title: Do Kwon Extradited To The United States From Montenegro To Face Charges Relating To Fraud Resulting In $40 Billion In Losses

component: USAO - New York, Southern

body_text: Daniel M. Gitner, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515; Merrick B. Garland, the Attorney General of the United States; and James E. Dennehy, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DO HYEONG KWON was extradited from Montenegro and appeared in a federal courtroom in Manhattan earlier today to face federal fraud charges. Mr. Gitner also announced the unsealing of a Superseding Indictment against KWON. As alleged, KWON, the co-founder and former chief executive officer of Terraform Labs PTE, Ltd. (“Terraform”), engaged in multiple schemes to deceive investors in order to fraudulently inflate the value of Terraform’s cryptocurrencies. KWON arrived in the United States on December 31, 2024, and made his initial appearance in the Southern District of New York before U.S. Magistrate Judge Robert W. Lehrburger. KWON’s case is assigned to U.S. District Court Judge John P. Cronan, and will appear before Judge Cronan for an initial conference on January 8, 2025, at 10:30 a.m. Attorney for the United States Daniel M. Gitner said: “A federal grand jury has indicted Do Kwon for misleading his investors in order to fraudulently inflate the value of Terraform’s cryptocurrencies, and laundering the proceeds of his crimes. As we allege, this fraud and the crash of Terraform’s cryptocurrencies in May 2022 erased over $40 billion in investor assets, causing devastating losses to countless investors in the United States and around the world. Kwon will now face justice in a federal courtroom in Manhattan.” Attorney General Merrick B. Garland said: “Do Hyeong Kwon will now be held accountable in an American courtroom for, as alleged in court documents, his elaborate schemes involving Terraform’s cryptocurrencies, which resulted in over $40 billion in investor losses. We secured this extradition despite Kwon’s alleged attempt to cover his tracks by laundering proceeds of his schemes and trying to use a fraudulent passport to travel to a country that did not have an extradition treaty with the U.S. This extradition from Montenegro is an example of the Justice Department’s international partnerships, which enable the pursuit of criminals wherever they attempt to hide.” FBI Assistant Director in Charge James E. Dennehy said: “Do Kwon, co-founder and former CEO of Terraform, allegedly defrauded investors by falsely advertising the company's blockchain products as decentralized, reliable, and effective, and by engaging in market manipulation, ultimately resulting in more than $40 billion in investor losses. For at least four years, Kwon allegedly played puppet master to maintain this crafted illusion and ensnare investors. The FBI will tirelessly work to apprehend any individual who engages in fraudulent financial practices, even those who flee internationally to escape prosecution.” As alleged in the Superseding Indictment unsealed today in Manhattan federal court: [1] From at least in or about 2018, up to and including in or about 2022, KWON orchestrated schemes to defraud purchasers of Terraform cryptocurrencies. Among other things, KWON made false and misleading claims regarding the stability and efficacy of Terraform’s cryptocurrency stablecoin protocol, its use of blockchain technology, and its development of functioning and reliable financial technologies. As KWON knew, however, core Terraform products did not work as KWON had claimed. Rather, KWON manipulated Terraform products to create the illusion of a functioning, stable, and decentralized financial system. KWON’s conduct inflated the value of Terraform’s cryptocurrencies, which KWON and entities he controlled possessed in large amounts and sold to investors in exchange for billions of dollars’ worth of other assets. KWON’s misrepresentations included the following: The Stablecoin Misrepresentations : KWON made misrepresentations about the effectiveness of the system that lay at the heart of Terraform’s cryptocurrency empire, the “Terra Protocol,” which purportedly used a computer algorithm to maintain the value of Terraform’s so-called “stablecoin” pegged to the U.S. dollar, TerraUSD (“UST”), at a value of $1 for one UST. But as KWON knew, after the Terra Protocol failed to cause the restoration of UST’s $1 peg in May 2021, KWON reached an agreement with executives at a high-frequency trading firm (the “Trading Firm”) so that the Trading Firm would purchase large amounts of UST in order to artificially support UST’s $1 peg. The LFG Misrepresentations : KWON made misrepresentations about the governance of the Luna Foundation Guard Ltd. (the “LFG”), which KWON claimed was managed by an independent governing body and was tasked with deploying billions of dollars’ worth of financial reserves to defend UST’s peg. But as KWON knew, he controlled both the LFG and Terraform. In addition, KWON misappropriated hundreds of millions of dollars in assets from the LFG. KWON and others acting at his direction sought to launder those misappropriated funds through transactions designed to conceal and disguise the nature, location, source, ownership, and control of the funds. The Mirror Misrepresentations : KWON made misrepresentations about the success and operation of an investing platform on Terraform’s blockchain (the “Terra blockchain”) called Mirror Protocol (“Mirror”), that purportedly allowed users to create, buy, and sell synthetic versions of stocks listed on U.S. securities exchanges. KWON claimed that Mirror operated in a decentralized manner and that he and Terraform played no role in Mirror’s governance. But as KNOW knew, he and Terraform secretly maintained control over Mirror, and used automated trading bots to manipulate the prices of synthetic assets that Mirror issued. KWON also caused Terraform to inflate key user metrics to deceive investors. The Chai Misrepresentations : KWON falsely claimed that the Terra blockchain was being used to process billions of dollars in financial transactions for the Korean payment-processing application Chai. In doing so, KWON claimed that the Terra blockchain had “real world” applications or uses, as distinct from competing cryptocurrency platforms. But as KWON knew, Chai processed transactions through traditional financial processing networks, not the Terra blockchain. The Genesis Coin Misrepresentations : KWON made misrepresentations about the use of a supply of one billion stablecoins programmed into the Terra blockchain at its creation (the “Genesis Stablecoins”), which were purportedly held in reserve for Terraform for certain specified uses. But KWON used at least $145 million worth of Genesis Stablecoins, among other things, to fund fake Chai blockchain transactions and trading bots to manipulate the prices of synthetic assets that Mirror issued. At its peak in the spring of 2022, the total apparent market value of all UST and another Terraform cryptocurrency, LUNA, exceeded $50 billion. Much of this growth followed KWON’s misrepresentations about Terraform and its technology, including efforts in May 2021 by KWON and his associates to secretly manipulate the market for UST. By May 2022, the UST market was approximately nine times larger in terms of market capitalization and more than eight times larger in terms of daily trading volume relative to May 2021. In May 2022, UST’s peg began to break down as it had a year prior. While KWON was able to cover up the weaknesses of the Terra Protocol in May 2021, he was not able to do so in May 2022. As a result, the value of UST and LUNA crashed and investors suffered over $40 billion in losses. After the crash of UST and LUNA in May 2022, KWON caused the distribution of a misleading “third party audit” report to cover up his crimes, and sought to launder the proceeds of his fraud through different blockchains, cryptocurrency exchanges, and a Swiss bank account. On or about March 23, 2023, KWON was arrested in Europe for trying to use a fraudulent passport to travel to a country that did not have an extradition treaty with the U.S. KWON was previously charged in this District in an initial Indictment on March 23, 2023. * * * KWON, 33, a citizen of the Republic of Korea, is charged with two counts of commodities fraud, each of which carries a maximum sentence of 10 years in prison; two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; two counts of conspiracy to commit commodities fraud, securities fraud, and wire fraud, each of which carries a maximum sentence of five years in prison; and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison. In aggregate, KWON faces a maximum sentence of 130 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Gitner praised the investigative and operational work of the FBI. He also thanked Jason Cunningham and Goran Krnaich of the Department of Justice’s Office of International Affairs, Interpol, and the Ministry of Justice, Supreme State Prosecutor’s Office, Special State Prosecutor’s Office, and Police Directorate of Montenegro for their assistance in the extradition of the defendant. Mr. Gitner further thanked the U.S. Securities and Exchange Commission, which previously filed a separate civil action against KWON, and the Commodity Futures Trading Commission. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jared Lenow, Kimberly Ravener, and Andrew Thomas are in charge of the prosecution. [1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.


