title: Four Co-Conspirators Sentenced After Pleading Guilty to Wire Fraud

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS – United States Attorney Duane A. Evans announced that JAMES THOMAS SINYARD, a/k/a Jay Sinyard (“J. SINYARD”), MARY GIGI SINYARD a/k/a Gigi Sinyard (“M. SINYARD”), JOHN SUTTON (“SUTTON”), and MARC QUIROZ (“QUIROZ”) , were sentenced after each previously pled guilty to one count of wire fraud. According to the bills of information, J. SINYARD, M. SINYARD, SUTTON, and QUIROZ co-owned and operated companies called VetAttend of Jackson, LLC, and VetAttend Professional Services, LLC of Mandeville, Louisiana, where they purported to provide home aid and assistance services to veterans . On December 5, 2023, J. SINYARD was sentenced to 6 months of imprisonment, followed by 3 years of supervised release. M. SINYARD was sentenced to one month of imprisonment, followed by 3 years of supervised release. On December 11, 2023, SUTTON was sentenced to 24 months of imprisonment, followed by 3 years of supervised release. On December 14, 2023, QUIROZ was sentenced to 17 months of imprisonment, followed by 3 years of supervised release. Additionally, J. SINYARD, M. SINYARD, SUTTON, and QUIROZ each was ordered to pay a $100.00 mandatory special assessment fee. According to the bill of information that described the fraudulent scheme of J. SINYARD and M. SINYARD, the duo submitted more than one hundred fraudulent application affidavits for veterans and/or their surviving spouses, to the Department of Veterans Affairs (“VA”), falsely indicating that VetAttend of Jackson was already providing services to these veterans. As a result, from approximately August 2014 to approximately December 2020, the VA issued funds to over 70 veterans and/or their surviving spouses from whom VetAttend of Jackson fraudulently mis-appropriated approximately $2,136,329.68. According to the bills of information for SUTTON and QUIROZ, they submitted fraudulent affidavits for home aid services allegedly provided, knowing that those services were not actually provided. More particularly, as part of their fraud scheme, from approximately April 2013 until at least July 2018, SUTTON and QUIROZ submitted fraudulent affidavits and applications to the VA on behalf of veterans and their spouses, falsely claiming that VetAttend had actually provided home services to the veterans. As a result,, the VA issued approximately $4,065,969.18 to over 300 veterans and/or their surviving spouses that SUTTON and QUIROZ mis-appropriated, all without the knowledge of the veterans . “These sentencings send a clear message that those who would exploit veterans to commit fraud will be investigated and held accountable,” said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of Inspector General’s South-Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office for their efforts in this case.” The case was investigated by the Department of Veterans Affairs Office of Inspector General. The prosecution of the case was handled by Assistant United States Attorney Kathryn McHugh of the Financial Crimes Unit.


title: Collierville Man Pleads Guilty to Wire Fraud

component: USAO - Tennessee, Western

body_text: Memphis, TN – A local commodity trader pled guilty in federal court yesterday to one count of wire fraud as part of a fraudulent commodities investment scheme. Donald Wray Rodgers, 55, operated an unregistered trading pool under the name Three Bridges Trading Fund. United States Attorney Kevin G. Ritz announced the guilty plea today. According to information provided in court, Rodgers lied to investors about the money earned in the pool, providing them false fund performance statements and inflated investment returns. In fact, Rodgers’ trades were causing the fund to lose value each month. After less than one year in operation, Three Bridges Trading Fund was worthless, according to court documents. Rodgers’ criminal misrepresentations to his approximately fifty investors from around the United States led them to lose over $ 2,000,000 in the fund. The FBI Memphis Field Office investigated this case. Rodgers is set to appear before United States District Judge Thomas L. Parker for sentencing on March 21, 2024 at 1:30 pm. He faces a maximum penalty of 20 years in federal prison, a $250,000 fine, and three years of supervised release. Assistant United States Attorney William C. Bateman III is prosecuting this case on behalf of the federal government.


title: Revere, Massachusetts Man Sentenced in Nationwide Rideshare and Delivery Account Fraud Scheme

component: Federal Bureau of Investigation (FBI)

body_text: PROVIDENCE, RI – A Revere, MA, man was sentenced yesterday for defrauding rideshare companies using fraudulent driver accounts that he created using stolen identities. Thiago De Souza Prado, 39, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 70 months in prison, followed by three years of supervised release. Judge Wolf also imposed a $50,000 fine. Prado was charged in May 2021 along with 17 others. In September 2023, Prado was convicted by a federal jury of one count of conspiracy to commit wire fraud, three counts of wire fraud, and three counts of aggravated identity theft. “What Thiago De Souza Prado and this crew did is truly egregious. They stole the identities of unsuspecting consumers, violated customers’ privacy, and potentially compromised public safety by putting unqualified drivers behind the wheel of these rideshare and food delivery services which millions of people rely on,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “We are very grateful to Uber’s Global Security and Investigations team for their diligent efforts in rooting out this massive fraud ring, for quickly bringing it to the FBI’s attention, and for working with us to ensure the defendants in this case were brought to justice and held accountable for the crimes they committed.” According to the government’s evidence presented at trial, starting in 2019, Prado obtained stolen Massachusetts driver’s licenses and bought social security numbers on the darknet. He and his co-conspirators then used the stolen identities to pass the criminal background checks, the sex offender registry check, and the driving record check required by the rideshare companies and by the Massachusetts Department of Public Utilities. Prado and his co-conspirators also used the stolen social security numbers for tax reporting on their fraudulent accounts. Once the driving accounts were active, Prado either used the accounts himself or rented them out to others, who also could not pass the background checks, often because they did not have social security numbers and were in the United States illegally. Prado also used his fake driver accounts to get bonuses from rideshare companies by referring his other fake driver accounts as new drivers. In addition, Prado and his co-conspirators used an app, which they called “the drone,” to spoof rides and ride lengths, so that they were paid by the rideshare companies for “ghost rides” or for rides that were longer and more expensive than those actually provided. Prado received payments via bank accounts that he opened in the names of identity theft victims. United States Attorney Zachary Cunha of the District of Rhode Island and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Social Security Administration, the Massachusetts Department of Public Utilities and the Massachusetts Registry of Motor Vehicles. Assistant U.S. Attorneys David Holcomb and Kriss Basil of the Securities, Financial & Cyber Fraud Unit of the U.S. Attorney’s Office for the District of Massachusetts are prosecuting the case. Mr. Cunha was assigned to oversee this matter by the Department of Justice upon recusal of the U.S. Attorney for the District of Massachusetts. ###


title: Orange County Methamphetamine Dealer Sentenced To 6 Years In Prison

component: USAO - Florida, Middle

body_text: Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Jennifer Lee Branham (42, Orlando) to 6 years in federal prison for possession of methamphetamine with the intent to distribute it. Branham had pleaded guilty on July 26, 2023. According to court documents, in early 2022, Branham sold controlled substances to a confidential source in Orange County. Based on those drug sales, on February 23, 2022, deputies from the Orange County Sheriff’s Office executed a search warrant at Branham’s residence. Inside her bedroom, detectives located over 200 grams of methamphetamine, a scale, small baggies, various other controlled substances, and a loaded 9mm Springfield semi-automatic handgun. This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Karyna Valdes. 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: Raleigh Man Convicted in Cross-Country Drug Conspiracy

