , Wright was sentenced to three years’ probation and was ordered to pay restitution and forfeiture of $139,968 each, as well as a $5,500 fine. In July 2023 , he pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official. The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to five 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. Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case. The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Manhattan Man Sentenced To 27 Months In Prison For Conspiracy To Transport A Firearm Interstate

body_text: Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced that JAMIL HAKIME was sentenced today to 27 months in prison for conspiring to transport a firearm interstate in connection with HAKIME’s sale of a firearm and 19 rounds of ammunition on November 18, 2022, to Christopher Brown and Matthew Mahrer. Brown and Mahrer planned to use the weapon to violently attack a synagogue in New York City. At the time of the sale, HAKIME was employed by New York City’s Administration for Children Services (“ACS”), where he worked with New York City youth. HAKIME previously pled guilty on March 14, 2023, before U.S. District Judge Analisa Torres, who imposed today’s sentence. U.S. Attorney Damian Williams said: “Jamil Hakime, a City employee who was supposed to be protecting youths, instead decided to arm two men — one of whom had just declared on Twitter his plan to ‘shoot up a synagogue’ — with a powerful firearm and ammunition. But for swift action by law enforcement, Hakime’s actions could have resulted in a monumental tragedy on New York’s Jewish community and could have devastated the lives of many people who were targeted solely for their religious beliefs and their desire to worship. The sentence imposed today sends a clear message to those who would recklessly arm others with weapons that may be used to commit acts of mass violence that such conduct will not be tolerated.” FBI Assistant Director in Charge James Smith said: “Hakime admitted that he willingly chose to provide two men with a firearm enhanced with features enabling it to harm dozens of victims. The men to whom he chose to sell that firearm planned to use it to attack a synagogue. Thankfully, the FBI’s Joint Terrorism Task Force in New York became aware of the plot. Along with our law enforcement partners, we were able to disrupt their plans before they could do any harm, but the outcome could have been far worse. The punishment handed down today shows that there are serious consequences to arming others with dangerous weapons designed to kill.” NYPD Commissioner Edward A. Caban said: “Individuals like Hakime who enable others to carry out hate-motivated attacks must face the consequences of their actions. NYPD investigators, closely partnering with our state and federal colleagues on the FBI’s New York Joint Terrorism Task Force, likely averted tragedy through their swift and diligent work on this case. Today’s sentencing serves as a reminder of our ongoing work to hold accountable anyone who threatens the safety and security of New Yorkers.” According to the Indictment, documents previously filed in the case, and statements made in court: In the early morning hours of November 18, 2022, Brown posted on Twitter that he intended to “shoot up a synagogue,” emphasizing, “This time I’m really gonna do it.” That afternoon, Brown and Mahrer contacted HAKIME, a resident of Manhattan who had been employed since 2014 by ACS as a Youth Developmental Specialist, to obtain a firearm. HAKIME, Brown and Mahrer traveled together in HAKIME’s vehicle from Manhattan to HAKIME’s home in Pennsylvania. During the trip to HAKIME’s residence, law enforcement contacted Brown by phone regarding his threatening online posts. Brown then deleted the threatening messages that he had posted on Twitter. Shortly thereafter, HAKIME, Brown, and Mahrer arrived at HAKIME’s Pennsylvania home, where HAKIME retrieved for Brown and Mahrer a Generation 5 Glock 17 pistol (the “Firearm”) as well as 19 rounds of ammunition (the “Ammunition”). The Firearm had an extended magazine, which allowed it to hold up to 30 rounds of ammunition, and a weapon-mounted light and red dot optic device that allowed the user to have better aim at his target. HAKIME taught Mahrer and Brown how to use the Firearm and further instructed the men to wipe off the Firearm to remove HAKIME’s fingerprints. Brown and Mahrer paid HAKIME approximately $650 for the Firearm and Ammunition. HAKIME then drove Brown and Mahrer back to Manhattan with the Firearm and Ammunition. Brown and Mahrer temporarily hid the Firearm and Ammunition in Mahrer’s bedroom at his family’s residence in Manhattan and then traveled together to Penn Station, where they were arrested by law enforcement. HAKIME remained in phone contact with Mahrer until minutes before Brown’s and Mahrer’s arrests. At the time of those arrests, law enforcement recovered from a bag that Brown was carrying a large hunting knife and a Swastika arm band. Law enforcement also recovered from Mahrer’s apartment a backpack containing the Firearm and Ammunition, as depicted below: * * * In addition to his prison term, HAKIME, 59, of New York, New York, was sentenced to three years of supervised release. Mr. Williams praised the outstanding investigative work of the FBI New York Field Office, including the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI’s Civil Rights Squad. This case is being handled by the Office’s National Security and International Narcotics Unit and Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Sarah L. Kushner and Mitzi S. Steiner are in charge of the prosecution.