title: USAO Forfeits More Than $7M in Criminal Assets in FY24,  with More Than $50M of Assets Still Pending

component: USAO - Ohio, Northern

body_text: CLEVELAND – The U.S. Attorney’s Office (USAO) for the Northern District of Ohio forfeited $7,701,470 in criminal assets for fiscal year 2024 (FY24). The total forfeited assets were from investigations throughout the District’s 40 northern counties in the state of Ohio. The District’s headquarters is located in Cleveland, with branch offices in Akron, Toledo, and Youngstown. At the end of FY24, the USAO had more than $50 million of assets still pending forfeiture orders in cases districtwide. They included items such as cash, cryptocurrency, vehicles, real estate, and jewelry. These assets were acquired from 214 cases brought under the three types of federal forfeiture proceedings, which include criminal, civil judicial, and administrative. Criminal forfeiture involves personal assets used in conjunction with a crime and is included as part of a defendant’s sentence. Civil judicial forfeiture concerns assets derived from or used in criminal activity. Administrative forfeiture involves assets for whom no one has filed a claim contesting the seizure. Because of the time it can take to process appeals, payments to victims can stem from previous fiscal years. In FY24, a total of $11,077,758 of forfeited funds were earmarked for return to crime victims to whom defendants owed restitution. Some of the forfeited assets were deposited into the Department of Justice Asset Forfeiture Fund (AFF), which was established in 1984 by the Comprehensive Crime Control Act. The AFF is used to restore funds to crime victims and pay expenses associated with forfeiture operation, such as asset management, storage, protection, and disposal. It is also used for a variety of law enforcement purposes. Other assets seized were deposited into the Treasury Asset Forfeiture Fund, which functions in a similar way to the AFF. In addition, a portion of each fiscal year’s forfeited funds are authorized to be shared with local law enforcement agencies that contributed time and resources to federal investigations. In FY24, $10,523,635 was shared across 83 agency partners in the Northern District of Ohio, as well as other districts, for supporting federal prosecution efforts to fight crime. “Asset forfeiture is a vital tool that we use to punish criminals and financially deter, disrupt, or dismantle criminal activity and criminal organizations. When we take the assets used to commit, or gained as the result of crime, we deprive criminals of the tools they need to engage in criminal activity and, indeed, their reason for committing such crimes in the first place. Additionally, forfeiting criminal assets allows us to return money lost by victims who were scammed by criminals in deceitful and fraudulent schemes or otherwise harmed by crime,” said Rebecca Lutzko , United States Attorney for the Northern District of Ohio. “The amount of assets forfeited this year and still pending forfeiture by the court far exceeds our annual office budget. We take pride in returning such significant amounts of money to our community and constituents from the work that our office undertakes.” Cases with significant forfeitures in FY24 include the following: United States v. Christen Clark Clark pled guilty to federal drug and gun violations. During a search warrant execution, agents seized six kilograms of cocaine, two kilograms of fentanyl, 50 pounds of marijuana, and six handguns. The USAO forfeited $1,004,496 and a 2021 Chevrolet Tahoe from Clark. United States v. Rocco Ferruccio Defendant pled guilty to illegal gambling operations in Canton. The USAO forfeited $1,118,442 seized from Ferruccio’s residence. United States v. Christos Karasarides Related to the Ferruccio case, Karasarides was convicted of illegal gambling operations in Canton. The USAO forfeited $419,768 in U.S. currency. Karasarides’ residence was also determined to have been acquired with gambling proceeds and forfeited. United States v. $774,830 in U.S. Currency During an Ohio Highway Patrol traffic stop, a K-9 alerted to the trunk of a defendant’s rental car, and U.S. Currency was seized from a suitcase in the trunk. The defendant declined to provide the source of the currency. The USAO forfeited a total of $774,830. United States v. Kevin Clay Clay was found guilty of healthcare fraud and agreed to the USAO’s forfeiture of approximately $539,770 in proceeds of his fraud, along with the forfeiture of a home purchased with fraud proceeds. But, as alleged in a pending indictment, before the government took possession of his home, Clay instructed his wife to remove fixtures and appliances from it to sell, profiting about $5,000. In the process, his wife caused more than $20,000 in damage to the home and the government subsequently charged the couple with destruction or removal of property to prevent seizure. United States v. 947,883 Tether (“USDT”) In this elder fraud case, on Nov. 26, 2024, the United States filed a civil complaint in forfeiture against 947,883 Tether (“USDT”) cryptocurrency, valued at approximately $947,883. At the time the asset was frozen, the cryptocurrency address had a balance of 947,883 USDT, valued at approximately $947,883. If successful in this forfeiture action, the United States would seek to return these stolen funds to the victim of the scheme. Claims made in the Complaint in Forfeiture are allegations that the United States will need to prove should the case proceed to trial. All defendants are presumed innocent and entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. The mission of the Department of Justice Asset Forfeiture Program (AFP) is to use asset forfeiture as a tool to deter, disrupt, and dismantle criminal enterprises, denying them the proceeds and the instruments of criminal activity. The AFP involves federal, state, tribal, and local law enforcement agencies across the country.


title: Virginia Beach doctor agrees to $625,000 False Claims Act settlement

component: USAO - Virginia, Eastern

body_text: NORFOLK, Va. – Dr. Scott Saffold, of Virginia Beach, and his practice, Chesapeake Bay, ENT, P.C. (Chesapeake Bay), located in Belle Haven, have agreed to pay $625,000 to settle a civil fraud case that claimed Dr. Saffold and his medical practice engaged in the routine and systematic practice of falsely billing government health care programs. The United States and the Commonwealth of Virginia alleged that Saffold and Chesapeake Bay billed federal and state payors for balloon sinus dilations that were not medically necessary. The government alleged that Saffold and Chesapeake Bay performed these surgeries on six sinuses for many patients even when there was no medical indication of need in some or all dilated sinuses. The government further alleged that Saffold and Chesapeake Bay staged these procedures, performing each side at separate times, to increase reimbursement from government payors and without any medical justification. The government also alleged that Saffold and Chesapeake Bay routinely billed government payors for endoscopies with sphenoid sinusoscopy under Current Procedural Terminology Code 31235 when they were not actually performing that code. The settlement arises in connection with a lawsuit filed under the whistleblower provision of the False Claims Act. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual filing a complaint under seal in the U.S. District Court and providing a copy of the complaint and evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery. The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; Health and Human Services Office of Inspector General; Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and the Commonwealth of Virginia’s Office of the Attorney General. The matter was handled by Assistant U.S. Attorney Clare Wuerker and Senior Assistant Attorney General Kristin Gray and Assistant Attorney General Airen Adamonis from the Virginia Medicaid Fraud Control Unit. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia . Case records may be found on PACER under case number 2:18cv435. The civil claims settled are allegations only; there has been no determination of civil liability.


title: New Haven Psychiatrist to Pay More Than $450K to Settle False Claims Act and Controlled Substances Act Allegations