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – A federal jury convicted a Raleigh man last week on charges of drug trafficking, conspiracy, and illegal firearm possession for his role as a leader of a Raleigh-based drug organization that sourced drugs from Los Angeles, California and Newark, New Jersey. Lawrence Levon Jones, age 45, has eight prior felonies including seven drug trafficking offenses and one conviction for felon in possession of a firearm and he faces between 15 years and life in prison when he is sentenced next year. “This is the ninth defendant to be convicted in a drug trafficking organization moving kilogram quantities of drugs in the Raleigh area,” said U.S. Attorney Michael Easley. “I am proud of the collaboration of our law enforcement agencies to dismantle this organization and put those accountable behind bars.” According to court records and evidence presented at trial, during an investigation into drug trafficking activity which included surveillance and wiretaps, agents determined that Jones regularly traveled to Los Angeles and Newark, picked up money from conspirators who were holding for him, and purchased large quantities of cocaine and marijuana. Couriers transported the drugs to the Raleigh area. On July 22, 2020, law enforcement in Texas stopped one of these couriers travelling eastbound from California and seized 400 pounds of marijuana and three kilograms of cocaine from a hidden compartment in the back of the truck that had been constructed to look like a large stack of lumber. That same day, agents arrested Jones when he arrived at his stash house in Raleigh. Inside the home, agents found 3.5 kilograms of cocaine, 138 grams of crack, 2 kilograms of marijuana, hundreds of ecstasy pills that contained methamphetamine, two handguns (one stolen), over $99,000 in cash, and five kilo presses. Over the next two days, agents executed multiple search warrants at homes used by Jones’s organization in Raleigh and California and seized nine guns over $757,000, and additional drugs. The prosecution of Jones was a part of Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Other defendants associated with Jones pled guilty to drug trafficking and/or firearms offenses and received the following sentences imposed by U.S. District Judge James C. Dever III: Tyrone Bragg, of Raleigh pled guilty to drug trafficking conspiracy and firearms charges and received a sentence of 168 months in prison to be followed by five years of supervised release; Calvin Lamar Kelley, of Keysville, Georgia, pleaded guilty to a drug trafficking conspiracy charge and received a sentence of 60 months in prison to be followed by four years of supervised release; Keishron Ko-She Kilpatrick, of Raleigh, pleaded guilty to drug trafficking conspiracy and firearms charges and received a sentence of 84 months imprisonment to be followed by three years of supervised release; Marquis Deja Brite, of Raleigh, pleaded guilty to drug trafficking conspiracy and firearms charges and received a sentence of 90 months in prison to be followed by five years of supervised release; Hurley Matthew Cannady, of Raleigh, pleaded guilty to drug trafficking conspiracy and firearms charges and received a sentence of 117 months in prison to be followed by five years of supervised release; David Earl Seawell, Jr., of Raleigh, North Carolina, pleaded guilty to drug trafficking conspiracy charges and received a sentence of 78 months in prison to be followed by five years of supervised release; Wesley Kimball Kelley, of Atlanta, Georgia, pleaded guilty to drug trafficking conspiracy charges and is awaiting sentencing; and Robert McNeal, of Raleigh, pleaded guilty to drug trafficking conspiracy and is awaiting sentencing. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Raleigh Police Department and Federal Bureau of Investigation are investigating the case and Assistant U.S. Attorney Casey Peaden and Nick Hartigan are prosecuting the case. Investigators also received valuable assistance from the Drug Enforcement Administration and the 32nd Judicial District Attorney's Office in Texas. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00388-D-1.


title: D.C. Man Charged with Killing Two Brothers

component: USAO - District of Columbia

body_text: WASHINGTON – Ronzoni Allen Jackson Jr., 24, of the Washington, D.C. area, was arrested yesterday on charges of first degree murder while armed stemming from the shooting homicides of two brothers - 28-year-old Octavio and 35-year-old Osmine Quintano - just after midnight, on Tuesday, December 12, 2023, near The Pollo Company at 2314 4 th Street NE, U.S. Attorney Matthew M. Graves announced. Defendant Jackson was arraigned on two counts of premeditated first degree murder while armed in D.C. Superior Court, Courtroom C-10, where he entered a plea of not guilty. The Honorable Magistrate Judge Judith Pipe found probable cause that the defendant committed the two murders and held him without bond pending his preliminary hearing on January 2, 2024 at 9:30 a.m., before Judge Epstein in Courtroom 233. An arrest on a complaint is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty. In announcing the arrest, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and Assistant United States Attorney Sarah Santiago for her efforts in prosecuting this case.


title: Arizona Man Charged With Defrauding at Least 150 Victims in Cryptocurrency Investment Scheme

component: USAO - Arizona

body_text: PHOENIX, Ariz. – On Tuesday, a federal grand jury in Phoenix returned a 50-count indictment against Jeremie Sowerby, 45, of Fountain Hills, for wire fraud and transactional money laundering. The indictment alleges that Sowerby scammed at least 150 victims out of millions of dollars in a cryptocurrency scheme known as Dunamis Global Technologies. Sowerby marketed Dunamis as a company that sold cryptocurrency mining machines to be hosted in Dunamis warehouse facilities in Lakeside and Tempe, which he falsely claimed to own. Sowerby informed victim-investors that they were purchasing cryptocurrency mining machines with unique serial numbers associated with each victim’s cryptocurrency wallet. In reality, Sowerby directed most of the victim funds to accounts under his control. Any “earnings” were directed to a Dunamis wallet controlled by Sowerby, and victims were never able to access their invested money or any purported profits. Instead, Sowerby stole the money and used it for himself, including purchasing Teslas, residential properties, cryptocurrency, and other expensive items. Sowerby was previously charged , along with co-defendant Luis Ortega, in a 55-count indictment alleging that Sowerby and Ortega scammed hundreds of victims out of millions of dollars in a cryptocurrency investment scheme under the guise of three entities: Now Mining, VIP Mining, and Millennium Technologies. Sowerby was also previously charged for defrauding an Arizona physician through what he claimed to be an exclusive hedge fund investment opportunity called “Justice Capital.” Both cases remain pending. A conviction for wire fraud carries a maximum penalty of 20 years’ imprisonment and a fine of up to $250,000, or both. A conviction for transactional money laundering carries a maximum penalty of 10 years’ imprisonment and a fine of up to $250,000, or both. An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. The Federal Bureau of Investigation and the Internal Revenue Service (IRS)-Criminal Investigation are conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution. The FBI and IRS-CI believe that additional victims of Sowerby’s investment fraud schemes remain unidentified. Anyone who believes they were defrauded by the defendant in this case should contact the Victim Witness Section at the U.S. Attorney’s Office for the District of Arizona at usaaz.victimassist@usdoj.gov or fill out the questionnaire at this link: https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-potential-victims-of-jeremie-sowerby-luis-ortega-fraud-schemes . CASE NUMBER: CR-23-01757-PHX-SMB RELEASE NUMBER: 2023-203_Sowerby # # # 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: Leader Of Colombian Criminal Organization Pleads Guilty To Sending Over 19,000 Kilograms Of Cocaine Via Semi-Submersible Vessels To The Sinaloa Cartel

body_text: Tampa, FL – United States Attorney Roger B. Handberg announces that Nestor Hugo Gomez-Garcia (38, Colombia), a/k/a “Simon,” “Guava,” and “Guavita,” has pleaded guilty to conspiring to distribute cocaine on vessels subject to the jurisdiction of the United States. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set. According to the plea agreement, Gomez-Garcia was the leader of a transnational criminal organization that dispatched self-propelled semi-submersible (SPSS) vessels from Colombia into the Pacific Ocean destined for Sinaloa Cartel members in Oaxaca, Mexico. Members of his organization served various roles and responsibilities, such as overseeing security at the SPSS construction sites, building the fiberglass hulls for these vessels, recruiting crewmembers, and organizing the logistics of the smuggling trips. Gomez-Garcia contracted the construction of the SPSS vessels, paid the workers directly or through intermediaries, and invested in the cocaine shipments. In July and August 2015, and March 2016, the United States interdicted three SPSS vessels in international waters that had departed from Colombia while en route to Mexico. The first SPSS carried approximately 6,900 kilograms of cocaine, the August 2015 SPSS carried approximately 6,845 kilograms of cocaine, and the March 2016 SPSS contained approximately 5,824 kilograms of cocaine. This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The Department of Justice’s Office of International Affairs substantially assisted in the extradition of the defendants to the United States. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.


title: Indiana Health Network Agrees to Pay $345 Million to Settle Alleged False Claims Act Violations