title: Tax Preparer Sentenced for Including False Information on Federal Tax Returns

component: USAO - Alabama, Middle

body_text: MONTGOMERY, ALABAMA – Today, Acting United States Attorney Jonathan S. Ross announced the sentencing of a Sandersville, Georgia woman for aiding and assisting in the filing of false tax returns. On February 2, 2024, a federal judge sentenced 44-year-old April Michelle Nesbitt to 33 months in prison. Federal inmates are not eligible for parole. According to her plea agreement and other court records, from 2015 to 2021, Nesbitt worked at Superior Tax Group in Montgomery, Alabama. There, Nesbitt filed federal income tax returns for clients. In her plea agreement, Nesbitt admitted that, on at least two occasions, she included false information on a client’s return. Doing so caused the taxpayer to receive greater refunds than he or she was entitled to receive. Specifically, Nesbitt included expenses on a client’s 2018 and 2020 tax returns related to a childcare business that did not exist. In addition to the prison sentence, the judge also ordered that Nesbitt pay restitution in the amount of $46,669 to the IRS. “Tax fraud is a major problem costing the American taxpayer millions each year,” said Acting United States Attorney Ross. “I encourage all taxpayers to review their returns and confirm that they recognize the information. If a tax preparer refuses to let you examine your tax return before it is filed, or if you review your tax return and see a business that is not yours or expenses you do not recognize, ask for clarification or seek a second opinion from a different return preparer.” “April Nesbitt used her position as a tax preparer to steal from the American people,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Tax preparers contemplating filing fraudulent tax returns should look at her sentencing as an example of what to expect after IRS Criminal Investigation special agents and our law enforcement partners discover their crimes.” For additional guidance, see the IRS fact sheet on their website at https://www.irs.gov/pub/irs-news/fs-08-10.pdf . IRS-Criminal Investigation investigated this case, which Assistant United States Attorney Megan A. Kirkpatrick prosecuted.


title: Greensboro Man Pleads Guilty to Multiple Firearms Offenses Relating to Possession and Sale of Drop-in Auto Sears and Glock Conversion Devices

