title: Guatemalan National Charged With Illegal Reentry

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cesar A. Reyes-Garcia, age 43, of Guatemala, was indicted on March 6, 2024, by a federal grand jury for illegal reentry into the United States by a previously deported alien. According to United States Attorney Gerard M. Karam, the indictment alleges that Reyes-Garcia was previously removed from the United States on June 11, 2015, through Harlingen, Texas, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on January 16, 2023, Reyes-Garcia was encountered in Lebanon County, Pennsylvania. This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations. Assistant United States Attorney Stephen Dukes is prosecuting the case. The maximum penalty under federal law for this offense is two years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


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

component: USAO - Massachusetts

body_text: BOSTON – A Chicago-area man pleaded guilty on March 8, 2024 in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States. Joseph Williams, 32, of University Park, Ill., pleaded guilty to one count of conspiracy to commit wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 28, 2024. Williams was indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong, rap artist Herbert Wright and Demario Sorrells. Williams was a rap artist known as “Joe Rodeo,” “Rockstar Rodie,” or “Rodeo,” based in the Chicago area. Beginning in at least March 2017 through November 2018, Williams, Sorrells, Wright and allegedly Strong and two other co-defendants, conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders’ names, addresses, security codes and account expiration dates. The defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Wright and his alleged co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies who then charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions. Williams received illicit account information allegedly from Strong on numerous occasions, and used it to make purchases knowing the account information was stolen. He also took numerous private jets, commercial flights and stayed in hotels that were paid for with the illicit account information. Although Williams did not personally conduct all of the transactions that benefitted him, he knew (or reasonably should have known) that others were purchasing his flights and hotels in a fraudulent manner. In total, Williams was responsible for $102,000 in victim losses. On Jan. 11, 2024 , Wright was sentenced to three years probation and was ordered to pay restitution and forfeiture of $139,968. In July 2023 , Wright pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official. On Feb. 2, 2024 , Sorrells pleaded guilty to one count of conspiracy to commit wire fraud and is scheduled to be sentenced on May 28, 2024. The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case. The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Lamor Whitehead, Brooklyn Church Leader, Convicted Of Fraud, Extortion, And False Statements

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict last night against LAMOR WHITEHEAD on two counts of wire fraud, one count of attempted wire fraud, one count of attempted extortion, and one count of making false statements to federal law enforcement agents. U.S. District Judge Lorna G. Schofield presided over the two-week trial. U.S. Attorney Damian Williams said: “As a unanimous jury found, Lamor Whitehead abused the trust placed in him by a parishioner, tried to obtain a fraudulent loan using fake bank records, bullied a businessman for $5,000, tried to defraud him out of far more than that, and lied to federal agents. Whitehead’s reprehensible lies and criminal conduct have caught up with him, as he now stands convicted of five federal crimes and faces time in prison.” According to the allegations in the Indictment and the evidence at trial: LAMOR WHITEHEAD, who leads a church in Brooklyn, New York, stole from his own parishioners, sought to defraud and extort a businessman, and committed loan fraud. First, WHITEHEAD induced one of his parishioners to invest approximately $90,000 of her retirement savings with him by promising to use the money to help her buy a home. He then spent the money on luxury goods and other personal expenses and, when she demanded to be paid back, he continued to lie to avoid returning the money. Second, WHITEHEAD extorted a businessman for $5,000, then attempted to convince the same businessman to lend him $500,000 and give him a stake in certain real estate transactions in return for favorable actions from the Mayor of New York City, even though WHITEHEAD knew he could not obtain the favors he promised. Third, WHITEHEAD submitted a fraudulent application for a $250,000 business loan, including doctored bank statements that falsely claimed WHITEHEAD had millions of dollars in the bank and hundreds of thousands of dollars in monthly revenue. Finally, when speaking with Federal Bureau of Investigation (“FBI”) agents who were executing a search warrant outside WHITEHEAD’s mansion in New Jersey, WHITEHEAD falsely claimed that he had no cellphones other than the phone he was carrying when, in fact, WHITEHEAD had and regularly used a second cellphone, which was inside his house at the time. * * * WHITEHEAD, 45, of Paramus, New Jersey, was convicted of two counts of wire fraud, one count of attempted wire fraud, and one count of attempted extortion, each of which carries a maximum sentence of 20 years in prison, and one count of making false statements, which carries a maximum sentence of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of the FBI. This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Jane Kim, and Derek Wikstrom, with the assistance of Paralegal Specialist Christopher De Grandpre, are in charge of the prosecution.