component: Civil Division

body_text: Community Health Network Inc. (Community), a health care network headquartered in Indianapolis, has agreed to pay the United States $345 million to resolve allegations that it violated the False Claims Act by knowingly submitting claims to Medicare for services that were referred in violation of the Stark Law. The Stark Law seeks to safeguard the integrity of the Medicare program by prohibiting a hospital from billing for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. Under the Stark Law, when a hospital employs a physician, the hospital may not submit claims for certain services referred by that physician unless the physician’s compensation is consistent with fair market value and not based on the value or volume of their referrals to the hospital. In this lawsuit, the United States alleged that the compensation Community paid to its cardiologists, cardiothoracic surgeons, vascular surgeons, neurosurgeons and breast surgeons was well above fair market value, that Community awarded bonuses to physicians that were tied to the number of their referrals, and that Community submitted claims to Medicare for services that resulted from these unlawful referrals. The United States’ complaint alleged that beginning in 2008 and 2009, senior management at Community embarked on an illegal scheme to recruit physicians for employment for the purpose of capturing their lucrative “downstream referrals.” Community successfully recruited hundreds of local physicians, including cardiovascular specialists, neurosurgeons and breast surgeons, by paying them salaries that were significantly higher — sometimes as much as double — what they were receiving in their own private practices. Community was well aware of the Stark Law requirements that the compensation of employed physicians had to be fair market value and could not take into account the volume of referrals. Community hired a valuation firm to analyze the compensation it proposed paying to its recruited specialists. The complaint alleged that Community knowingly provided the firm with false compensation figures so that the firm would render a favorable opinion. The complaint further alleged that Community ignored repeated warnings from the valuation firm regarding the legal perils of overcompensating its physicians. In addition to paying specialists excessive compensation, the complaint alleged that Community awarded incentive compensation to physicians, in the form of certain financial performance bonuses that were based on the physicians reaching a target of referrals to Community’s network, again in violation of the Stark Law. “The Stark Law was enacted to ensure that the clinical judgment of physicians is not corrupted by improper financial incentives,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s recovery demonstrates the department’s resolve to protect the integrity of federal health care programs and to safeguard the taxpayer dollars used to support these important programs.” “Hoosier Medicare patients deserve to know that their care is based on their medical needs, not their doctor’s financial gain,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “When doctors refer patients for CT scans, mammograms or any other medical service, those patients should know the doctor is putting their medical interests first and not their profit margins. Community Health Network overpaid its doctors. It also paid doctors bonuses based on the amount of extra money the hospital was able to bill Medicare through doctor referrals. Such compensation arrangements erode patient trust and incentivize unnecessary medical services that waste taxpayer dollars. The U.S. Attorney’s Office’s Civil Division, working alongside the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and the DOJ’s Fraud Section are committed to holding companies accountable when they knowingly seek to profit off of Medicare patients through greedy compensation schemes.” “HHS-OIG remains steadfast in our efforts to protect our health care programs and the people they serve, including holding those accountable who violate the Stark Law,” said Deputy Inspector General for Investigations Christian J. Schrank of HHS-OIG. “Our work will not cease here. Following the settlement, HHS-OIG will enter into a five-year corporate integrity agreement with the defendant, further demonstrating our unwavering commitment to protecting federal health care programs.” Under the settlement, in addition to paying the United States $345 million, Community will enter into a five-year Corporate Integrity Agreement with HHS-OIG. The settlement announced today stems from a whistleblower complaint filed in 2014 by CHN’s former Chief Financial and Chief Operating Officer Thomas Fischer pursuant to the False Claims Act’s qui tam provisions, which permit private persons to bring a lawsuit on behalf of the government and to share in any recovery. The Act also permits the government to intervene and take over the lawsuit, as it did in this case as to certain of Fischer’s allegations. Fischer’s share has not yet been determined in this matter. The United States’ intervention and settlement in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800‑HHS‑TIPS (800-447-8477). The FBI and HHS-OIG investigated the case. The matter was handled by Trial Attorneys Arthur Di Dio, Kelly McAuliffe, Claire Horrell and David Finkelstein of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Justin Olson and Shelese Woods for the Southern District of Indiana. The case is captioned United States and the State of Indiana ex rel. Thomas Fischer v. Community Health Network, Inc., et al. , No. 1:14-cv-1215 (S.D. Ind.). The claims resolved by this settlement are allegations only and there has been no determination of liability. Settlement Complaint


title: South Carolina Man Who Orchestrated Drug Deals By Phone From State Prison Sentenced To Over 15 Years In Federal Prison

body_text: Jacksonville, Florida - U.S. District Judge Marcia Morales Howard has sentenced Zachariah Ryan Luke (28, Bennettsville, South Carolina) to 15 years and 8 months in federal prison for conspiracy to distribute, and possess with the intent to distribute, 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine. During the same hearing, Judge Howard sentenced Luke’s co-defendant, Evin Rae Davenport (32, Greenwood, South Carolina), to 12 years in federal prison for the same offense. Luke and Davenport had pleaded guilty on August 16 and September 13, 2023, respectively. According to court documents, in November 2021, Luke was serving a prison sentence in South Carolina for various drug and firearm offenses. Using contraband cellphones, Luke communicated with Davenport who assisted him in acquiring and selling illegal drugs on the street. Receiving direction from Luke, Davenport delivered drugs three times to a Florida-based drug dealer, including approximately one kilogram of methamphetamine that she had supplied to him outside of a retail store in South Carolina. Once Davenport delivered the kilogram of methamphetamine, the dealer returned to Florida. In St. Augustine, a deputy observed a traffic offense and signaled the dealer to pull over. The dealer initially appeared to be looking for a place to stop, but instead accelerated and raced down the streets of a residential neighborhood. A police helicopter tracked the speeding car, and the pilot observed an object being thrown from the car and directed another deputy to that specific location. Following the directions of the pilot, the deputy located a backpack on the side of the road. Inside, the deputy found approximately 985.6 grams of crystal methamphetamine that laboratory testing would later show was 100% pure. After attempting to dispose of the drugs, the dealer continued to drive, but eventually reached a dead end. He then abandoned the vehicle to hide in a nearby wooded area but was located and arrested. After that arrest, corrections officers in South Carolina seized multiple cellphones from Luke, which he was prohibited from possessing in prison. Investigators searched those phones and recovered text communications with both Davenport and the Florida-based dealer, concerning when, where, and from whom drugs were to be supplied and delivered. This case was investigated by the St. Johns County Sheriff’s Office, the Drug Enforcement Administration, the South Carolina Department of Corrections, the Aiken County (South Carolina) Sheriff’s Office, the Aiken (South Carolina) Department of Public Safety, the North Augusta (South Carolina) Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Michael J. Coolican.


title: Greenwich Psychologist Sentenced to 27 Months in Federal Prison for $2.6 Million Health Care Fraud Scheme

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that MICHAEL LONSKI, 72, of Greenwich, was sentenced yesterday by U.S. District Judge Sarala V. Nagala in Hartford to 27 months of imprisonment, followed by three years of supervised release, for operating a $2.6 million health care fraud scheme. According to court documents and statements made in court, Lonski was a licensed psychologist who, along with wife, Dr. Evelyn Llewellyn, maintained separate medical practices out of their home office in Old Greenwich. Lonski and Llewellyn were authorized providers for the Connecticut Medicaid program (“Medicaid”), Medicare, and other health care benefit programs. Lonski assumed responsibility for submitting claims for reimbursement for services allegedly provided by himself and Llewellyn, both at their home office and at various skilled nursing facilities within Connecticut. For years, Lonski billed insurers for services that he knew were not rendered, including by billing for patients who were deceased, for dates of service when he was out of the country, for dates of service when Llewellyn was out of the country, and for dates of service when he was hospitalized. From 2014 through 2019, Lonski submitted more than 80,000 claims for service, and he claimed to have provided services every single day, including weekends and holidays, except for one day in 2017. On 60 of these dates, Lonski billed for more than 24 hours of service, and on 901 dates, Lonski billed for more than 12 hours of service. These fraudulent claims resulted in a loss of over $2,651,294, including a loss of $1,157,292 to the Connecticut Medicaid program and a loss of $119,092 Medicare. In 2002, Lonski settled a federal civil lawsuit alleging health care fraud, which was brought by the government in the Southern District of New York. Lonski agreed to pay $4 million in restitution and was excluded from participating in all federal healthcare programs, including Medicare and Medicaid, for five years. Judge Nagala ordered Lonski to pay restitution $2,651,294. On December 12, 2022, Lonski pleaded guilty to health care fraud. Lonski is required to report to prison on March 25, 2024. In May 2023, Llewellyn entered into a civil settlement agreement with the federal and state governments in which she agreed to pay $658,294 to settle allegations that she received payment for claims submitted by Lonski to the Medicare and Medicaid programs for psychology services allegedly provided by Llewellyn to Medicare and Medicaid beneficiaries that were, in fact, not provided. This investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Susan L. Wines, Richard M. Molot, and Christine Sciarrino People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.


title: Colorado Man Arrested for Attempting to Provide Material Support to ISIS

component: National Security Division (NSD)

body_text: Humzah Mashkoor, 18, of Westminster, Colorado, is charged with attempting to provide material support to a designated foreign terrorist organization and made his initial appearance in federal court today. According to court documents, Mashkoor was arrested on Monday, Dec. 18 at the Denver International Airport before he could board a flight for the first leg of an overseas trip. According to the affidavit in support of the criminal complaint, Mashkoor was traveling to the United Arab Emirates, where he intended to stay until he continued on to either Afghanistan or Syria to serve as a fighter for ISIS. The FBI Denver Field Office is investigating this case. Assistant U.S. Attorney Laura Cramer-Babycz for the District of Colorado is prosecuting the case, with the assistance of Jennifer Levy of the National Security Division’s Counterterrorism Section. A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Palm Beach Gardens Attorney Sentenced to Prison for Possessing Child Pornography

component: USAO - Florida, Southern

body_text: MIAMI – Michael Thomas Dolce, 54, a Palm Beach Gardens attorney, was sentenced yesterday, by U.S. District Judge Donald M. Middlebrooks, to 48 months in federal prison, to be followed by 15 years of supervised release, after previously pleading guilty to possessing child pornography. As part of his guilty plea, Dolce admitted to downloading child pornography to his personal laptop at his West Palm Beach apartment. According to court records, Dolce used peer-2-peer software to search for and download the illegal material, including prepubescent children. Nearly 2,000 images and videos were recovered from Dolce’s laptop. Forensic evidence confirmed that Dolce was in the process of downloading child pornography files just before law enforcement seized his laptop during the execution of a federal search warrant of his residence. “The prosecutors in our office, alongside our FBI partners, are committed to safeguarding all children from child predators” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “As an attorney and Southern District resident, Michael Dolce had a duty to protect children from the very crimes for which he pled guilty to committing. Yesterday, Dolce was sentenced to prison for casting aside his oath and victimizing the most vulnerable people in society – our children. We encourage anyone with information regarding the sexual exploitation of children to immediately contact the FBI.” “The investigation revealed that Michael Dolce downloaded onto his laptop nearly 2,000 images and videos of child sexual abuse material, including prepubescent children,” said Jeffrey B. Veltri, Special Agent in Charge, FBI Miami. “There is nothing more despicable than those who carry out crimes against the most innocent among us - our children. That is why our agents, analysts, and task force officers work tirelessly to bring to justice those individuals responsible for such heinous crimes.” U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the sentencing. The West Palm Beach Resident Agency of the FBI Miami Field Office investigated the case. Assistant U.S. Attorney Gregory Schiller prosecuted it. 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 Criminal Division’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 www.projectsafechildhood.gov or https://www.justice.gov/usao-sdfl/project-safe-childhood . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-80063. ###


title: Lodge Grass felon sentenced to two and one-half years in prison for illegally possessing firearm