component: USAO - North Carolina, Middle

body_text: GREENSBORO –A Greensboro man pleaded guilty today to multiple firearms charges including one count of unlawfully dealing in firearms, one count of possession of a machinegun, and one count of trafficking in firearms, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina. According to court documents, in 2023, MAHMOUD MAZEN ABU-DAMES, 24, was trafficking privately made firearms (PMFs) and machinegun conversion devices (MCDs) online using Telegram, an internet based, online messaging application. ABU-DAMES advertised the sale of 3-D printed drop-in auto sears, which are devices designed and intended to convert semi-automatic rifles into fully automatic machineguns, as well as Glock conversion devices, commonly referred to as “switches,” which are used to convert Glock pistols into fully automatic machineguns. In August of 2023, an undercover agent (UC) began communicating with ABU-DAMES through Telegram about purchasing drop-in auto sears and Glock conversion devices. ABU-DAMES agreed to sell the UC four to five drop-in auto sears and one Glock conversion device. When ABU-DAMES learned the UC lived in the Greensboro area, he insisted on leaving the package on Palmetto Trail, a walking trail located off Old Battleground Road in Greensboro. ABU-DAMES also included four dosage units of Xanax and asked the UC to find a market for them. After the first transaction, ABU-DAMES offered to sell the UC two AR-15 pistol variants, along with two drop-in auto sears to convert them to fully automatic machineguns. He also offered to sell the UC another Glock conversion device or “switch.” ABU-DAMES described both firearms as “ghost guns” and noted that they did not have serial numbers. When the UC met with ABU-DAMES to conduct the second transaction, the UC saw that one of the firearms still had a serial number on it. The UC informed ABU-DAMES that he planned to traffic the firearm to Mexico and ABU-DAMES requested that the UC obliterate the serial number before doing so to ensure it would not be traced back to him. During this transaction, the UC was accompanied by a confidential informant (CI) who was a convicted felon. When the UC asked ABU-DAMES if it was legal for the CI to possess a firearm, ABU-DAMES told the UC it was not legal for the CI to have a firearm as a convicted felon but suggested that it would be better for the CI to carry the PMF rather than the serialized firearm since it had no identifiable markings. A few weeks later, one final transaction was conducted. In that transaction ABU-DAMES demonstrated how to install a Glock conversion device. On October 2, 2023, agents with the Bureau of Alcohol Tobacco, Firearms, and Explosives executed a search warrant at ABU-DAMES’ residence. Agents recovered three 3-D printers, numerous firearms, dozens of MCDs, and two unmarked plastic bags containing green and blue tablets, identical to the suspected Xanax that ABU-DAMES previously included during his transactions with the UC. Sentencing is scheduled to take place on July 26, 2024, at 11:00 a.m. in Winston-Salem, North Carolina, courtroom #4, before United States District Judge Loretta C. Biggs. At sentencing, ABU-DAMES faces a maximum sentence of fifteen years in prison, a period of supervised release of at least three years, fines, and other monetary penalties. This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms. The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Greensboro Police Department, and the Federal Bureau of Investigation in New Jersey and is being prosecuted by Assistant United States Attorney Nicole R. DuPré. ###


title: Fort Worth Woman Sentenced to 24 Years in Federal Prison for Drug Trafficking

component: USAO - Texas, Western

body_text: DEL RIO, Texas – A Fort Worth woman was sentenced in a federal court in Del Rio to 292 months in prison for her role in a conspiracy to import methamphetamine into the U.S. According to court documents, Sally Renae Smith, 54, conspired with others to import 3.422 kilograms of methamphetamine which had a purity of 100%. Smith exchanged text messages with a co-conspirator trafficking methamphetamine into the U.S. from Mexico, instructing her to drive to her motel room in Del Rio once she made it through the point of entry. Smith was arrested on September 8, 2020, and has remained in federal custody since her arrest. She pleaded guilty on July 21, 2021. Smith's three co-conspirators also pleaded guilty and remain in federal custody awaiting sentencing. “This prison sentence of more than two decades is indicative of how serious we are in dismantling these drug trafficking organizations,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thank you to our partners at Homeland Security Investigations for their work in the investigation of this case. Importing illicit drugs into this country has severe consequences, which, alongside our law enforcement partners, we will enforce.” “HSI will continue to aggressively pursue narcotics traffickers,” said Special Agent in Charge Craig Larrabee for the HSI San Antonio Division. “Our work is not done, and our resolve in attacking the drug trade is as strong as ever. HSI will continue to investigate, arrest and prosecute those involved in narcotics trafficking to keep our communities safe.” HSI investigated the case. Assistant U.S. Attorney Rex Beasley prosecuted the case. ###


title: Missouri Man Sentenced to Serve 30 Years in Federal Prison for Sexually Exploiting Minors

component: Federal Bureau of Investigation (FBI)

body_text: CAPE GIRARDEAU – The U.S. Attorney's Office announced that Tony Ray Waites, 47, of Piedmont, Missouri, was sentenced Tuesday by U.S. District Judge Stephen N. Limbaugh, Jr. to 30 years in federal prison for the offense of production of child pornography. According to court documents, the investigation began in March 2022 when a then 11-year-old boy reported that he had been sexually abused by Waites on multiple occasions. The young boy further reported that he believed Waites recorded the abuse. The Wayne County Sheriff’s Office immediately obtained a search warrant for Waites’ residence. When officers explained the nature of the investigation, Waites quickly grabbed a knife and cut himself in the throat. He was immediately rushed to the hospital for medical treatment, where his condition stabilized. Meanwhile, officers seized various electronic devices inside Waites’ residence. During an examination of the devices, officers discovered several videos depicting Waites engaging in sexual activity with the 11-year-old boy. The examination further revealed that Waites made sexually explicit recordings of nine additional young boys from the area. At his guilty plea hearing last November, Waites admitted that he produced the video recordings depicting the ten young boys engaging in sexually explicit conduct. After serving the 30-year sentence, Waites will be placed on supervised release for the rest of his life. Waites will also be required to register as a sex offender. This case was investigated by the Wayne County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Jack Koester handled the prosecution for the government. 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: Smuggler Sentenced to 72 Months