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and Connecticut Attorney General William Tong today announced that NAIMETULLA AHMED SYED, M.D. has entered into a civil settlement agreement with the federal and state governments and agreed to pay $455,439.26 to resolve allegations that he violated the federal and state False Claims Acts and the civil provisions of the Controlled Substances Act (“CSA”) relating to his issuance of medically unnecessary controlled substances prescriptions. Syed is licensed as a doctor of psychiatry and was the sole practitioner at his medical offices in Danbury and New Haven. It is alleged that, between June 2016 and June 2021, Syed issued medically unnecessary prescriptions – including prescriptions for controlled substances – for which Syed caused false claims to be submitted by Cornerstone Pharmacy, Inc. (doing business as “Whalley Drug”) in New Haven to Medicare and Medicaid for those medically unnecessary prescriptions. Syed also billed Medicare and Medicaid for medically unnecessary office visits related to those medically unnecessary prescriptions. In addition, it is alleged that Syed issued prescriptions for controlled substances without a legitimate medical purpose and not in the usual course of professional practice, in violation of Syed’s obligations under the CSA. Syed issued prescriptions for excessive and unsafe amounts of benzodiazepines; for controlled substances to individuals displaying red flags of abuse, addiction, or diversion, including to individuals who received dangerous combinations of controlled substances (including the high-risk “holy trinity” drug combination of at least one opioid, benzodiazepine, and a muscle relaxant); and to an individual for buprenorphine, a synthetic opioid that can be used to treat opioid use disorders, at the same time that this individual was receiving oxycodone and hydrocodone from other providers. He also failed to maintain adequate treatment records, and maintained patient files devoid of any information documenting an examination or reasons for the prescriptions, or establishing a doctor-patient relationship. On June 16, 2021, Syed voluntarily surrendered his DEA licenses. In addition to making payment of $455,439.26 under the civil settlement agreement, Syed agreed to a 20-year exclusion from Medicare, Medicaid, and all other federal health care programs, as well as a 20-year suspension from the Connecticut Medical Assistance Program. Syed also entered into an agreement with the Connecticut Department of Public Health in which he agreed to cease the practice of medicine as of November 25, 2024, and to not renew his physician license, which expires this month. In 2016, Syed paid $422,641.70 to resolve federal and state allegations that he submitted false claims for psychotherapy services to Medicare and Medicaid. In April 2024, Cornerstone Pharmacy (d/b/a Whalley Drug) and its owner, Yong Kwon, paid $120,000 to resolve allegations that they violated the CSA by filling invalid prescriptions. Kwon voluntarily surrendered the DEA license for Whalley Drug, which no longer operates as a retail pharmacy, on June 22, 2021, after the DEA’s execution of an Administrative Inspection Warrant. This investigation was conducted by the Office of Inspector General for the Department of Health and Human Services, DEA’s Office of Diversion Control, and the DEA New Haven’s Tactical Diversion Squad, with the assistance of the Connecticut Department of Consumer Protection, Drug Control Division. This case was prosecuted by Assistant U.S. Attorneys Sarah Gruber and David Nelson, and by Deputy Associate Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General. People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.


title: Colebrook, New Hampshire Man Charged with Possession of Child Sexual Abuse Materials

component: USAO - Vermont

body_text: Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on December 19, 2024, a federal grand jury returned an indictment charging Joshua Hartness, age 45, of Colebrook, New Hampshire, with possession of child sexual abuse materials (CSAM). Hartness entered a plea of not guilty to the charges during an arraignment on December 20, 2024 before United States Magistrate Judge Kevin J. Doyle. Judge Doyle ordered that Hartness be released on conditions. According to the indictment, Hartness allegedly possessed one or more images of CSAM between May 22 and August 26 in 2022. The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Hartness is presumed innocent until and unless proven guilty. Hartness faces up to 20 years in prison if convicted. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors. The prosecutor is Assistant United States Attorney Colin Owyang. Hartness is represented by Assistant Federal Public Defender Barclay Johnson. 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’s Child Exploitation and Obscenity Section(CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC .


title: Boston Man Sentenced for Carrying Loaded Firearm at MBTA Station in Boston

component: USAO - Massachusetts

body_text: BOSTON – A Boston man was sentenced today for illegally carrying a loaded pistol. The defendant, a felon who also possessed armor-piercing ammunition, was identified when his online purchasing history showed that he was acquiring firearm accessories and various chemicals that could create incendiary or explosive compounds. Pepo Herd El a/k/a Pepo Wamchawi Herd, 51, of Dorchester, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served plus 10 days – approximately 49 months in prison, to be followed by three years of supervised release. In December 2024, Herd El pleaded guilty to two counts of being a felon in possession of a firearm and ammunition. Herd El was arrested on Thanksgiving Day 2020 and has been in custody since. Approximately one year preceding his arrest, Herd El made online firearms-related purchases, including a laser sight, magazines and a concealable holster. Herd El also purchased extended magazine plates, which allow magazines to hold more rounds and a Glock firing pin safety which reduces the force required to pull the trigger. According to court documents, Herd El adhered to the sovereign citizen ideology, which is generally considered anti-government and anti-authority. On Nov. 26, 2020, Herd El took a bus from his home in Dorchester to the Ruggles MBTA station. At Ruggles, Herd El was detained and searched pursuant to a search warrant. A loaded semi-automatic pistol, a laser sight, three spare magazines, 45 rounds of ammunition, a knife and an infrared camera were recovered during the search. Herd El was also wearing a bullet-proof vest and a jacket that had “security” written on it. He told law enforcement officers that he was on his way to Thanksgiving dinner. During a subsequent search of Herd El’s residence, another magazine loaded with armor-piercing rounds was recovered well as various drawings of gun barrel designs, firearm suppressors and bullets were on the walls. Various tools that could manufacture ammunition, a chemistry book containing handwritten notes about materials needed to make TNT and C-4 were also found. Due to several 2004 state convictions for possessing firearms without permits and other crimes, Herd El is prohibited from possessing firearms and ammunition. United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Valuable assistance was provided by the Boston Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Amanda Beck and Timothy Kistner of the National Security Unit prosecuted the case. Assistant U.S. Attorney Benjamin Tolkoff of the Criminal Division also assisted in the prosecution.


title: Philadelphia Men Sentenced to Prison for 2022 Armed Robbery, Shooting of Victim in West Philadelphia

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

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Naim Newsome-Bostick, 27, and Nadir Gray, 22, both of Philadelphia, Pa., have been sentenced to prison by United States District Court Judge Mark A. Kearney, for one count of attempted Hobbs Act robbery. Judge Kearney sentenced Newsome-Bostick today to 160 months in prison, three years of supervised release, and a $100 special assessment, and, in December, sentenced Gray to 92 months in prison, three years of supervised release, and a $100 special assessment. Newsome-Bostick and Gray were charged by superseding indictment in September 2023. In July of last year, both pleaded guilty to robbing a man they believed to be a marijuana dealer on September 14, 2022, in West Philadelphia. As part of their plea, the defendants admitted that the robbery was carried out at gunpoint. Newsome-Bostick and Gray forced the victim into their vehicle at gunpoint, then robbed him of his Rolex watch, wallet, and $3,000. As the defendants drove around, the victim began resisting and fighting with one of the men in the back. Amid the commotion, the defendants’ vehicle crashed into a parked car. Newsome-Bostick shot the victim three times, then he and Gray fled the scene. Philadelphia police officers responded and transported the victim to hospital, where he was treated, eventually recovering from his wounds. Newsome-Bostick was arrested later that day by the Philadelphia Police Department and Gray was arrested in September 2023 by the Bureau of Alcohol, Tobacco, Firearms and Explosives. “Anyone who thinks they can carry out an armed robbery in this city and get off scot-free should take a good look at this case,” said U.S. Attorney Romero. “My office, the ATF, and the Philadelphia Police Department will continue to prioritize and prosecute these violent crimes — no matter who the victim may be — and we’ll see to it that the perpetrators are held accountable.” “For the sake of some cash and a watch, these criminals kidnapped their victim at gun point, threatened his life, and shot him three times!" said Eric DeGree, Special Agent in Charge of the ATF's Philadelphia Field Division. “The victim is lucky to be alive, and the defendants are lucky to not be facing murder charges. Working with our law enforcement partners, ATF will continue to bring justice for the victims of violent crime and help make our communities safer for all.” This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the ATF and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Robert E. Eckert and Jason D. Grenell.