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

body_text: BILLINGS —A Lodge Grass man who admitted to illegally possessing a firearm because of prior felony convictions was sentenced today to two and one-half years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said. Paul Nomee III, 61, pleaded guilty in August to felon in possession of a firearm. U.S. District Judge Susan P. Watters presided. In court documents, the government alleged that on Jan. 11, the Bureau of Indian Affairs responded to a report of a car that had crashed outside of Crow Agency, on the Crow Indian Reservation. While en route, the officer passed a vehicle with significant damage and matching the description in the report. Nomee was driver and only occupant. The officer believed Nomee had active tribal arrest warrants and took him into custody. Nomee told the officer he had a pistol in a shoulder holster he was wearing. The officer found a loaded pistol in the holster. Nomee had two prior felony convictions and was prohibited from possessing firearms. Assistant U.S. Attorney Lori Harper Suek prosecuted the case. The BIA and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. XXX


title: Armed Career Criminal Facilitating the Sale of Firearms to Juveniles Sentenced to 18 Years

body_text: RALEIGH, N.C. – A Zebulon man was sentenced to 216 months in prison for illegally selling guns to juveniles. On April 13, 2023, Braxton Benton, age 34, pled guilty to engaging in the business of dealing in firearms without a license and aiding and abetting along with possession of ammunition by a convicted felon. He has previous convictions for several common law robberies and drug violations. “Trafficking guns to kids is a fast-track to federal prison,” said U.S. Attorney Michael Easley of the Eastern District of North Carolina. “This felon got a straw purchaser to buy guns and report them stolen, then he sold them to juveniles. Guns bought at a North Carolina Cabela’s turned up on a kid in Connecticut in less than a month. We are bringing federal resources to target the gunrunners and straw purchasers arming children and fueling violence in our communities. ” According to court documents and other information presented in court, Benton’s codefendant, Takara Wilson, reported the theft of five handguns from her car November 10, 2021 and claimed that the guns had been taken on October 28, 2021, but she had been too busy to report the theft. An investigation into the reported theft found that Wilson had purchased three of the guns from a Cabela’s in Garner on November 6, 2021, over a week after Wilson claimed they had been stolen. Surveillance video from the store showed Benton with Wilson together. On December 3, 2021, two of the firearms that Wilson reported stolen were found during the search of a juvenile’s residence in New Haven, Connecticut based on the juvenile being involved in multiple incidents involving firearms over a three-month period. The investigation revealed that Benton had used Wilson to purchase several firearms for him that he later sold without a license. On January 18, 2022, during a traffic stop, Benton was found in possession of 28 grams of marijuana and a loaded, Polymer80 “Ghost Gun” that was neither registered nor contained a serial number, making it extremely difficult to trace. There were also text messages on Benton’s phone indicating he was attempting to sell the Polymer80 gun. Takara Wilson was sentenced to 13 months imprisonment followed by 3 years of supervised release for engaging in the business of importing, manufacturing, or dealing in firearms without a license on June 16, 2023. The indictment of both Wilson and Benton was originally announced in July of 2022 as part of the Raleigh Violent Crime Action Plan (VCAP). VCAP is an approach that draws on close partnerships among federal, state, and local law enforcement, as well as the community, to combat violence. The initiative brings state and federal prosecutors together to prioritize the review of gun crime cases and identify and prosecute repeat offenders and criminal organizations as well as identifying and stopping the sources of guns. Law enforcement partners use inter-agency coordination and intelligence-led policing, analyzing crime data to deploy resources where they are most needed and leveraging federal Task Force officers to bring federal technology to address local gun violence. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Raleigh Police Department investigated the case and Assistant U.S. Attorney Ashley Foxx prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-153-1D.


title: Grants Pass Physician and Affiliated Medical Practice Agree to Pay $115,000 to Settle Health Care Fraud Allegations

component: USAO - Oregon

body_text: PORTLAND, Ore.—A Grants Pass, Oregon medical doctor and his general medical practice have paid $115,000 to settle allegations by the United States regarding the physician, on behalf of himself and his practice, submitting medical reimbursement claims to Medicare, TRICARE, and the Veterans Health Administration (VHA), announced the U.S. Attorney’s Office for the District of Oregon. Wendell Heidinger, 60, and Optimal Health of Southern Oregon, LLC (Optimal), paid $115,000 to the United States. The United States contended that, between January 1, 2018, and December 31, 2020, Dr. Heidinger and Optimal submitted claims for reimbursement to Medicare, TRICARE, and VHA coded as “evaluation and management” when frequency specific microcurrent (FSM) treatments were primarily provided. Medicare considers FSM as an investigational treatment for which it does not provide coverage or payment. Medicare is a public health insurance program administered by the Centers for Medicare & Medicaid Services, a federal agency within the U.S. Department of Health and Human Services (HHS). TRICARE is a civilian health care program administered by the Defense Health Agency (DHA), a joint, integrated combat support agency within the U.S. Department of Defense (DOD). VHA, an agency within the U.S. Department of Veterans Affairs, is the largest integrated health care system in the United States and provides primary care, specialized care, and related medical and social support services to American veterans. This settlement was the result of a coordinated investigation by the U.S. Attorney’s Office for the District of Oregon; HHS Office of Inspector General (HHS-OIG); and DHA. The United States was represented in this matter by Carla G. McClurg, Assistant U.S. Attorney for the District of Oregon, with assistance from Lisa M. Re, Assistant Inspector General for Legal Affairs for HHS-OIG and Salvatore M. Maida, General Counsel for DHA. The claims resolved by this settlement are allegations only, and there has been no determination or admission of liability.


title: Former Paralegal for Chicago Law Firm Admits Embezzling Bankruptcy Estate Funds

body_text: CHICAGO — A former paralegal for a Chicago law firm has pleaded guilty to a federal fraud charge for embezzling more than $600,000 from bankruptcy estate accounts. BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters for the law firm. Sutton admitted in a plea agreement that she embezzled money from more than 40 bankruptcy estate accounts and several liquidating trust accounts in Chapter 7 and Chapter 11 matters on which she worked. Sutton orchestrated fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts she controlled, including her personal bank account, credit card account, student loan account, and mortgage account. In one instance, Sutton used a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds. Sutton admitted in the plea agreement that her conduct victimized not only the creditors, but also her law firm, a partner at the firm for whom she worked, and the U.S. Trustee Program, among others. Sutton, 67, of Austin, Texas, and formerly of Park Forest, Ill., pleaded guilty on Dec. 14, 2023, to a charge of wire fraud. The conviction is punishable by up to 20 years in federal prison. U.S. District Judge Mary M. Rowland set sentencing for April 2, 2024, at 11:00 a.m. The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorney Kartik K. Raman. Sutton plea agreement


title: Iranian National Charged with Unlawfully Procuring Microelectronics Used in Unmanned Aerial Vehicles on Behalf of the Iranian Government