component: USAO - Arizona

body_text: Driver Who Transported Alien in a Toolbox Also Found Responsible for Sexual Assault TUCSON, Ariz. – Luis Carlos Ballesteros-Moreno, 43, of Hermosillo, Mexico, recently living in Tucson, was sentenced last week by United States District Judge John C. Hinderaker to 72 months in prison, followed by three years of supervised release. On September 20, 2023, Ballesteros-Moreno pleaded guilty to Transportation of Illegal Aliens for Profit Placing in Jeopardy the Life of Any Person. On March 27, 2023, Ballesteros-Moreno was encountered by United States Border Patrol agents at the State Route 90 checkpoint. At the time, he appeared to be the only occupant of his vehicle, a Chevrolet Silverado pickup truck. Approximately an hour into the encounter, Ballesteros-Moreno informed agents that a female person was hidden inside a commercial-sized toolbox mounted in the truck bed. Upon opening the toolbox, agents discovered an 18-year-old female. She was determined to be an undocumented noncitizen that Ballesteros-Moreno was transporting for financial gain. The young woman reported to law enforcement that she had been sexually assaulted by Ballesteros-Moreno during the transportation. During sentencing, evidence was presented substantiating the sexual assault. The judge found that Ballesteros-Moreno created a substantial risk of death or serious bodily injury via the method of transporting the young woman in the exterior toolbox, and that he sexually assaulted and involuntarily detained her during the transportation. Customs and Border Protection’s United States Border Patrol, Tucson Sector, and the Cochise County Sheriff’s Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution. CASE NUMBER: 23-CR-00542-TUC-JCH RELEASE NUMBER: 2024-014_Ballesteros-Moreno # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: Philadelphia Woman Sentenced for Conspiring to Distribute 11 Kilos of Narcotics

body_text: BOSTON – A Philadelphia woman has been sentenced to eight days in prison for conspiring to distribute kilos of fentanyl and heroin. The government recommended a sentence of 37 months in prison. Elba Pena, 34, was sentenced on Feb. 1, 2024 by U.S. District Court Judge Allison D. Burroughs to time served (eight days) and three years of supervised release with one year to be served in home confinement. Pena pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl and heroin. In November 2021, Pena traveled from Philadelphia to Methuen, Mass. to deliver two kilograms of heroin to a person she thought was a customer. Specifically, on Nov. 16, 2021, Pena met with an undercover officer posing as the purported customer at a commercial plaza in Methuen and delivered the heroin. Pena was immediately taken into custody. A subsequent search of Pena’s Philadelphia residence resulted in the recovery of nine kilograms of fentanyl. Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit prosecuted the case.


title: Former FedEx Driver Sentenced for Selling Firearms He Stole From Packages on His Truck

body_text: BOSTON – A Middleborough, Mass. man was sentenced to six days in prison for stealing and selling three firearms from FedEx packages he was responsible for delivering. The government recommended a sentence of 10 months in prison. Frank P. O’Toole, 40, was sentenced on Feb. 2, 2024 by U.S. District Court Judge Angel Kelley to time served (six days) and three years of supervised release, during which period he must complete 250 hours of community service. On June 16, 2023, O’Toole pleaded guilty to two counts of possession or sale of a stolen firearm. O’Toole previously worked as a FedEx delivery truck driver at a facility in Middleborough. Between October 2021 and June 2022, O’Toole stole three packages sent from out-of-state which he was responsible for delivering, each containing a firearm – specifically, two rifles and a shotgun – intended for a Federal Firearms Licensee. O’Toole subsequently sold the three firearms to an undercover agent during two separate controlled purchases on Aug. 9, 2022 and Aug. 12, 2022. Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Middleborough Police Chief Joseph Perkins made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit prosecuted the case.