title: Duo Sentenced for Armed Robberies in Forsyth and Randolph Counties

component: USAO - North Carolina, Middle

body_text: GREENSBORO – Two Anson County residents who pleaded guilty to Hobbs Act robberies and firearms charges have been sentenced, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina. In August 2024, BRANDON DRELLE WALL, age 35, of Wadesboro, North Carolina, and WILLIAM CHAVIS DUNLAP, JR., age 29, of Morven, North Carolina, pleaded guilty to robbing a sweepstakes business in Winston-Salem in June 2022, and another in Liberty in August 2022. Each defendant also pleaded guilty to brandishing a firearm during and in furtherance of a crime of violence. WALL was sentenced on October 30, 2024, to consecutive terms of 138 months imprisonment and 84 months imprisonment, plus 5 years supervised release. DUNLAP was sentenced today to consecutive terms of 110 months imprisonment and 84 months imprisonment, plus 5 years supervised release. Both sentencing hearings were held in Greensboro, North Carolina, before United States District Judge William L. Osteen, Jr. In addition to prison time, WALL and DUNLAP were ordered to pay restitution and forfeited their interests in seven firearms plus multiple magazines and rounds of ammunition. According to court documents, WALL and DUNLAP wore masks and threatened employees with guns in an effort to gain access to business safes. During the robbery in Liberty, the defendants also forced patrons to the floor at gunpoint. WALL and DUNLAP took a phone, wallet, $1,400, and two guns in the Winston-Salem robbery. A total of $8,650 was stolen during the Liberty robbery. After his arrest, WALL admitted he also robbed a gas station in Richmond County, and DUNLAP admitted to robbing a discount store in Anson County. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Liberty Police Department, Winston-Salem Police Department, Anson County Sheriff's Office, Richmond County Sheriff's Office, Wadesboro Police Department, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Special Assistant United States Attorney Mary Ann Courtney. ###


title: Repeat Offender Sentenced to 10 Years in Prison for Possessing Child Sexual Abuse Material

component: USAO - Maine

body_text: PORTLAND, Maine: A Lisbon Falls man was sentenced today in U.S. District Court in Portland for possessing child sexual abuse material. U.S. District Judge Nancy Torresen sentenced Joseph Gibson , 36, to 10 years in prison followed by eight years of supervised release. He was also ordered to pay $9,000 in restitution. According to court records, an IP address registered to Gibson’s residence was identified as downloading child sexual abuse material in September and October of 2023 via BitTorrent. In December 2023, the Maine State Police executed a search warrant at the residence, and during an interview, Gibson admitted to viewing child sexual abuse material online. Investigators with Homeland Security Investigations (HSI) analyzed two devices seized from the residence and recovered five video files of children younger than 12 being sexually abused. Gibson has two prior state convictions, in January 2010 and December 2011, relating to possessing and distributing child sexual abuse material. The Maine State Police and HSI investigated the case. To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal terms as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678 . If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741 . Project Safe Childhood: 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’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, visit https://www.justice.gov/usao-me/psc . ###


title: Upper St. Clair Man Who Traveled to Lebanon and Syria with Goal of Joining Hizballah Indicted on Terrorism Offense and for Lying to FBI

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A former resident of Upper St. Clair, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of attempting to support the foreign terrorist organization Hizballah and making false statements involving international terrorism to a department or agency of the United States, United States Attorney Eric G. Olshan announced today. The three-count Indictment names Jack Danaher Molloy, 24, formerly of the Upper St. Clair suburb of Pittsburgh, as the sole defendant. Molloy was previously charged on December 6, 2024, by way of Criminal Complaint with the false statement charges, with much of the conduct underlying the charges in the Indictment set forth in the Complaint Affidavit. Read the full affidavit filed in support of the Criminal Complaint against Molloy here . The Indictment is available here . Molloy was arrested in Chicago, Illinois, on December 6, 2024, and transported by the United States Marshals Service to Pittsburgh on December 30, 2024. As alleged in the Indictment and Complaint Affidavit, from in and around August 2024 through in and around December 2024, in Lebanon, Syria, the Western District of Pennsylvania, and elsewhere, Molloy attempted to provide material support and resources—namely, personnel (including himself) and services—to Hizballah, a foreign terrorist organization (FTO), knowing that the organization was a designated terrorist organization and that the organization had engaged in and was engaging in terrorist activity and terrorism. As outlined in the court documents, Hizballah, also commonly spelled Hezbollah, was formed in the wake of the 1982 Israeli invasion of Lebanon and has conducted numerous terrorist attacks against Israeli and Western targets, including against American military and diplomatic personnel. As alleged, Molloy—a dual citizen of the United States and Ireland, who previously served on active-duty status in the U.S. Army—traveled to Lebanon in August 2024 and attempted to join Hizballah. While in Lebanon, Molloy was told by multiple individuals that the time was not right, and that he needed to take other steps before he could join the terrorist organization. Molloy then traveled from Lebanon to Syria in October 2024 in an effort to fight for Hizballah in Syria. After returning to the United States, Molloy resided in Upper St. Clair, where he continued his attempts to join Hizballah, including through communication with individuals online and in Lebanon. During his time in the United States and abroad, Molloy also allegedly expressed his hatred toward, and promoted violence against, Jewish people. Molloy’s alleged animus toward Jews was also evidenced by multiple images and videos on his electronic devices and the usernames he chose for his social media and email accounts, including the username “KIKEKILLER313” on the social media platform X. In one alleged WhatsApp exchange with a family member, Molloy agreed that his “master plan was to join Hezbollah and kill Jews.” And while he was residing in Upper St. Clair, Molloy also allegedly visited a website detailing the possible incarceration location of Robert Bowers, who carried out the Pittsburgh Tree of Life Synagogue shooting during which he murdered 11 Jewish worshippers. The Indictment further alleges that, upon arriving at the Pittsburgh International Airport on October 20, 2024, Molloy lied to agents of the FBI when he told them (1) that he had no current or future plans to become involved with Hizballah, and (2) that he had no business in, nor was he meeting with anyone, in Syria. These statements and representations were false because Molloy knew at that time that (1) he did have current and future plans to become involved with Hizballah and (2) Molloy travelled to Syria in furtherance of his attempts to join Hizballah, and while in Syria, set up a meeting with an individual there. “As alleged, Jack Molloy, an avowed adherent of Hizballah harboring deep-seated animus against Jews, took many steps over a period of months—at home and abroad—in his effort to join and fight for this deadly foreign terrorist organization,” said U.S. Attorney Olshan. “This case is yet another sobering reminder of the threat of radicalized violence against Americans. And while the defendant appears to have worked hard to achieve his terrorist goals, today’s charges demonstrate that the resolve of our office and our partners in law enforcement is stronger. We will continue working every day to ensure that members of the Jewish community and every other community in this country can live their lives without fear that they will be targeted by a hate-fueled terrorist attack.” “The FBI’s number one priority is to protect the American people from both domestic and international terrorist threats,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “To achieve that end, the FBI will leverage the entirety of our resources, partnerships, and all applicable laws to bring to justice anyone who seeks to support or aid any foreign terror organizations, especially groups as deadly as Hizballah.” The maximum sentence for the material support offense is a term of imprisonment of 20 years, a fine of $250,000, or both. Each of the false statement charges carries a maximum sentence of eight years in prison, a $250,000 fine, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Nicole Vasquez Schmitt and Trial Attorney Andrew Briggs of the National Security Division’s Counterterrorism Section are prosecuting this case on behalf of the government. The Pittsburgh and Chicago offices of the Federal Bureau of Investigation conducted the investigation leading to the Indictment, with substantial assistance following Molloy’s arrest on the Criminal Complaint from the United States Marshals Service. An indictment and a criminal complaint are accusations. A defendant is presumed innocent unless and until proven guilty.


title: U.S. Attorney, FBI Announce Federal Charges Against Arizona Man for Sexual Abuse