body_text: Today, the Justice Department unsealed an indictment charging Iranian national Hossein Hatefi Ardakani and co-defendant Gary Lam, who worked for a Chinese company, with crimes related to the procurement of U.S.-manufactured dual-use microelectronics for the Islamic Revolutionary Guard Corps (IRGC) Aerospace Force Self Sufficiency Jihad Organization’s (ASF SSJO) one-way attack unmanned aerial vehicle (UAV) program. Concurrent with this unsealing, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Ardakani, as well as multiple other individuals and entities involved in the procurement network used by Ardakani in support of Iran’s production of UAVs. Ardakani’s codefendant, Lam, whom OFAC identified as Lin Jinghe, was designated by OFAC in October . “Today’s coordinated action with the Treasury Department demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.” “Today’s announcements show that we remain focused on disrupting the efforts of Iran and its agents to circumvent U.S. sanctions in support of Iran’s weapons programs, including its drone program, which have been used to support and supply terrorist organizations and other foreign adversaries – such as Russia – around the globe,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “This whole-of-government approach is one more step in stopping the acquisition of drones for nefarious purposes such as attacks on innocent civilians and civilian infrastructure.” “U.S. technology has zero place in Iranian UAVs,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce. “As these allegations demonstrate, those who procure dual-use microelectronics for the Islamic Revolutionary Guard Corps will be held accountable.” “Ardakani and his co-conspirators crafted a sophisticated web of front companies to obscure the illicit acquisition of U.S. and foreign technology to procure components for deadly UAVs,” said Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI) New England. “These very components have been found in use by Iran’s allies in current conflicts, including in Ukraine. The disruption of these criminal networks by Homeland Security Investigations means that hundreds of thousands of critical UAV components will never again be used for malign purposes.” According to the indictment, between at least in or around September 2014 and September 2015, Ardakani and Lam, who was based in China and Hong Kong, as well as other associates, conspired to illegally purchase and export from the United States to Iran dual-use microelectronics that are commonly used in UAV production, including high electron mobility transistors (HEMTs), monolithic microwave integrated circuit (MMIC) power amplifiers, and analog-to-digital converters. Each of these components are subject to U.S. export controls for anti-terrorism, national security and regional stability reasons. The indictment further alleges that on four separate occasions Ardakani and his co-conspirators used a web of foreign companies to accomplish their obfuscation and evasion efforts. For example, between June and September 2015, Ardakani and Lam caused an unwitting French company to purchase from a U.S. company several pieces of analog-to-digital converters with applications in wireless and broadband communications, radar and satellite subsystems, multicarrier, multimodal cellular receivers, antenna array positioning and infrared imaging. Lam then caused a division of the French company to ship the analog-to-digital converters to Hong Kong, where they were reexported to Iran. A variation of this tactic – involving witting and unwitting companies in Canada, Hong Kong, and China – was used on the other three occasions. In addition to the indictment, separate, related seizure actions targeting Nava Hobbies SDN BHD (Nava Hobbies) and Arta Wave (Arta Wave) SBN BHD and their property were unsealed today. Nava Hobbies and Arta Wave are two of the entities designated by OFAC in its action announced today. The funds are subject to seizure based on violations of U.S. law, including U.S. economic sanctions targeting Iran and money laundering violations. The seizures, totaling more than $800,000, aim to further degrade this network’s ability to procure UAV components. Proceedings involving this property remain ongoing. Ardakani and Lam are charged with conspiracy to export U.S. goods to Iran and to defraud the United States, which carries a maximum penalty of five years in prison; unlawfully exporting and attempting to export goods to Iran, which carries a maximum penalty of 20 years in prison; and conspiracy to engage in international money laundering, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Ardakani and Lam remain at large and are believed to reside abroad. HSI, the Department of Commerce’s Bureau of Industry and Security, and the Defense Criminal Investigative Service are investigating the case. Assistant U.S. Attorney Jolie Zimmerman for the District of Columbia is prosecuting the case, with valuable assistance from Assistant U.S. Attorney Sean Heiden for the District of Columbia and Trial Attorneys Heather Schmidt and Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Guatemalan National Pleads Guilty To Conspiring To Smuggle Over 6,000 Kilograms Of Cocaine Into The United States

body_text: Tampa, FL –United States Attorney Roger B. Handberg announces that Eliezer De Leon-Lopez (38, Guatemala), a/k/a “Wiro Loco” and “Daniel Martinez,” pleaded guilty today to conspiring to import cocaine into the United States. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set. According to the plea agreement, Leon-Lopez was part of an organization that received cocaine in Guatemala that had been smuggled on maritime vessels from South America. The organization then brought the cocaine to shore, transported it to the northern border of Guatemala, and smuggled it into Mexico for subsequent importation into the United States. In 2017, Leon-Lopez retired from active smuggling by relinquishing his routes and South American contacts but continued to financially benefit from the smuggling operations. On November 11, 2018, the El Salvadoran navy interdicted a self-propelled semi-submersible (SPSS) in international waters. There were five men – four Colombian nationals and one Guatemalan national – onboard. The SPSS was transporting approximately 6,380 kilograms of cocaine. Intercepted communications obtained in the United States revealed that Leon-Lopez was in communication with a coconspirator about the status of the SPSS and the crewmembers, and then received photos of the seized cocaine and an article on social media about the interdiction. This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.


title: Romance Scammer who Helped Steal Nearly $1.2 Million from Missouri Woman Sentenced to 3 Years in Prison

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – U.S. District Judge Rodney W. Sippel on Tuesday sentenced a man who helped scam nearly $1.2 million out of a St. Louis area woman to three years in prison and ordered him to repay the money. Rotimi Oladimeji, 38, of Texas, assisted other scammers in Nigeria and the United States prey on the victim, who thought she was in an online romance with a veterinarian and animal behaviorist living in St. Louis. After a scammer spotted the victim on an online dating site, Oladimeji and his co-conspirators began an online relationship with her. They made plans to meet with her but never followed through, once leaving her waiting at the Missouri Botanical Garden. In October of 2019, Oladimeji claimed the veterinarian was going to Dubai, then said he wouldn’t be allowed to leave unless she sent money. They continued to make request after request of the victim for four and five-figure sums, court records show. Oladimeji had the victim send cash and cashier’s checks via FedEx to the Texas home of his co-defendant, Olumide Akrinmade, now 38, of Richardson, Texas. Oladimeji had recruited Akrinmade and Adewale Adesanya, another Texas resident, to receive the funds. In all, the victim lost nearly $1.17 million. Oladimeji received 20% of the funds he generated. As money mules who transmitted the fraudulent proceeds to people like Oladimeji, Akinrinmade and Adesanya received 20% of the funds they forwarded. The remaining amount went to scammers in Nigeria. Oladimeji was born in Lagos, Nigeria and could be deported after his release from prison. Oladimeji pleaded guilty in December of 2022 to two counts of mail fraud, two counts of wire fraud and one count of conspiracy to commit mail fraud and wire fraud. Akrinmade, now 38, pleaded guilty in April to one count of conspiracy to commit mail fraud and wire fraud. He was sentenced to 15 months in prison and ordered to repay $46,500. Adesanya pleaded guilty in U.S. District Court in Dallas and was sentenced to four years in prison. He was also ordered to repay $1.5 million that resulted from the romance fraud as well as a business email compromise scheme. The case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Tracy Berry prosecuted the case. For information about how to spot and guard against romance scams, go to ice.gov/features/romance-scams .


title: Boston Man Pleads Guilty to Firearm and Ammunition Offense

component: USAO - Massachusetts

body_text: BOSTON – A Boston man pleaded guilty today to unlawfully possessing a firearm and ammunition. Victor Florentino, 27, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 11, 2024. Florentino was indicted by a federal grand jury in August 2022. In April 2022, during a motor vehicle stop in Quincy, Florentino was found in possession of a Glock 9mm pistol and 15 rounds of ammunition. Florentino is prohibited from possessing a firearm or ammunition due to a prior felony conviction in 2016 for firearms trafficking. The felon in possession charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit 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: New Yorker Guilty of Defrauding 50+ Investors in Pre-IPO Scam Sentenced

component: USAO - Georgia, Middle

body_text: COLUMBUS, Ga. – The CEO of a New York-based venture capital firm who conspired to defraud more than 50 investors of millions of dollars in a pre-IPO scam was sentenced to prison today for his crime. George Iakovou, 30, of New York, New York, was sentenced to serve 97 months in prison to be followed by three years of supervised release by U.S. District Judge Clay Land today. Iakovou pleaded guilty to one count of conspiracy to commit wire fraud on Aug. 8. Iakovou is not eligible for parole. “George Iakovou’s financial scheme and lies harmed people, causing irreparable damage to his victims,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level in the Middle District of Georgia will continue to do everything in our power to hold con artists accountable for their crimes.” “George Iakovou’s greed will have an everlasting effect on the victims he defrauded,” said Resident Agent in Charge Clint Bush of the U.S. Secret Service’s Albany, Georgia, Resident Office. “The United States Secret Service will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of financial fraud in our community and around the nation.” According to court documents, in July 2021, the U.S. Secret Service (USSS) began investigating a pre-IPO (initial public offering) scheme orchestrated by Iakovou, the CEO of Vika Ventures LLC, a boutique venture capital firm headquartered in New York which purported to specialize in pre-IPO investments in various early and late-stage private companies. Iakovou advertised that Vika had access to buy pre-IPO shares in private companies such as Palantir, Airbnb, SpaceX and Stripe. He claimed that once these private companies went public and the mandatory six-month lockout period expired, Vika would distribute the purchased shares to the investors. In fact, Iakovou had neither access to pre-IPO shares in the advertised companies nor owned the shares at the time of the solicitations. While Iakovou did take the victim-investors’ money, he did not purchase or acquire any of the promised shares. Iakovou established fake email domains, posed as representatives from private equity brokerage firms and created fake bank statements among other tricks to carry out his fraud scheme. USSS identified more than 50 victim-investors from across the country who provided capital to Vika between Jan. 2020 and Dec. 2021, including two victims in the Middle District of Georgia. A review of bank records for Vika’s investor account showed that identified victim-investors paid Vika approximately $5,958,505 for the purchase of pre-IPO shares of select private companies, but none received their promised shares. Iakovou rerouted the money to several accounts, including personal bank accounts, and used the money for private jet charters, cars, home furnishings, artwork, luxury clothing and accessories. For example, Iakovou spent $135,528 on a 2021 Corvette Stingray and more than $500,000 on luxury watches, including $231,799 on a single Patek Philippe timepiece. This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Christopher Williams prosecuted the case.