title: Father and daughter convicted of financial fraud related to pandemic relief funds, public housing

component: USAO - Ohio, Southern

body_text: CINCINNATI – A father and daughter have each been convicted of federal crimes related to financial fraud. India Cook, 37, of Cincinnati, pleaded guilty in U.S. District Court today to four counts of making false statements on COVID-relief loan applications. Rodney Cook, 56, of Cincinnati, pleaded guilty in August 2023 to two counts of making false statements on COVID-relief loan applications and Department of Housing and Urban Development (HUD) documents. According to court documents, in 2020 and 2021, India Cook filed fraudulent applications for COVID-19 Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) loans. Specifically, she submitted applications that were false and contradicted each other for several different companies, including C&H Tax Service, ADMR Shoes, Tax Lab LLC and Care 4 U. India Cook ultimately received nearly $144,000 in fraudulent loans. Rodney Cook prepared and submitted an application for AMP Clothing LLC (his daughter’s company) to receive pandemic related funds. AMP Clothing was not operating and did not have any employees or revenue at the time. He ultimately received and fraudulently spent more than $205,000 in EIDL and PPP loans. In a separate scheme, Cook purchased rental properties through a Department of Housing and Urban Development (HUD) program that was exclusively for owner-occupants who planned to live in the purchased property. Cook used “straw buyers” to purchase HUD properties in Cincinnati that he then rented out. Rodney Cook was sentenced in January 2024 to pay full restitution, a $7,500 court fine and to serve three years of probation. India Cook will be sentenced at a later date. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI); the department of Housing and Urban Development-Office of Inspector General (HUD-OIG) and Cincinnati Police Chief Theresa A. Theetge announced the guilty plea entered today before U.S. District Judge Jeffery P. Hopkins. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case. # # #


title: Rochester man charged for purchases made on illicit online marketplace

component: USAO - New York, Western

body_text: ROCHESTER, N.Y. -- U.S. Attorney Trini E. Ross announced today that Brandon Hall, 23, of Rochester, NY, was charged by criminal complaint with possessing 15 or more unauthorized access devices. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine. Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that since August 2018, the FBI has been investigating an illicit online marketplace known as Genesis Market, whose operators compile stolen data, such as computer and mobile device identifiers, email addresses, usernames, and passwords, from malware-infected computers around the globe and package it for sale on the market. Purchases made through Genesis Market are conducted using virtual currency, such as bitcoin. According to the complaint, between November 2019, and February 2021, Hall purchased 12 packages on Genesis Market that included approximately 1,100 stolen account credentials. The stolen credentials included accounts for Citi Bank, AT&T, Venmo, Twitter, Netflix, LinkedIn, Spotify, Hulu, Google, Paypal, Microsoft, Yahoo, Walmart, Target, and Amazon accounts. In May 2023, investigators executed a search warrant and seized Hall’s cell phone. An analysis of the phone recovered information regarding Hall’s activity on Genesis Market. Hall will make an initial appearance before U.S. Magistrate Judge Mark W. Pedersen on February 7, 2024, at 2:15 p.m. The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Federal Jury Finds Convicted Felon Guilty in String of Armed Business Robberies

component: USAO - Tennessee, Western

body_text: Memphis, TN – A federal jury delivered a guilty verdict recently in the case of a Memphis man charged with committing a series of armed robberies in summer 2022. Marchello Moore , 43, faces a mandatory minimum of 200 years in federal prison given his prior conviction in a similar case. United States Attorney Kevin Ritz announced the verdict today. According to information presented in court, on March 7, 2022, Moore escaped from Dismas Charities Halfway House where he had been serving the remainder of a 10-year federal sentence . Moore then conducted a series of armed robberies of local businesses: July 26, 2022: Circle K, 4010 Austin Peay Highway, Memphis, Tennessee. August 27, 2022: Subway Restaurant, 3647 South Mendenhall Road, Memphis, Tennessee. August 31, 2022: Half Off Shoes, 3625 Hickory Hill Road, Memphis, Tennessee. September 4, 2022: Circle K, 4010 Austin Peay Highway, Memphis, Tennessee. September 4, 2022: Dollar Tree, 3685 Lamar Avenue, Memphis, Tennessee. September 10, 2022: Mapco, 1505 East Brooks Road, Memphis, Tennessee. September 12, 2022: Circle K, 2678 Getwell Road, Memphis, Tennessee. September 12, 2022: Mapco, 5325 Summer Avenue, Memphis, Tennessee. September 16, 2022: Circle K, 2678 Getwell Road, Memphis, Tennessee. The defendant attempted to rob the store but fled the scene before getting any money. Moore then led the Memphis Police Department on a 40-minute high-speed chase before his arrest. After a six-day jury trial, Moore was convicted on February 5, 2024 of eight counts of robbery, one count of attempted robbery and eight counts of use of a firearm during and in relation to a crime of violence. United States Attorney Kevin Ritz thanked Assistant United States Attorney Elizabeth Rogers and Assistant United States Attorney Eileen Kuo, who prosecuted this case, as well as law enforcement partners who investigated the case.