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE – A Phoenix man has been charged with two counts of aggravated sexual abuse of a child under 12 years old. The indictment alleges that between January 1, 2019, and December 31, 2019, Jeremy Blueeyes , 25, a member of the Navajo Nation, unlawfully and knowingly engaged in and attempted to engage in sexual acts with a child who had not yet attained the age of 12 years. Blueeyes will remain in custody pending trial, which has not been scheduled . If convicted, Blueeyes faces a minimum of 30 years and up to life in prison. U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today. The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Nation Department of Criminal Investigations. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case. View the Indictment (Blueeyes).pdf An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. # # #


title: U.S. Attorney’s Office Credits Multi-Jurisdictional Crime Reduction Collaborative for Sharp Decline in Violent Crime Across Maryland

component: USAO - Maryland

body_text: Baltimore , Maryland – Today, the U.S. Attorney’s Office for the District of Maryland announced that statewide violent crime continued to significantly decline in 2024. In Maryland, homicides and non-fatal shootings are down, and Baltimore City’s violent-crime rate dropped for the third year in a row. Since 2021, statewide homicides have declined by 32 percent while Baltimore City, which saw 201 homicides in 2024, has recorded a 41-percent decrease during the same timeframe. The U.S. Attorney’s Office credits strategic collaboration between Federal, State, City law enforcement, and community partners for the positive direction. “I’m very proud of the leadership that this office’s public servants have shown in coordinating law enforcement and community efforts throughout Maryland and beyond to protect our nation and promote safer communities,” said U.S. Attorney Erek L. Barron. “We will continue to be a force-multiplier for the work of our various Federal, State, and local law enforcement agencies, and community-based partners.” These efforts are connected to the Department of Justice’s Project Safe Neighborhoods (PSN) . This program brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make neighborhoods safer for everyone. Recent results show how the power of strong collaborations correlate with major declines in violence, as Baltimore City recorded its lowest homicide total since 2011. For example, in Baltimore City, the multi-jurisdictional collaborative has: Assembled the largest-ever, State-funded team of special federal prosecutors, and legal and investigative professionals to indict firearm offenses. In 2023, this enabled the U.S. Attorney’s Office to adopt a record-high number of gun cases from the Baltimore City State’s Attorney’s Office. Strategically investigated and federally prosecuted repeat violent offenders, who drive the most violence in our communities, by any legal means necessary. This tactic has led to impactful prosecutions. For example, the collaborative shut down an international Chinese money laundering and drug trafficking organization after investigating one of its ringleaders who was shot at twice within a two-week span of violence in Baltimore City. Leveraged the U.S. Attorney’s Office’s multi-agency taskforce to not only federally prosecute violent criminal organizations, but to also help local partners land impactful prosecutions. For example, through Operation Tornado Alley , the largest takedown in Baltimore in decades, the State’s Attorney’s Office charged 40 individuals with drug trafficking and firearm offenses. Through these strategic, collaborative efforts, the office has reduced costly and unnecessary incarceration. The collaborative’s use of strategic law enforcement, along with various prevention and intervention methods, has resulted in a 40-percent decline in the federal pre-trial detention rate since 2018. For example, the U.S. Attorney’s Office actively supports reducing barriers to successful reentry and collaborative community-based outreach efforts aimed at youth and young adults, including by working with organizations such as ROCA Baltimore . For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: U.S. Attorney's Office Secures Sentencing of Mexican National for Attempted Aircraft Destruction and Drug Trafficking

component: USAO - New Mexico

body_text: ALBUQUERQUE – A Mexican national was sentenced to 117 months in prison and ordered to pay a $600 special assessment for attempting to destroy an unmanned aerial system and federal drug trafficking offenses in New Mexico. According to court documents, on July 3, 2023, officers from the Albuquerque Police Department tracked Rogelio Rodriguez-Salas , 29, a Mexican national who had previously been deported and was illegally present in the United States, by using a drone while he was in possession of a stolen vehicle. In an attempt to evade surveillance, Rodriguez-Salas fired a handgun at the drone to damage and disable it. Following this incident, he was arrested but subsequently released into the community. Weeks later, on July 21, 2023, deputies from the Bernalillo County Sheriff's Department encountered Rodriguez-Salas again. He was found in possession of a revolver while engaged in drug trafficking activities and driving another stolen vehicle. At that time, he had more than four grams of fentanyl intended for distribution when stopped by deputies. His illegal presence in the U.S. prohibited him from possessing both firearms and ammunition. On July 15, 2024, Rodriguez-Salas pleaded guilty to multiple charges: attempting to damage, destroy, disable, and wreck an aircraft; being a prohibited person in possession of a firearm and ammunition; re-entering the United States as a removed alien; possessing with intent to distribute four grams or more of fentanyl; and possessing a firearm to further a drug trafficking scheme. Upon his release from prison, Rodriguez-Salas will be subject to three years of supervised release and subject to deportation proceedings. U.S. Attorney Alexander M.M. Uballez made the announcement today. The U.S. Department of Transportation, Office of Inspector General conducted this investigation with the Albuquerque Police Department and U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. This case is being prosecuted by the U.S. Attorney’s Office for the District of New Mexico. # # #


title: U.S. Attorney’s Office’s Collection and Enforcement Efforts Exceed $40 Million in Fiscal Year 2024

component: USAO - Kentucky, Eastern

body_text: LEXINGTON, Ky. – United States Attorney Carlton S. Shier, IV announced today that, in the fiscal year ending September 30, 2024, the U.S. Attorney’s Office for the Eastern District of Kentucky collected more than $20 million for crime victims and taxpayers, and also obtained civil settlements totaling more than $20 million through its affirmative civil enforcement efforts. “Our enforcement of the law includes pursuing restitution for victims of crime, recovering illegally obtained funds, and protecting taxpayer dollars from fraud, waste, and abuse,” said United States Attorney Shier. “These collection and enforcement results demonstrate our commitment to these critical goals. I want to commend the dedicated personnel in our Office, for their persistent efforts on behalf of victims and for safeguarding our taxpayer funds.” In fiscal year 2024, the U.S. Attorney’s Office collected $14,299,361.43 through its Financial Litigation Program. This Program is responsible for collecting civil and criminal debts owed to the United States, and criminal restitution debts owed to federal crime victims who have suffered a physical injury or financial loss. While criminal restitution is paid to victims, criminal fines and assessments are paid to the Department of Justice’s Crime Victims Fund, which distributes the funds to federal and state victim compensation and victim assistance programs. Additionally, due to successful asset forfeitures in fiscal year 2024, the U.S. Attorney’s Office secured $4,161,490 for federal law enforcement efforts, shared $1,508,364 with state and local law enforcement agencies, and restored $472,830 to crime victims. In asset forfeiture actions, the United States seizes money and property that were proceeds of crime or used in furtherance of a crime. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used for a variety of law enforcement purposes. Funds shared with state and local agencies reflect the degree of their participation in law enforcement efforts resulting in forfeiture. When money or property is forfeited by a defendant who also owes restitution, the Office can ask that the value of the forfeited property be paid to the victim to make him or her whole. The Office’s Civil Division also protects the interests of the United States in cases involving property on which the government holds a lien. In fiscal year 2024, the Office collected $1,382,137.49 on behalf of taxpayers in such cases. Finally, the U.S. Attorney’s Office’s Affirmative Civil Enforcement program obtained civil settlements and judgments valued at $20,078,263.98. Over $19.7 million of this amount were obtained through enforcement of the False Claims Act, which is a federal law that imposes treble damages and penalties on those who knowingly and falsely claim money from the United States. The False Claims Act thus serves to safeguard government programs that provide health insurance, support American businesses and workers, offer disaster and other emergency relief, and provide many other critical services and benefits. More than $300,000 of the settlements represent civil penalties paid by healthcare providers who violated the Controlled Substances Act, a federal law that aims to protect the public’s health and safety from dangers posed by highly addictive or dangerous controlled substances that are diverted into the illicit market. The remainder of these settlements result from penalties and compensatory damages paid for violations of the American with Disabilities Act, a federal law that protects people with disabilities from discrimination in many areas of public life. – END –


title: St. Peters Man Sentenced to 14 Years in Prison for Selling Fentanyl that Killed One Woman, Hospitalized Another

body_text: ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Thursday sentenced a man who sold the fentanyl that killed one woman and sent another to the hospital in one day in 2019 to 14 years in prison. Zachary Hovis, 24, provided fentanyl to an 18-year-old woman in the parking lot of a country club in Weldon Spring, Missouri on Nov. 16, 2019. The victim, who was Hovis’ close friend, drove to the parking lot of a nearby business, where she was found unconscious about an hour and 15 minutes later. She died despite a bystander’s attempt to administer naloxone. A medical examiner later determined that the immediate cause of the victim’s death was fentanyl intoxication. Later that day, Hovis supplied fentanyl to another person who reported that she thought she was buying the painkiller oxycodone. That woman later went to the hospital, believing she was overdosing. She was treated and released. In court Thursday, Assistant U.S. Attorney Tiffany Becker said Hovis advertised drugs for sale on social media, posted pictures of his cash profits, reached out to the 18-year-old offering drugs on the day that she died and continued to sell drugs after the death of his friend. “The sentencing of a man who dealt drugs and killed someone brings some justice to the victim’s family and friends,” said Assistant Special Agent in Charge Colin Dickey, head of Drug Enforcement Administration operations in Eastern Missouri. “Overdose death cases are difficult to prove. Fortunately, we have great partners like the St. Charles County Drug Task Force and other state and local partners, and this kind of end result is our reward for the hard work.” Hovis pleaded guilty in June in U.S. District Court in St. Louis to two counts of distribution of fentanyl. The Drug Enforcement Administration and the St. Charles County Drug Task Force investigated the case. Assistant U.S. Attorneys Tiffany Becker and Cassandra Wiemken prosecuted the case.