title: Shiprock Man Charged with Second Degree Murder

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Morrie Lee Begaye appeared in federal court on an indictment charging him with second degree murder. Begaye, 36, of Shiprock, and an enrolled member of the Navajo Nation, will remain in custody pending trial which has not been scheduled. According to the indictment, on June 26, 2022, Begaye unlawfully killed John Doe with malice aforethought An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the current charge, Begaye faces up to life imprisonment. The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant U.S. Attorney Brittany DuChaussee is prosecuting the case. # # #


title: State Prisoner Indicted For Threatening To Kill A Federal Judge

component: USAO - Florida, Middle

body_text: Jacksonville, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging Marcus Pratt (38, Crestview, Florida) with three counts of mailing threatening communications and three counts of influencing, impeding, or retaliating against a federal judge. Pratt faces a maximum penalty of 10 years in federal prison on each count. The indictment also notifies Pratt that the United States intends to forfeit any assets alleged to be traceable to proceeds of the charged offenses. According to the indictment, Pratt sent a handwritten letter through the U.S. Postal Service dated August 2, 2023, addressed to the federal courthouse in Miami, threatening that his associates would kill a certain United States District Judge. Pratt sent another hand-written letter dated September 23, 2023, threatening that Pratt’s associates were going to kill the judge and whoever was at his house when they got there. Finally, Pratt sent a handwritten letter dated October 10, 2023, telling the judge that the defendant’s associates would kill him very soon. All letters were signed by Pratt and threatened to kill the judge due to the performance of his official duties and with the intent to retaliate against the judge on the account of the performance of his official duties. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. The case was investigated by the Federal Bureau of Investigation and the United States Marshal Service. It is being prosecuted by Assistant United States Attorneys Rachel Lasry and Kirwinn Mike.


title: New York-Presbyterian/Brooklyn Methodist Hospital Settles Health Care Fraud Claims for $17.3 Million

component: USAO - New York, Eastern

body_text: Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with New York-Presbyterian/Brooklyn Methodist Hospital. The settlement agreement requires the hospital to pay $17.3 million to resolve allegations that it paid unlawful kickbacks to physicians at the hospital’s chemotherapy infusion center. The payments were made pursuant to a contractual arrangement that linked the compensation physicians received to the number of referrals the physicians made for services at the Center. The agreement also resolves claims that physicians at the infusion center failed to adequately supervise the chemotherapy services. The settlement resolves claims under the federal and New York State False Claims Acts. Of the total settlement amount, $16.410 million is to be paid to the federal government, and $890,000 is to be paid to New York State. The Hospital voluntarily self-disclosed the issues to the United States. “This settlement addresses a compensation scheme that incentivized physicians to make referrals for services based on how much they would be paid and were essentially kickbacks,” stated United States Attorney Peace. “New York-Presbyterian/Brooklyn Methodist Hospital voluntarily self-disclosed the conduct to the United States, which allowed it to mitigate the penalties associated with the conduct.” To ensure that physicians make medical decisions based solely on the needs of their patients, Medicare and Medicaid rules prohibit physicians from receiving any kind of remuneration in exchange for patient referrals for services. The United States’ investigation of New York-Presbyterian/Brooklyn found that physicians at a chemotherapy infusion center affiliated with the hospital were paid based, in part, on the volume of referrals they generated for it. Medicare and Medicaid rules also require that those billing for medical services be involved in the services. A hospital, for instance, cannot bill for the services of a physician if that physician did not participate in the patient care. The rules recognize that non-physicians, like nurses, provide care to patients; such care is permissible and, often, desirable. But, in many instances, such care must be provided under the supervision of a physician who is available to assist in the care if need be. At the infusion center at issue in this matter, Medicare and Medicaid were billed for services provided by non-physicians even in instances in which physicians were not available to adequately supervise the services. The matter was handled by Assistant United States Attorney Michael Blume of the Office’s Civil Division.