title: Tulsa Gang Member Sentenced for Second Degree Murder

body_text: U.S. District Judge Gregory K. Frizzell sentenced Sir Michael Morgan, Jr., 20, of Tulsa to 210 months imprisonment, followed by 5 years of supervised release for Second Degree Murder in Indian Country. “Gang rivalry and gun violence resulted in the senseless death of Isaiah Jones,” said U.S. Attorney Clint Johnson. “Today’s sentence reflects this defendant’s callous disregard for life and reaffirms that prosecutors and law enforcement will hold violent criminals accountable for their actions.” According to court documents, on January 29, 2022, Morgan killed Isaiah Jones by shooting him multiple times. Morgan believed that Jones, who was in a rival gang, shot his friend. A confrontation led to Morgan shooting at Jones and Jones returning fire. Morgan pleaded guilty to intentionally shooting and killing Jones with a 9mm handgun. Morgan sustained four gunshot wounds. Morgan is a member of the Muscogee (Creek) Nation. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility. The FBI and Tulsa Police Department investigated the case. Assistant U.S. Attorneys Alicia N. Hockenbury and Stacey P. Todd prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Pair Sentenced to 300 Months in Prison

body_text: HAMMOND – Abigail Dawes, 30 years old, of East Chicago, Indiana, and Alfonso Rodriguez, 30 years old, of Chicago, Illinois, were sentenced by United States District Court Judge Philip P. Simon after pleading guilty to Producing Visual Depictions of A Minor Engaged in Sexually Explicit Conduct, announced United States Attorney Clifford D. Johnson. Dawes, sentenced February 1, 2024, and Rodriquez, sentenced today, were both sentenced to 300 months in prison followed by 15 years of supervised release. According to documents in the case, on or about June 2022, Dawes and Rodriquez produced child sexual abuse material. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Philip C. Benson and Emily Morgan. The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .


title: Laredo felon admits to possessing cocaine and handguns inside home

body_text: LAREDO, Texas – A 47-year-old man has pleaded guilty to possessing over 800 grams of cocaine, announced U.S. Attorney Alamdar S. Hamdani. The investigation began in September 2022, when law enforcement learned Homero Flores was selling cocaine in the Laredo area. They later located several clear plastic baggies in in his trash that were consistent with the size and shape of how narcotics would be stored for street-level sale. Authorities also found multiple handwritten notes on paper towels that contained weights, prices and terminology - all consistent with the sale of street-level quantities of cocaine. A search of his home resulted in the discovery of a plastic bag containing what was determined to be 850 grams of cocaine as well as two firearms. Flores has a 2012 conviction for conspiracy to possess with intent to distribute 500 grams or more of cocaine. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law. U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, Flores faces up to 40 years in federal prison and a possible $5 million maximum fine. Flores will remain in custody pending that hearing. The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department’s Narcotics Division conducted the investigation with assistance from Homeland Security Investigations and Border Patrol. Assistant U.S. Attorney Brian Bajew is prosecuting the case. This case is being prosecuted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. 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 on the Department of Justice’s OCDETF webpage .