title: New York Man Sentenced for Violating Federal Sex Offender Registration and Notification Act

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Elliot J. Santiago, 25, of Brooklyn, New York, was sentenced today to time served and five years of supervised release for failure to provide information related to interstate travel as required by the Sex Offender Registration and Notification Act (SORNA). According to court documents and statements made in court, Santiago was required to comply with the provisions of SORNA because of his conviction for first-degree sexual abuse in Monongalia County Circuit Court on August 28, 2019. From on or about May 30, 2023 to on or about October 25, 2023, Santiago failed to provide notification that he had traveled from Charleston, West Virginia, to Toledo, Ohio and then to Brooklyn, New York. United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS). Santiago served approximately one year and two months in custody. United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case. SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006 and provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA seeks to strengthen the nationwide network of sex offender registration and notification programs, in part by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-174. ###


title: Leadership Transition at U.S. Attorney’s Office for the District of Colorado

component: USAO - Colorado

body_text: Denver – The United States Attorney’s Office for the District of Colorado announces that United States Attorney Matthew T. Kirsch and Deputy United States Attorney Andrea Wang are resigning their positions effective no later than midnight on January 25, 2025. “I’ve been incredibly honored to serve the United States and the people of Colorado through over twenty-five years of work at the Department of Justice. I will be forever grateful for the opportunity to work with my colleagues here and to lead this office,” said United States Attorney Matt Kirsch. “The office will continue to be led by highly accomplished and experienced attorneys, and I am confident they will carry on the office’s long-standing commitment to justice in the District of Colorado.” Mr. Kirsch has accepted the position of First Assistant District Attorney with the Denver District Attorney’s Office. First Assistant U.S. Attorney J. Bishop Grewell will serve as Acting United States Attorney upon the effective date of Mr. Kirsch’s resignation. Mr. Grewell joined the Department of Justice in 2010 and has been with the District of Colorado since 2013. He currently serves as Chief of the Appellate Division. President-Elect Donald Trump is expected to nominate a new United States Attorney for the District of Colorado in the coming months.


title: Do Kwon Extradited to the United States from Montenegro to Face Charges Relating to Fraud Resulting in $40B in Losses

component: Office of the Attorney General

body_text: Do Hyeong Kwon, 33, a citizen of the Republic of Korea, was extradited from Montenegro and appeared in court today in Manhattan to face federal fraud charges. A superseding indictment that was unsealed against Kwon alleged that the co-founder and former chief executive officer of Terraform Labs PTE Ltd. (Terraform) engaged in multiple schemes to deceive investors in order to fraudulently inflate the value of Terraform’s cryptocurrencies. Kwon arrived in the United States on Dec. 31, 2024, and made his initial appearance before U.S. Magistrate Judge Robert W. Lehrburger for the Southern District of New York. Kwon’s case is assigned to U.S. District Court Judge John P. Cronan, and will appear before Judge Cronan for an initial conference on Jan. 8 at 10:30 a.m ET. “Do Hyeong Kwon will now be held accountable in an American courtroom for, as alleged in court documents, his elaborate schemes involving Terraform’s cryptocurrencies, which resulted in over $40 billion in investor losses,” said Attorney General Merrick B. Garland. “We secured this extradition despite Kwon’s alleged attempt to cover his tracks by laundering proceeds of his schemes and trying to use a fraudulent passport to travel to a country that did not have an extradition treaty with the United States. This extradition from Montenegro is an example of the Justice Department’s international partnerships, which enable the pursuit of criminals wherever they attempt to hide.” “A federal grand jury has indicted Do Kwon for misleading his investors in order to fraudulently inflate the value of Terraform’s cryptocurrencies, and laundering the proceeds of his crimes,” said Attorney for the United States Daniel M. Gitner for the Southern District of New York. “As we allege, this fraud and the crash of Terraform’s cryptocurrencies in May 2022 erased over $40 billion in investor assets, causing devastating losses to countless investors in the United States and around the world. Kwon will now face justice in a federal courtroom in Manhattan.” “Do Kwon, co-founder and former CEO of Terraform, allegedly defrauded investors by falsely advertising the company’s blockchain products as decentralized, reliable, and effective, and by engaging in market manipulation, ultimately resulting in more than $40 billion in investor losses,” said Assistant Director in Charge James E. Dennehy of the FBI New York Field Office. “For at least four years, Kwon allegedly played puppet master to maintain this crafted illusion and ensnare investors. The FBI will tirelessly work to apprehend any individual who engages in fraudulent financial practices, even those who flee internationally to escape prosecution.” As alleged in the superseding indictment, from at least in or about 2018, up to and including in or about 2022, Kwon orchestrated schemes to defraud purchasers of Terraform cryptocurrencies. Among other things, Kwon made false and misleading claims regarding the stability and efficacy of Terraform’s cryptocurrency stablecoin protocol, its use of blockchain technology, and its development of functioning and reliable financial technologies. As Kwon knew, however, core Terraform products did not work as Kwon had claimed. Rather, Kwon manipulated Terraform products to create the illusion of a functioning, stable, and decentralized financial system. Kwon’s conduct inflated the value of Terraform’s cryptocurrencies, which Kwon and entities he controlled possessed in large amounts and sold to investors in exchange for billions of dollars’ worth of other assets. Kwon’s misrepresentations included the following: The Stablecoin Misrepresentations : Kwon made misrepresentations about the effectiveness of the system that lay at the heart of Terraform’s cryptocurrency empire, the “Terra Protocol,” which purportedly used a computer algorithm to maintain the value of Terraform’s so-called “stablecoin” pegged to the U.S. dollar, TerraUSD (UST), at a value of $1 for one UST. But as Kwon knew, after the Terra Protocol failed to cause the restoration of UST’s $1 peg in May 2021, Kwon reached an agreement with executives at a high-frequency trading firm (the Trading Firm) so that the Trading Firm would purchase large amounts of UST in order to artificially support UST’s $1 peg. The LFG Misrepresentations : Kwon made misrepresentations about the governance of the Luna Foundation Guard Ltd. (LFG), which Kwon claimed was managed by an independent governing body and was tasked with deploying billions of dollars’ worth of financial reserves to defend UST’s peg. But as Kwon knew, he controlled both the LFG and Terraform. In addition, Kwon misappropriated hundreds of millions of dollars in assets from the LFG. Kwon and others acting at his direction sought to launder those misappropriated funds through transactions designed to conceal and disguise the nature, location, source, ownership, and control of the funds. The Mirror Misrepresentations : Kwon made misrepresentations about the success and operation of an investing platform on Terraform’s blockchain (the Terra blockchain) called Mirror Protocol (Mirror), that purportedly allowed users to create, buy, and sell synthetic versions of stocks listed on U.S. securities exchanges. Kwon claimed that Mirror operated in a decentralized manner and that he and Terraform played no role in Mirror’s governance. But as Kwon knew, he and Terraform secretly maintained control over Mirror, and used automated trading bots to manipulate the prices of synthetic assets that Mirror issued. Kwon also caused Terraform to inflate key user metrics to deceive investors. The Chai Misrepresentations : Kwon falsely claimed that the Terra blockchain was being used to process billions of dollars in financial transactions for the Korean payment-processing application Chai. In doing so, Kwon claimed that the Terra blockchain had “real world” applications or uses, as distinct from competing cryptocurrency platforms. But as Kwon knew, Chai processed transactions through traditional financial processing networks, not the Terra blockchain. The Genesis Coin Misrepresentations : Kwon made misrepresentations about the use of a supply of one billion stablecoins programmed into the Terra blockchain at its creation (the Genesis Stablecoins), which were purportedly held in reserve for Terraform for certain specified uses. But Kwon used at least $145 million worth of Genesis Stablecoins, among other things, to fund fake Chai blockchain transactions and trading bots to manipulate the prices of synthetic assets that Mirror issued. At its peak in the spring of 2022, the total apparent market value of all UST and another Terraform cryptocurrency, LUNA, exceeded $50 billion. Much of this growth followed Kwon’s misrepresentations about Terraform and its technology, including efforts in May 2021 by Kwon and his associates to secretly manipulate the market for UST. By May 2022, the UST market was approximately nine times larger in terms of market capitalization and more than eight times larger in terms of daily trading volume relative to May 2021. In May 2022, UST’s peg began to break down as it had a year prior. While Kwon was able to cover up the weaknesses of the Terra Protocol in May 2021, he was not able to do so in May 2022. As a result, the value of UST and LUNA crashed and investors suffered over $40 billion in losses. After the crash of UST and LUNA in May 2022, Kwon caused the distribution of a misleading “third party audit” report to cover up his crimes, and sought to launder the proceeds of his fraud through different blockchains, cryptocurrency exchanges, and a Swiss bank account. On or about March 23, 2023, Kwon was arrested in Europe for trying to use a fraudulent passport to travel to a country that did not have an extradition treaty with the United States. Kwon was previously charged in the Southern District of New York in an initial indictment on March 23, 2023. Kwon is charged with two counts of commodities fraud, for which he faces a maximum penalty of 10 years in prison for each count; two counts of securities fraud, for which he faces a maximum penalty of 20 years in prison for each count; two counts of wire fraud, for which he faces a maximum penalty of 20 years in prison for each count; two counts of conspiracy to commit commodities fraud, securities fraud, and wire fraud, for which he faces a maximum penalty of five years in prison for each count; and one count of money laundering conspiracy, for which he faces a maximum penalty of 20 years in prison. If convicted of all charges, Kwon faces a maximum penalty of 130 years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors. The FBI are investigating the case, with assistance from Trial Attorneys Jason Cunningham and Goran Krnaich of the Justice Department’s Office of International Affairs, Interpol, and the Ministry of Justice, Supreme State Prosecutor’s Office, Special State Prosecutor’s Office, and Police Directorate of Montenegro in the extradition of the defendant. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission also assisted in the case. Assistant U.S. Attorneys Jared Lenow, Kimberly Ravener, and Andrew Thomas for the Southern District of New York 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: USAO Collects Nearly $28M in Civil and Criminal Actions for FY 2024