title: Two Former City of Miami Police Department Employees Plead Guilty to COVID-19 Relief Fraud

component: USAO - Florida, Southern

body_text: MIAMI – Two former City of Miami Police Department (MPD) employees pled guilty for their involvement in separate COVID-19 relief fraud cases. U.S. v. Sheana Haslem, Case No. 24-20037-Cr-WILLIAMS/GOODMAN On March 6, 2024, Sheana Haslem, 38, who was formerly a MPD Police Staffing Specialist, pled guilty to wire fraud in connection with her fraudulent applications for a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL) advance, before U.S. District Judge Kathleen M. Williams. According to the facts admitted at the change of plea, on July 6, 2020, Haslem, who at the time was employed full-time by the MPD, submitted and with the assistance of an associate, caused to be submitted, to the U.S. Small Business Administration (SBA), a fraudulent EIDL application claiming to be an independent contractor and the 100% owner of a hair and nail salon business operating under her own name. That EIDL application falsely certified that for the 12-month period prior to January 31, 2020, Haslem’s business had gross revenues of approximately $89,993 and 15 employees. As a result of this fraudulent application, Haslem obtained from the SBA a $10,000 EIDL advance. Subsequently, on February 27, 2021, Haslem submitted, and with the assistance of the same associate, caused to be submitted, a fraudulent PPP loan application claiming to be an independent contractor operating a business under her own name. That application falsely represented the business’ average monthly payroll as being $8,333, and as part of the application process, Haslem submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, claiming she had a security officer business that had a gross income of $102,874, no expenses, and a net profit of $102,874. As a result of this fraudulent application, Haslem obtained a $20,832 PPP loan from an SBA approved lender. Haslem is scheduled for sentencing on May 28, before Judge Williams in Miami, Florida, where she faces a maximum sentence of twenty years in prison. U.S. v. Keandra Carter, Case No. 23-20475-Cr-WILLIAMS/GOODMAN On February 13, 2024, former MPD Public Service Aide Keandra Carter, 35, pled guilty before Judge Williams to wire fraud in connection with her fraudulent application for a PPP loan. According to the facts admitted at the change of plea, on April 4, 2021, Carter, who was working as a full-time MPD Public Service Aide, submitted a false and fraudulent PPP loan application claiming to be a sole proprietor operating a business under her own name. That PPP loan application falsely and fraudulently represented that her sole proprietorship’s 2019 gross income was $1,100,000. In support of that application, Carter submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, falsely stating that she was a “hair braider” and that her business had a gross income of $1,100,000. As a result of this false and fraudulent application, Carter obtained a $20,833 PPP loan from an SBA-approved PPP lender based in Pennsylvania. Carter is scheduled for sentencing on May 2, before Judge Williams in Miami, where she faces a maximum sentence of up to 20 years in prison. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, SBA Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, announced the guilty pleas. The FBI’s Miami Area Corruption Task Force, which includes task force officers from MPD’s Internal Affairs Section, and the SBA-OIG investigated the cases. Assistant U.S. Attorney Edward N. Stamm is prosecuting the cases. In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . 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 . ###


title: Prisoner Who Escaped from Bloomfield Halfway House Pleads Guilty

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that HECTOR SANTIAGO, 29, pleaded guilty yesterday in Hartford federal court to escaping from the custody of the Attorney General. According to court documents and statements made in court, on November 18, 2019, Santiago was sentenced in Hartford federal court to 69 months of imprisonment for a narcotics trafficking offense. On June 23, 2023, he was transferred from the U.S. Penitentiary in Lee County, Virginia, to the Drapelick Center, a Residential Reentry Center (halfway house) in Bloomfield, to complete his custodial sentence. On September 27, 2023, Santiago left the facility and failed to return. He was located and arrested in Hartford on February 9, 2024. Santiago has been detained since his arrest. At sentencing, which is not scheduled, Santiago faces a maximum term of imprisonment of five years. This matter was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Sean P. Mahard.