title: Memphis Man Sentenced to 14 Years for Drug Trafficking Offenses

body_text: Memphis, TN – A federal judge sentenced a Memphis man to 14 years in federal prison for conspiracy to possess fentanyl with intent to distribute. United States Attorney Kevin G. Ritz announced the sentence today. According to the information presented in court, Bartlett Police Department detectives began investigating Derwin Owens , 32, in 2020 for suspected drug trafficking. Over several months, investigators purchased fentanyl from Owens and used tracking devices to identify several residences he used for storing narcotics. On August 13, 2020, investigators executed search warrants on those addresses, leading to the recovery of $33,000 and approximately 4.5 pounds of fentanyl. In November 2022, Owens pleaded guilty to conspiracy to possess with the intent to distribute 1.2 to 4 kilograms of fentanyl. On February 1, 2024, United States District Judge John T. Fowlkes sentenced Owens to 168 months in federal prison followed by five years of supervised release. There is no parole in the federal system. This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This case was investigated by the Drug Enforcement Administration, United States Postal Inspection Service, and Bartlett Police Department. U.S. Attorney Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks who prosecuted this case, as well as the law enforcement partners who investigated the case.


title: Nashua Man Pleads Guilty to Being a Felon in Possession of a Firearm

component: USAO - New Hampshire

body_text: CONCORD – A Nashua man pleaded guilty today in federal court to firearms-related charges, U.S. Attorney Jane E. Young announces. Joshua Smith, 39, pleaded guilty to being a felon in possession of a firearm. U.S. District Court Judge Joseph Laplante scheduled sentencing for May 16, 2024. Smith was indicted on May 31, 2022. On March 8, 2022, Nashua Police detectives were executing an outstanding warrant for the defendant’s arrest. Detectives apprehended and arrested the defendant as he was leaving the building to get into a taxi. The defendant was carrying a duffle bag that contained a 40 mm caliber riot gun. Intelligence revealed that the riot gun was the property of the Manchester Police Department. The defendant had been convicted of several felonies, including a robbery in 2013, and was therefore prohibited from possessing a firearm. The charges provide for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes, which govern the determination of a sentence in a criminal case. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Nashua Police Department led the investigation. Assistant U.S. Attorney Aaron Gingrande is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. ###


title: Bronx Man Arrested For Sweepstakes Fraud Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of DONALD DILLION on wire fraud and money laundering charges arising out of a scheme to defraud victims by convincing them that they had won prizes in a sweepstakes sponsored by a well-known marketing and sweepstakes company (the “Sweepstakes Company”). DILLION was arrested on February 3, 2024, at John F. Kennedy International Airport while attempting to enter the United States from Jamaica. DILLION was presented before U.S. Magistrate Judge Barbara Moses yesterday. U.S. Attorney Damian Williams said: “As alleged in the Complaint, Donald Dillion defrauded numerous victims, who were lured into thinking that they had won life-changing prizes in a well-known sweepstakes. Through their lies, Dillion and others allegedly convinced these victims that they would only receive their prizes if they first parted with tens of thousands of dollars in supposed taxes and fees. Dillion then allegedly laundered these funds by sending them to a foreign bank. My Office will prosecute these crimes to the fullest to demonstrate that fraud schemes like Dillion’s simply do not pay.” FBI Assistant Director in Charge James Smith said: “Winning a significant amount of cash or a luxury car through a sweepstakes often represents a dream to many Americans. Donald Dillion turned his victims’ dream into a nightmare when he allegedly stole tens of thousands of dollars through his fraudulent scheme. The FBI will continue to investigate and bring to justice anyone attempting defraud innocent people.” According to the allegations in the Complaint: [1] At least in or about 2021, DILLION, working with others, perpetrated a scheme in which victims were contacted by individuals claiming to work for the Sweepstakes Company, who convinced the victims that they had won a large cash prize and a luxury car as part of the Sweepstakes Company’s sweepstakes. The perpetrators of the scheme told the victims that their prizes would be released to them upon the Sweepstakes Company’s receipt of, among other things, the taxes and fees purportedly owed on the prizes. In this way, numerous victims were induced to wire tens of thousands of dollars to bank accounts held in the name of DD Metro Solutions LLC (“DD Metro”) and controlled by DILLION. DILLION wired a significant proportion of these victim funds to a Chinese bank, including memoranda with some of these wires suggesting no connection to the Sweepstakes Company. None of the victims received the cash prizes or luxury cars promised to them. * * * DILLION, 57, of the Bronx, New York, has been charged with conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the outstanding investigative work of the FBI. The prosecution of this case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti and Jennifer Ong are in charge of the prosecution. The charges in the Complaint are merely accusations, and DILLION is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Federal Grand Jury Indicts Louisville Man for Conspiracy to Distribute Fentanyl, Cocaine, and Heroin, Possession with Intent to Distribute Fentanyl, Possession of a Machinegun, and Possession of Firearms in Furtherance of Drug Trafficking