title: Laguna Man Sentenced to 15 Months in Prison for Assault

component: USAO - New Mexico

body_text: ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Andres Nathaniel Harjo was sentenced to 15 months and 11 days in prison. Harjo, 25, of Laguna and an enrolled member of Laguna Pueblo, pleaded guilty to assault with intent to commit a felony on September 11, 2023. According to court documents, on February 15, 2020, Harjo assaulted the victim, Jane Doe, at their shared residence and only stopped when his actions were interrupted by a third individual. Upon his release from prison, Harjo will be subject to 3 years of supervised release. During the first six months of his release, he will be required to reside at a residential reentry center. He will also be required to complete literacy education, vocational rehabilitation programming, and sex offense treatment and counseling. The Bureau of Indian Affairs investigated this case with assistance from the Pueblo of Laguna Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case. # # # 23-288


title: Leader of large cartel-connected drug trafficking organization sentenced to 11 years in prison

component: USAO - Washington, Western

body_text: Seattle – A citizen of Mexico, twice federally convicted of drug trafficking in Washington State, was sentenced today in U.S. District Court in Seattle to 11 years in prison for conspiracy to distribute controlled substances and conspiracy to commit money laundering, announced Acting U.S. Attorney Tessa M. Gorman. Alan Gomez-Marentes, 38, of Los Angeles and Tukwila, Washington was arrested in July 2020 following an 18-month investigation of an extensive drug trafficking organization. Gomez-Marentes ordered drug shipments and directed underlings to process drugs for distribution. He and his sister were involved in laundering the proceeds from the drug trafficking. At today’s sentencing hearing, U.S. District Judge John C. Coughenour said, the sentence he imposed was driven by the size of the drug trafficking ring, the amount of incredibly dangerous fentanyl it brought into the community and that this was Mr. Gomez-Marentes “second federal drug trafficking conviction.” In total, the investigation into the conspiracy resulted in the seizure of 45 pounds of methamphetamine; 12 pounds of heroin; 3,200 fentanyl pills; 22 firearms; and $566,391. On the wiretapped phone calls, agents heard Gomez-Marentes directing members of the organization to get new phones or pack up drug trafficking materials to avoid police scrutiny. He was heard asking members to obtain firearms and urging the beating of a drug trafficker who owed him money. In 2005, Gomez-Marentes was convicted in Eastern Washington of distributing cocaine at Washington State University. He was sentenced to five years in prison and was deported. He was convicted in Mexico for another drug trafficking crime. While serving five years in a Mexican jail he began assisting drug dealers by translating drug deals with buyers in the U.S. He was released in Mexico in 2018 and illegally returned to Washington State in 2019. Describing Gomez-Marentes role in the drug organization, prosecutors wrote to the court, “Alan Gomez-Marentes played a central leadership role in this highly successful organization for at least 10 months. He oversaw all aspects of drug trafficking: he orchestrated loads of drugs from Mexico; he managed the conversion of liquid methamphetamine to crystal methamphetamine; he directed numerous redistributors, providing them drugs for delivery and collecting cash drug proceeds; and he laundered tens of thousands of dollars.” This is the final sentencing in this drug trafficking ring. The sentences for leaders and violent actors in the organization range from 17 years for Luis Magana-Ramirez, who was tied to violence and threats of violence, to ten and twelve years in prison for lower-level distributors who were caught with drugs and guns. “The Jalisco Cartel is a significant threat to our community and the sentences today show the seriousness of the crimes of their affiliates here in the South Sound,” said DEA Seattle Special Agent in Charge David F. Reames. “DEA appreciates the partnership of the U.S. Attorney’s Office and our Federal, state, and local law enforcement partners as we close this investigation with a win for our community.” This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF . The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), and the Internal Revenue Service (IRS). In addition, to the agencies listed above, these law enforcement agencies assisted in the investigation and/or with arrests and search warrants: DEA Seattle Special Response Team, Valley Narcotics Enforcement Team, Valley SWAT, Pierce County SWAT, Pierce County Sheriff’s Office, Joint Narcotics Enforcement Team, Bremerton Special Operations Group, King County SWAT, King County Sheriff’s Office Metro, Burien Police Department, Auburn Special Investigations Unit, FBI Seattle, FBI SWAT, FBI Portland Tactical and TNET, which is comprised of Tacoma, Lakewood, Auburn, Kent, Bonney Lake and Puyallup Police Departments, the Pierce County Sheriff’s Office and the Washington State Department of Corrections. The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA). The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and Andy Colasurdo.


title: Indictment Charges District Man with Fentanyl Trafficking and Firearms Counts

body_text: WASHINGTON –Kahlil Felder, 39, of Southeast Washington D.C., was arraigned on a four-count indictment yesterday in U.S. District Court charging him with possession with intent to distribute more than 400 grams of fentanyl, and using, carrying, and possessing a firearm in furtherance of a drug trafficking offense, among other charges. Felder was ordered detained pending trial. The indictment was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Derek W. Gordon, of Homeland Security Investigations Washington Field Office, Inspector Damon Wood, with the U.S. Postal Inspection Service "Washington Division", and Chief Pamela Smith, of the Metropolitan Police Department. According to the indictment, Felder, aka, Kahlil Gibron Hewitt, unlawfully, knowingly, and intentionally, distributed a mixture containing a detectable amount of fentanyl on October 22, 2022, and possessed with intent to distribute over 400 grams of fentanyl on December 13, 2023. The indictment further charges that, on December 13, 2023, Felder possessed two firearms in furtherance of a drug trafficking crime and possessed two firearms as a prohibited person—that is, a person convicted of a crime punishable by a term of imprisonment for a term exceeding one year. During a search of Felder’s residence on December 13, law enforcement officers discovered two loaded semiautomatic pistols – a Glock 36, 45mm, and a Springfield Hellcat 9 mm– and more than five kilograms of suspected fentanyl. The fentanyl included thousands of pre-packaged baggies or “zips” filled with suspected fentanyl. Investigators also found tools and materials for packaging fentanyl, including a scale, test kits, gloves, a respirator, a sifter, and a money counter. This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. The charges of possession with intent to distribute over 400 grams or more of fentanyl and possession of firearm in furtherance of drug trafficking carry a statutory maximum of life in prison. The possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year carries a statutory maximum of 15 years in prison. The charges also carry potential financial penalties. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. This case is being investigated by the Homeland Security Investigations Washington Field Office, U.S. Postal Inspection Service’s Washington Office, and MPD’s Violent Crime Suppression Division. It is being prosecuted by Assistant U.S. Attorney Will Hart and Special Assistant U.S. Attorneys Jordan Leiter and Javier Urbina of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.


title: Former owner of Everett and Lynnwood restaurants sentenced to 10 months in prison for multi-year tax fraud

body_text: Seattle – The 45-year-old former owner of two Snohomish County restaurants was sentenced today in U.S. District Court in Seattle to 10 months in prison, a $10,000 fine and two years of supervised release for tax evasion announced Acting U.S. Attorney Tessa M. Gorman. Si Yong Kim failed to pay taxes on more than $1.7 million in income at two sushi restaurants: Oshima and Si Joy. At the sentencing hearing, U.S. District Judge James L. Robart was particularly incensed that Kim had taken government aid in the form of Paycheck Protection Program loans during the pandemic. “Here is a man who is withholding his taxes to the treasury but is perfectly willing to take taxes from the treasury to keep his businesses afloat…. It is highly troublesome that this went on for an extensive period of time,” Judge Robart said. “Our tax system operates on an honor system where we expect our taxpayers to pay their fair share,” said Acting U.S. Attorney Gorman. “In this case Mr. Kim didn’t cheat to keep his restaurants afloat, rather he used the money that should have gone to taxes for expensive watches, designer shoes and accessories, and jewelry. He used the money for investments and to pay off the mortgage on his home in Mukilteo. That conduct is an affront to all who scrimp and struggle to pay their fair share.” According to records filed in the case between 2016 and 2020, Kim underreported the income at his restaurants by more than $1.7 million. He did this by keeping cash proceeds and periodically depositing the cash to his personal bank account or keeping the cash at his home. He paid his employees in cash and failed to pay over various employment taxes. He also overestimated the costs associated with the two restaurants. When law enforcement executed a search warrant at Kim’s Mukilteo home and at his businesses in June 2022, they discovered he kept handwritten books in which he documented the actual gross income and legitimate expenses for his restaurants and noted a separate figure—a “CPA number”—that provided to his accountant for tax purposes. The CPA number omitted the cash receipts for his restaurants and understated credit card charges as well. The search also revealed an extensive collection of designer goods, large amounts of cash, and records that indicated employees were paid under the table. Kim also used the proceeds from his scheme to invest in properties in Georgia and to pay off his home mortgage. An analysis by the Internal Revenue Service Criminal Investigation revealed that in each calendar year from 2016 to 2020 Kim failed to report his actual income for each restaurant. In 2017 he failed to report more than $586,395 in income. Kim has paid restitution of $511,750. In asking for a one-year prison sentence, Assistant United States Attorney Lauren Watts Staniar noted that the public needs to see that there is punishment for illegally evading taxes. Kim’s “tax fraud was meticulous and deliberate: he kept thorough handwritten books for his restaurants in which he calculated income and expenses. At the end of each month, he wrote down a ‘CPA Number’ that omitted his restaurants’ cash receipts and understated credit card receipts by several thousands of dollars…. He ha(d) cash stashed throughout his home, drives luxury cars, and proudly displays Rolex watches in a locked case. This is not a circumstance in which a struggling business owner underreported income to keep the lights on. Kim had the means to pay his taxes, he just chose not to.” In court today Kim’s lawyer said he had already sold the sushi restaurant in Everett. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.