body_text: CLEVELAND - In the fiscal year 2024 (FY 2024), the U.S. Attorney’s Office for the Northern District of Ohio collected $27,882,120.34 in civil and criminal actions. Of this amount, $12,537,202.34 was collected for civil damages, penalties, and interest owed to the United States, while $15,344,918 was collected for criminal restitution to victims of federal crime. In addition to those amounts, the U.S. Attorney’s Office (USAO), working with partner agencies and divisions, also separately forfeited in FY 2024 $7,701,470 in assets connected to criminal activity, with more than $50M in additional assets still pending forfeiture orders. Forfeited assets are deposited into the Department of Justice Asset Forfeiture Fund or the Treasury Asset Forfeiture Fund and used to restore funds to crime victims and for various law enforcement purposes. Accordingly, the U.S. Attorney’s Office collected a combined $35,583,590.34 in FY 2024. “Every year, dedicated USAO employees work hard to collect debts owed to the government based on false claims, environmental damage, controlled-substance violations, and the like, and return that money to the U.S. taxpayers. They also work to recover money for victims of crime to make them whole and ensure that justice is served from a financial perspective,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “The USAO’s FY 2024 collection efforts were tremendously successful, and we remain committed, in 2025 and beyond, to using all available legal remedies to collect restitution for victims and recover taxpayer dollars improperly taken through fraud, waste, and abuse.” Notable collections in FY 2024 include: Civil Cases Cleveland Clinic Foundation – Payment of $7,600,000 to settle False Claims Act allegations relating to federal grant applications and progress reports. That amount is now paid in full. Ohio Refining Co., Chevron USA Inc., Energy Transfer (R&M) LLC, Pilkington North America Inc., and Chemtrade Logistics Inc. – Payment of $7,282,518.92 to settle allegations of historic industrial pollution discharges near Toledo. That amount is now paid in full. Republic Steel – Payment of a civil penalty as part of a consent decree to settle Clean Air Act allegations. Republic Steel paid $1,051,169.49 as part of the consent decree, which also included air pollution reductions. Criminal Cases U.S. v. Aydin Kalantarov – Defendant was sentenced in May 2023 for conspiring to commit wire fraud and aggravated identity theft. The court ordered Kalantarov to pay $7,799,400.00 in restitution to the Small Business Association (SBA). In January 2024, the USAO facilitated the transfer of $5,624,627.21 in forfeited funds to the Clerk of Courts for payment to the SBA. U.S. v. Matthew Maluchnik – Defendant was sentenced in October 2023 for committing healthcare fraud and making false statements on his tax returns. The court ordered him to pay $941,068.50 in restitution. In April 2024, the USAO facilitated the transfer of $715,979.50 in forfeited funds to the Clerk of Courts for payment to Maluchnik’s victims. U.S. v. Christopher Hardin – Defendant was sentenced in September 2019 for committing mail fraud and was ordered to pay $671,699.73 in restitution to over a dozen victims. In FY2024, the USAO collected $655,574.73 from Hardin for his victims. The 94 U.S. Attorneys’ Offices across the country, along with the Department of Justice’s litigating 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.


title: Missoula man sentenced to more than 19 years in prison for trafficking meth, fentanyl in community

body_text: MISSOULA — A Missoula man who admitted to distributing pounds of methamphetamine and thousands of fentanyl pills that were shipped from Washington was sentenced today to 19 years and seven months in federal prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said. The defendant, Alejandro Romero, 36, pleaded guilty in August 2024 to possession with intent to distribute controlled substances. U.S. District Judge Dana L. Christensen presided. “We won’t make progress against our nation’s drug epidemic unless the biggest drug traffickers are held accountable, which we’ve done today. Romero is responsible for peddling pounds and pounds of meth and thousands of fentanyl pills, including pink pills, as well as distributing fentanyl powder. His lengthy federal prison sentence shows we are determined to make the progress Montanans expect and deserve regarding drug traffickers poisoning our communities,” U.S. Attorney Laslovich said. The government alleged in court documents that from December 2023 through March 2024 in Missoula, Romero possessed fentanyl, and meth for distribution. During the sentencing hearing, the court noted that Romero was distributing fentanyl, including pink fentanyl. Pink fentanyl is a more potent form of the drug. One individual purchased approximately two pounds of meth directly from Romero in separate transactions and also purchased fentanyl pills and heroin from him. The individual also witnessed Romero in his hotel room and in possession of thousands of fentanyl pills, pounds of powdered fentanyl, 10 pounds of meth, which is the equivalent of approximately 36,240 doses, and a little more than two pounds of heroin. Another individual received approximately 1,000 fentanyl pills in Washington in a drug transaction that Romero arranged and had fronted the individual $3,000 to obtain the pills. When interviewed Romero admitted that he distributed in Montana large quantities of meth and fentanyl that had been shipped from Washington. The U.S. Attorney’s Office prosecuted the case. The FBI’s Montana Regional Violent Crime Task Force and Missoula Police Department conducted the investigation. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN . XXX