component: USAO - Kentucky, Western

body_text: Louisville, KY – A federal grand jury in Louisville, Kentucky, returned a four-count indictment on February 6, 2024, charging a local man with conspiracy to distribute fentanyl, cocaine, and heroin, possession with the intent to distribute fentanyl, possession of a machinegun, and possession of firearms in furtherance of drug trafficking. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division, and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement. According to the indictment, between October 1, 2023, and January 31, 2024, Tyrone Bunzy Jr. conspired to distribute fentanyl, cocaine, and heroin. Additionally, between October 23, 2023, and January 31, 2024, Bunzy Jr. possessed with the intent to distribute fentanyl. On January 31, 2024, Bunzy Jr. possessed a machinegun, that is a Glock Switch, which was attached a firearm he possessed. A Glock Switch device allows a semi-automatic handgun to function as an automatic and is defined as a machine gun under federal law. Finally, between January 16, 2024, and January 31, 2024, Bunzy Jr. carried and possessed firearms in furtherance of and in relation to his drug trafficking. Today Bunzy Jr. was arraigned before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. He remains detained pending trial. If convicted, he faces a minimum sentence of 5 years and a maximum sentence of 55 years in prison. A federal district court judge will determine any sentence after considering the advisory sentencing guidelines and other statutory factors. There is no parole in the federal system. This case is being investigated by the DEA and USPIS, with assistance from the ATF. Assistant U.S. Attorney Joe Ansari is prosecuting this case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Morton Man Pleads Guilty to Two Felony Counts in Connection with  Scheme to Defraud Former Employer

body_text: PEORIA, Ill. – A Morton, Illinois, man, Aaron Rossi, 40, pleaded guilty today to two felonies connected to a scheme to defraud both his former employer, a Bloomington, Illinois, medical clinic, and the United States. Rossi pleaded guilty to one count of mail fraud and one count of filing a false federal tax return in relation to this scheme. Sentencing for Rossi has been scheduled for June 5, 2024, at the U.S. Courthouse in Peoria, Illinois. A federal grand jury initially returned an indictment in March 2022, charging Rossi with three counts of filing false tax returns. A superseding indictment was returned in July 2022 that added six counts of mail fraud. In court before Chief U.S. District Judge Sara Darrow, Rossi admitted that he had carried out the scheme. He told the judge that he had not given all of his earnings information to his accountant so that he would not have to pay taxes on that income. He also admitted that he had taken funds from his former employer, Central Illinois Orthopedic Surgery in Bloomington, without their knowledge or permission, and had purchased personal items, including clothing and an ultra-high-definition big screen television, which he had mailed to his home. During the hearing, the government noted that Rossi had been involved in extensive fraud upon his employer. This fraud included his purchase of thousands of dollars of clothing from an upscale men’s store and payment for that clothing using company funds. Rossi hid his clothing purchases by calling them “medical supplies” or “uniforms” in his employer’s books and records. Rossi’s undisclosed expenditures also included leasing a luxury vehicle for himself and renting a private plane for his bachelor party. The government further stated that in just 2017, Rossi had more than $500,000 in income that he purposefully hid from the United States and did not declare on his taxes. Rossi was originally released on bond following indictment but was placed in the custody of the U.S. Marshals Service in September 2023 after multiple bond violations. He remains in custody pending sentencing. Rossi faces statutory penalties of up to 20 years’ imprisonment, followed by three years of supervised release, for the mail fraud count, and up to three years’ imprisonment, followed by one year of supervised release, for the false tax return count. Each of the counts also carries the potential of a fine. The case investigation was conducted by the United States Postal Inspection Service, the Internal Revenue Service, and the Federal Bureau of Investigation, Springfield Field Office. Assistant U.S. Attorneys Douglas F. McMeyer and Tanner K. Jacobs represent the government in the prosecution.