title: Roseville Man Sentenced to 11 Years in Prison for Distributing Child Pornography

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Pablo Ramos, 50, of Roseville, was sentenced today to 11 years in prison, to be followed by 10 years of supervised release, for distribution of child pornography, U.S. Attorney Phillip A. Talbert announced. Ramos must also register as a sex offender. According to court documents, in September 2020, Ramos used Kik Messenger to distribute multiple files containing visual depictions of minors engaging in sexually explicit conduct. He distributed the files using the internet from his residence in Roseville. This case was the product of an investigation by the Federal Bureau of Investigation and the Internet Against Crimes Against Children Task Force. Assistant U.S. Attorneys Rosanne L. Rust and Kristin F. Scott prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those 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: Haymarket Brothers Get 18 Years Total in Fentanyl Conspiracy

component: USAO - Virginia, Western

body_text: CHARLOTTESVILLE, Va. – A pair of brothers from Northern Virginia, who distributed or intended to distribute more than 10,000 pressed fentanyl pills in Culpeper, Virginia and surrounding counties, were sentenced yesterday to more than 18 years of total federal prison time. Thomas Anthony Marshall, 25, and Jonathon Hayden Marshall, 20, both pled guilty in August 2023 to identical charges, that is, one count of conspiring to distribute and possess with the intent to distribute fentanyl and one count of distribution and possessing with the intent to distribute fentanyl. Yesterday, Thomas Marshall was sentenced to 10 years in federal prison and Jonathon Marshall was sentenced to 8 years in federal prison. According to court documents, on several occasions in September 2022 both Thomas and Jonathon Marshall sold pressed fentanyl pills to confidential informants working with the Blue Ridge Narcotics and Gang Task Force. Specifically, on September 1, 2022, Thomas Marshall sold 1,020 fentanyl pills and on September 6, 2022, Thomas and Jonathon Marshall sold 1,987 fentanyl pills. On September 14, 2022, Thomas Marshall sold 1,812 fentanyl pills. On September 27, 2022, the Blue Ridge Narcotics and Gang Task Force executed a search warrant at a residence shared by the Marshall brothers in Fauquier County, Virginia. During the course of the search, law enforcement recovered 6,549 pressed fentanyl pills, $32,642 in cash, and numerous firearms and ammunition. United States Attorney Christopher R. Kavanaugh announced the sentence today. The Drug Enforcement Administration and the Blue Ridge Narcotics and Gang Task Force investigated the case. Assistant U.S. Attorney Ronald M. Huber prosecuted the case.


title: Justice Department Disrupts Prolific ALPHV/Blackcat Ransomware Variant

body_text: MIAMI – The Justice Department announced today a disruption campaign against the Blackcat ransomware group — also known as ALPHV or Noberus — that has targeted the computer networks of more than 1,000 victims and caused harm around the world since its inception, including networks that support U.S. critical infrastructure. Over the past 18 months, ALPHV/Blackcat has emerged as the second most prolific ransomware-as-a-service variant in the world based on the hundreds of millions of dollars in ransoms paid by victims around the world. Due to the global scale of these crimes, multiple foreign law enforcement agencies are conducting parallel investigations. The FBI developed a decryption tool that allowed FBI field offices across the country and law enforcement partners around the world to offer over 500 affected victims the capability to restore their systems. To date, the FBI has worked with dozens of victims in the United States and internationally to implement this solution, saving multiple victims from ransom demands totaling approximately $68 million. As detailed in a search warrant unsealed today in the Southern District of Florida, the FBI has also gained visibility into the Blackcat ransomware group’s computer network as part of the investigation and has seized several websites that the group operated. “In disrupting the BlackCat ransomware group, the Justice Department has once again hacked the hackers,” said Deputy Attorney General Lisa O. Monaco. “With a decryption tool provided by the FBI to hundreds of ransomware victims worldwide, businesses and schools were able to reopen, and health care and emergency services were able to come back online. We will continue to prioritize disruptions and place victims at the center of our strategy to dismantle the ecosystem fueling cybercrime.” “Today’s announcement highlights the Justice Department’s ability to take on even the most sophisticated and prolific cybercriminals,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “As a result of our office’s tireless efforts, alongside FBI Miami, U.S. Secret Service, and our foreign law enforcement partners, we have provided Blackcat’s victims, in the Southern District of Florida and around the world, the opportunity to get back on their feet and to fortify their digital defenses. We will continue to focus on holding the people behind the Blackcat ransomware group accountable for their crimes.” “The FBI continues to be unrelenting in bringing cybercriminals to justice and determined in its efforts to defeat and disrupt ransomware campaigns targeting critical infrastructure, the private sector, and beyond,” said FBI Deputy Director Paul Abbate. “Helping victims of crime is the FBI’s highest priority and is reflected here in the provision of tools to assist those victimized in decrypting compromised networks and systems. The FBI will continue to aggressively pursue these criminal actors wherever they attempt to hide and ensure they are brought to justice and held accountable under the law.” “At the Justice Department, we prioritize victim safety and security,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “In this case, agents and prosecutors worked tirelessly to restore victim networks, but these actions are not the culmination of our efforts, they are just the beginning. Criminal actors should be aware that the announcement today is just one part of this ongoing effort. Going forward, we will continue our investigation and pursue those behind Blackcat until they are brought to justice.” According to the unsealed warrant, Blackcat actors have compromised computer networks in the United States and worldwide. The disruptions caused by the ransomware variant have affected U.S. critical infrastructure – including government facilities, emergency services, defense industrial base companies, critical manufacturing, and healthcare and public health facilities – as well as other corporations, government entities, and schools. The loss amount globally is in the hundreds of millions and includes ransom payments, destruction and theft of proprietary data, and costs associated with incident response. Blackcat uses a ransomware-as-a-service model in which developers are responsible for creating and updating ransomware and for maintaining the illicit internet infrastructure. Affiliates are responsible for identifying and attacking high-value victim institutions with the ransomware. After a victim pays, developers and affiliates share the ransom. Blackcat actors employ a multiple extortion model of attack. Before encrypting the victim system, the affiliate will exfiltrate or steal sensitive data. The affiliate then seeks a ransom in exchange for decrypting the victim’s system and not publishing the stolen data. Blackcat actors attempt to target the most sensitive data in a victim’s system to increase the pressure to pay. Blackcat actors rely on a leak site available on the dark web to publicize their attacks. When a victim refuses to pay a ransom, these actors commonly retaliate by publishing stolen data to a leak website where it becomes publicly available. The FBI Miami Field Office is leading the investigation. Trial Attorneys Christen Gallagher and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kiran Bhat and Brooke Watson for the Southern District of Florida are handling the case. The Justice Department also recognizes the critical cooperation of Germany’s Bundeskriminalamt and Zentrale Kriminalinspektion Göttingen, Denmark’s Special Crime Unit, and Europol. Significant assistance was provided by the U.S. Secret Service and the U.S. Attorney’s Office for the Eastern District of Virginia. The Justice Department’s Office of International Affairs and the Cyber Operations International Liaison also provided significant assistance. Additionally, the following foreign law enforcement authorities provided substantial assistance and support: the Australian Federal Police, the United Kingdom’s National Crime Agency and Eastern Region Special Operations Unit, Spain’s Policia Nacional, Switzerland’s Kantonspolizei Thurgau, and Austria’s Directorate State Protection and Intelligence Service. Victims of Blackcat ransomware are strongly encouraged to contact their local FBI field office at www.fbi.gov/contact-us/field-offices for further information and to determine what assistance may be available. Blackcat affiliates have gained initial access to victim networks through a number of methods, including leveraging compromised user credentials to gain initial access to the victim system. More information about the malware, including technical information about indicators of compromise and recommendations to mitigate its effects, is available from the FBI at www.ic3.gov/Media/News/2022/220420.pdf . Additional information regarding law enforcement’s ongoing investigation into Blackcat is available at www.justice.gov/media/1329536/dl?inline . If you have information about Blackcat, their affiliates, or activities, you may be eligible for a reward through the Department of State’s Rewards for Justice program. Information can be submitted through the following Tor-based tip line (Tor browser required): he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion. For more information about rewards for information on foreign malicious cyber activity against U.S. critical infrastructure, visit https://rfj.tips/SDT55f . ###


title: DOJ Unseals Charges Against Iranian and Chinese Nationals for Procurement Fraud Involving the Acquisition of Components for Drones on Behalf of the Iranian Government