title: Pennsylvania Man Who Traveled to Lebanon and Syria with Goal of Joining Hizballah Indicted on Terrorism Offense and for Lying to FBI

body_text: Jack Danaher Molloy, 24, a former resident of Pittsburgh, Pennsylvania, has been indicted by a grand jury on charges of attempting to support the foreign terrorist organization Hizballah and making false statements involving international terrorism to a department or agency of the United States. Molloy was previously charged by criminal complaint with making false statements on Dec. 6, 2024, with much of the conduct underlying the charges in the indictment set forth in the complaint. Molloy was arrested in Chicago, Illinois, on Dec. 6, 2024, and transported by the U.S. Marshals Service to Pittsburgh on Dec. 30, 2024. As alleged in the indictment and complaint, from in and around August 2024 through in and around December 2024, in Lebanon, Syria, the Western District of Pennsylvania, and elsewhere, Molloy attempted to provide material support and resources—namely, personnel (including himself) and services — to Hizballah, a foreign terrorist organization (FTO), knowing that the organization was a designated terrorist organization and that the organization had engaged in and was engaging in terrorist activity and terrorism. As outlined in the court documents, Hizballah, also commonly spelled Hezbollah, was formed in the wake of the 1982 Israeli invasion of Lebanon and has conducted numerous terrorist attacks against Israeli and Western targets, including against American military and diplomatic personnel. As alleged, Molloy — a dual citizen of the United States and Ireland, who previously served on active-duty status in the U.S. Army — traveled to Lebanon in August 2024 and attempted to join Hizballah. While in Lebanon, Molloy was told by multiple individuals that the time was not right, and that he needed to take other steps before he could join the terrorist organization. Molloy then traveled from Lebanon to Syria in October 2024 in an effort to fight for Hizballah in Syria. After returning to the United States, Molloy resided in Upper St. Clair, where he continued his attempts to join Hizballah, including through communication with individuals online and in Lebanon. During his time in the United States and abroad, Molloy also allegedly expressed his hatred toward, and promoted violence against, Jewish people. Molloy’s alleged animus toward Jews was also evidenced by multiple images and videos on his electronic devices and the usernames he chose for his social media and email accounts, including the username “KIKEKILLER313” on the social media platform X. In one alleged WhatsApp exchange with a family member, Molloy agreed that his “master plan was to join Hezbollah and kill Jews.” And while he was residing in Upper St. Clair, Molloy also allegedly visited a website detailing the possible incarceration location of Robert Bowers, who carried out the Pittsburgh Tree of Life Synagogue shooting during which he murdered 11 Jewish worshippers. The indictment further alleges that, upon arriving at the Pittsburgh International Airport on Oct. 20, 2024, Molloy lied to agents of the FBI when he told them (1) that he had no current or future plans to become involved with Hizballah, and (2) that he had no business in, nor was he meeting with anyone, in Syria. These statements and representations were false because Molloy knew at that time that (1) he did have current and future plans to become involved with Hizballah and (2) Molloy travelled to Syria in furtherance of his attempts to join Hizballah, and while in Syria, set up a meeting with an individual there. If convicted, Molloy faces a maximum penalty of 20 years in prison for material support charge. For false statement charges, he faces a maximum penalty of eight years in prison, a $250,000 fine, or both. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI Pittsburgh and Chicago Field Offices are investigating the case with substantial assistance from the U.S. Marshals Service. Assistant U.S. Attorney Nicole Vasquez Schmitt of the Western District of Pennsylvania and Trial Attorney Andrew Briggs of the National Security Division’s Counterterrorism Section are prosecuting the case. An indictment and criminal complaint are merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: U.S. Attorney’s Office Reaches Agreement with Ellsworth Veterinarian for Alleged Controlled Substances Act Violations

component: Drug Enforcement Administration (DEA)

body_text: PORTLAND, Maine: A Maine veterinarian, Dr. Alan Toothaker, DVM, agreed to pay $145,360 to resolve claims he violated the Controlled Substances Act through improper storage of controlled substances and recordkeeping violations. The settlement announced today resolves allegations that Dr. Toothaker improperly stored controlled substances; failed to keep appropriate records of controlled substances stored, dispensed, or distributed by the veterinary practice; and did not conduct regular inventories. As alleged, in May 2023 and July 2023, the U.S. Drug Enforcement Administration (DEA) was unable to conduct an audit at Dr. Toothaker’s registered location due to record keeping deficiencies. Among the issues the resulting inspection revealed: Minimal oversight of the ordering, receiving, and handling of controlled substances, creating an opportunity for significant diversion of controlled substances, particularly Tramadol. Controlled substances stored in safes with non-controlled substances with employees having unsupervised access. Incomplete recordkeeping resulting in unaccounted-for controlled substances purchased, dispensed, or administered. Continual refills of prescriptions. Transferring of controlled substances to a second practice location for which Dr. Toothaker did not maintain a registration. “The DEA investigation revealed a practice that lacked adequate security and oversight, making it difficult, if not impossible, to determine whether controlled substances were missing, who took them or even when they went missing,” said U.S. Attorney Darcie N. McElwee . “Particularly amid an opioid crisis, that is concerning. All DEA registrants have an obligation to maintain complete records, and it is an essential practice to prevent potentially addictive medications from being diverted from the legitimate drug supply.” “The DEA is committed to ensuring that veterinarians, like all registrants, are in compliance with the required regulations, which are enforceable through the Controlled Substances Act, handle controlled substances in a lawful manner, and provide effective controls to prevent diversion,” said Acting Special Agent in Charge Stephen Belleau, New England Field Division . “Failure to do so increases the diversion potential and jeopardizes public health and safety.” The claims resolved by the settlement are allegations only and there has been no determination of liability. ###


title: Holyoke, Massachusetts Man Sentenced to 85 Months in Armed Drug Trafficking Case

body_text: Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on December 23, 2024, Javon Calderon, 21, of Holyoke, Massachusetts, was sentenced by Chief United States District Judge Christina Reiss to a term of 85 months’ imprisonment to be followed by an 8-year term of supervised release. Calderon previously pleaded guilty to conspiracy to distribute fentanyl and cocaine and to using and carrying a firearm during and in relation to a drug trafficking crime. According to court records, Calderon and co-defendant Christopher Morgan spent substantial time in Bennington, Vermont, in 2022 distributing fentanyl and cocaine. During a portion of that time, Calderon and Morgan were hosted by co-defendants and Bennington residents Shavonne Doucette and Kyle Winnie. Calderon and Morgan employed locals to sell drugs for them. Doucette and Winnie also occasionally sold drugs for Calderon and Morgan. In early September 2022, inside the Doucette/Winnie residence, Calderon and Morgan threatened with firearms and assaulted one such local distributor over a drug debt. Portions of the assault were captured on video and depicted Calderon striking and threatening the victim and holding a firearm to the victim’s neck while making threats. The video also depicted Morgan pointing a firearm at the victim and issuing threats. The victim sustained scalp injuries that required staples. Like Calderon, Morgan has pleaded guilty to conspiracy to distribute fentanyl and cocaine and to using and carrying a firearm during and in relation to a drug trafficking crime. Morgan’s sentencing is scheduled for March 13, 2025. Doucette and Winnie have pleaded guilty to making their residence available for the distribution of fentanyl and cocaine. Doucette’s sentencing is set for January 21, 2025, and Winnie’s sentencing is set for February 18, 2025. United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of Homeland Security Investigations (HSI), the HSI Special Response Team, the Vermont State Police, the Bennington Police Department, the Bennington County Sheriff’s Department, the Rutland City Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Corinne Smith. Calderon was represented by Devin McKnight, Esq; Morgan is represented by Peter Langrock, Esq.; Doucette is represented by Brooks McArthur, Esq.; Winnie is represented by Jordana Levine, Esq. 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 .