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON - Today, the Department of Justice unsealed an indictment charging two men - Iranian National Hossein Hatefi Ardakani (“Ardakani”) and Chinese National Gary Lam - with crimes related to the procurement of U.S.-manufactured dual-use microelectronics for Iran. Concurrent with this unsealing, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Ardakani and Lam, also identified by OFAC as Lin Jinghe, as well as two other individuals and 10 entities involved in the procurement network used by Ardakani in support of the Islamic Revolutionary Guard Corps Aerospace Force Self Sufficiency Jihad Organization’s one-way attack unmanned aerial vehicle (“UAV” or drone) program. The indictment alleges that between at least September 2014 and September 2015, Ardakani and Lam, who was based in China and Hong Kong, as well as other associates, conspired to illegally purchase and export from the United States to Iran dual-use microelectronics that are commonly used in UAV production, including high electron mobility transistors (HEMTs), monolithic microwave integrated circuit (MMIC) power amplifiers, and analog-to-digital converters. Each of these components is subject to U.S. export controls for anti-terrorism, national security, and regional stability reasons. “Today’s announcements show that we remain focused on disrupting the efforts of Iran and its agents to circumvent U.S. sanctions in support of Iran’s weapons programs, including its drone program, which have been used to support and supply terrorist organizations and other foreign adversaries – such as Russia – around the globe,” said U.S. Attorney Matthew M. Graves. “This whole-of-government approach is one more step in stopping the acquisition of drones for nefarious purposes such as attacks on innocent civilians and civilian infrastructure.” “Today’s coordinated action with the Treasury Department demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.” “U.S. technology has zero place in Iranian UAVs,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod for the Department of Commerce. “As these allegations demonstrate, those who procure dual-use microelectronics for the Islamic Revolutionary Guard Corps will be held accountable.” “Ardakani and his co-conspirators crafted a sophisticated web of front companies to obscure the illicit acquisition of U.S. and foreign technology to procure components for deadly UAVs,” said Special Agent in Charge Michael J. Krol, of Homeland Security Investigations’ New England Office. “These very components have been found in use by Iran’s allies in current conflicts, including in Ukraine. The disruption of these criminal networks by Homeland Security Investigations means that hundreds of thousands of critical UAV components will never again be used for malign purposes.” The indictment further alleges that on four separate occasions Ardakani and his co-conspirators used a web of foreign companies to accomplish their obfuscation and evasion efforts. For example, between June and September 2015, Ardakani and Lam caused an unwitting French company to purchase from a U.S. company several pieces of analog-to-digital converters with applications in wireless and broadband communications, radar and satellite subsystems, multicarrier, multimodal cellular receivers, antenna array positioning, and infrared imaging. Lam then caused a division of the French company to ship the analog-to-digital converters to Hong Kong, where they were reexported to Iran. A variation of this tactic – involving witting and unwitting companies in Canada, Hong Kong, and China – was used on the other three occasions. In addition to the indictment, a separate seizure action targeting Nava Hobbies SDN BHD (“Nava Hobbies”) and its property was unsealed today. Nava Hobbies is one of the 10 entities designated by OFAC in its action announced today. The funds are subject to seizure based on violations of U.S. law, including U.S. economic sanctions targeting Iran and money laundering violations. The seizures, totaling nearly $600,000, aim to further degrade this network’s ability to procure UAV components. Proceedings involving this property remain ongoing. This case is being investigated by the FBI’s Detroit Field Division, led by Special Agent in Charge Cheyvoryea Gibson, Homeland Security Investigations (HSI), the Department of Commerce, Bureau of Industry and Security (BIS), and the Defense Criminal Investigative Service (DCIS).Homeland Security Investigations (HSI), the Department of Commerce, Bureau of Industry and Security (BIS), and the Defense Criminal Investigative Service (DCIS). The case is being prosecuted by Assistant U.S. Attorney Jolie Zimmerman of the U.S. Attorney’s Office for the District of Columbia, with valuable assistance from Assistant U.S. Attorney Sean Heiden of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Heather Schmidt and Brendan Geary of the Counterespionage and Export Control Section of the Justice Department’s National Security Division. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Louisiana Man Pleads Guilty to Unlawful Shipping of Firearms to New York

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Rodell Patterson, age 51, of Baton Rouge, Louisiana, pled guilty today to engaging in the firearms business without a license. United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement. Patterson admitted to mailing eight packages containing a total of 10 firearms from Baton Rouge to the Capital Region in 2021 and 2022. Two of those firearms were recovered in June 2022 in the Troy, New York, apartment of a man on parole. Patterson acknowledged that he knew these transfers were unlawful, and he admitted to engaging in extensive conversations with the recipient of the packages about the types of firearms and the amount of payment. At sentencing, Patterson faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Patterson still faces a charge in the United States District Court for the Middle District of Louisiana for possessing a firearm as a previously convicted felon. That charge is merely an accusation of which Patterson is presumed innocent unless and until proven guilty. If convicted of that charge, Patterson faces up to 15 years in prison. ATF’s Albany Field Office investigated the case with assistance from the U.S. Attorney’s Office for the Middle District of Louisiana and ATF’s Baton Rouge Field Office. Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.


title: New Jersey Man Sentenced to 168 Months for Cocaine Conspiracy

body_text: ALBANY, NEW YORK – Richard “Richie” Sinde, age 59, of Fort Lee, New Jersey, was sentenced today to 168 months in prison, to be followed by 5 years of supervised release, for conspiring to traffic about 15 kilograms of cocaine in March and April 2021. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement. Sinde, and Jeffrey Civitello Sr. and Jeffrey C. Civitello Jr., both of Schenectady, New York, were convicted on all counts following an 8-day trial in April 2023 . Sinde has prior federal convictions for heroin trafficking and unauthorized use of stolen credit cards, and prior state convictions for arson, enterprise corruption, conspiracy, and criminal tax fraud. The trial evidence demonstrated a conspiracy between five men: the three defendants on trial, as well as Christopher J. Kelly, of Brooklyn, New York, and Robert J. Ingrao, of Lodi, New Jersey. As part of the conspiracy, Kelly and Sinde delivered 3 kilograms of cocaine to Civitello Sr. in Schenectady on March 29, and Kelly and Sinde an additional 3 kilograms to Civitello Sr. on March 31. Also on March 31, the Civitellos ordered more cocaine and suggested that Kelly use a 2018 Jeep Grand Cherokee owned by Civitello Jr., which contained, in its trunk, a sophisticated, hidden compartment, also known as a “trap.” Unbeknownst to the conspirators, the DEA had placed a court-authorized tracker on the Jeep several months prior, as part of an investigation of Civitello Jr. Sinde then drove the Jeep from Schenectady to Fort Lee, and the following evening met Kelly in Breezy Point, New York, on the Rockaway Peninsula, where Kelly and Sinde loaded up the Jeep’s hidden compartment with 9 kilograms of cocaine to be delivered the following day to the Civitellos in Schenectady. The following day, on April 2, 2021, Ingrao went to Sinde’s house and got into the blue Jeep, driving it north on Interstate 87. A New York State Police Trooper, at the DEA’s request, conducted a stop on Ingrao in Greene County. The Trooper then located 9 kilograms of cocaine in the Jeep’s hidden compartment. As part of the conspiracy, the Civitellos were arranging for a “trap” to be installed in another Jeep used by Sinde, so that Sinde could continue to traffic drugs to the Civitellos after Kelly went to state prison for a prior cocaine case; they abandoned that plan following the seizure of 9 kilograms of cocaine from Civitello Jr.’s Jeep on April 2. United States District Judge Mae A. D’Agostino previously imposed the following sentences in this case: Civitello Sr. was sentenced to 120 months in prison, to be followed by a 4-year term of supervised release. Kelly was sentenced to 41 months in prison, to be followed by a 4-year term of supervised release, and to pay a $25,000 fine. Ingrao was sentenced to 37 months in prison, to be followed by a 3-year term of supervised release. Civitello Jr. is scheduled to be sentenced on March 5, 2024. This case was investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, the Columbia County Sheriff’s Office, and the New York State Police. Assistant U.S. Attorneys Michael Barnett and Dustin C. Segovia are prosecuting this case.