title: Two Florida Residents Plead Guilty to Conspiring to Sell and Export Aircraft Parts with Counterfeit Airworthiness Approval Tags

body_text: MIAMI - On March 6, Daniel Navarro, 50, of Miami Lakes, Florida, the former Vice President of, Sofly Aviation Services (Sofly), an aviation parts distribution company, and Jorge Guerrero, 71, of Hialeah, Florida, a Procurement & Asset Management Specialist for Sofly, both pled guilty to one count of conspiracy to defraud the United States. “The prosecutors in our office, alongside our Department of Defense and Department of Transportation partners, are committed to protecting foreign and domestic airlines from people peddling aircraft parts that they falsely and dangerously claim to be airworthy,” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Everyone must comply with established regulations in order to protect travelers and preserve aviation safety.” According to court records, beginning in 2012 and continuing into 2019, Navarro and Guerrero purchased “as removed” aircraft parts and resold them using certificates that falsely claimed the parts to be airworthy under the regulations of the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA). The fraudulent approval tags represented those “as removed” parts to be overhauled, tested/inspected or repaired, which misled their buyers into believing them to be airworthy. Most often, Navarro and Guerrero would use an FAA approved repair station’s FAA certificate number to falsely certify the part to have been overhauled, tested/inspected or repaired by that repair station, when in fact they never were. According to the court documents, those parts were sold to Canadian airlines and a U.S. Department of Defense contractor. “Falsifying the airworthiness of aircraft parts poses a significant danger to the public and our service members,” said Special Agent-in-Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “These guilty pleas demonstrate our commitment to root out corruption and bringing to justice those who compromise the safety and readiness of aircraft for personal gain.” “The guilty pleas in this investigation should send a clear signal that nefarious schemes that comprise the integrity of the aviation industry’s supply chain for commercial and military aircraft will not be tolerated,” said Joseph Harris, Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General (DOT OIG), Southern Region. “We will continue working with our federal, law enforcement, and prosecutorial partners to disrupt fraudulent activities that adversely impact aviation safety.” A sentencing hearing is scheduled for Navarro and Guerrero on May 23 before U.S. District Judge Federico A. Moreno. Navarro and Guerrero each face a maximum term of imprisonment of five years, followed by a term of supervised release of up to three years, for the offense of conviction. The court may also impose a fine of up to $250,000 and must order restitution. As part of the plea agreement, Navarro and Guerrero agreed to voluntarily forfeit any property acquired as a result of the offense. The judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. DOT OIG conducted this investigation jointly with DCIS and with assistance from the FAA. Assistant U.S. Attorney Zachary Keller is prosecuting the case. Assistant U.S. Attorney Sara Klco is handling asset forfeiture. 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 No. 23-CR-20416. ###


title: Operators of Large-Scale Marriage Fraud “Agency” Sentenced

body_text: BOSTON – Four California-based individuals have been sentenced in federal court in Boston for their roles in running a large-scale marriage fraud “agency” that arranged hundreds of sham marriages for the primary purpose of circumventing immigration laws. This included, among other things, obtaining green cards under the Violence Against Women Act (VAWA) by claiming falsely that the undocumented clients had been abused by American spouses. The defendants, all Philippine nationals residing in Los Angeles, were arrested and charged along with seven others with conspiracy to commit marriage fraud and immigration document fraud in April 2022 . Marcialito Biol Benitez, a/k/a “Mars,” 50, was sentenced on March 7, 2024 by U.S. District Court Judge Denise J. Casper to 22 months in prison and three years of supervised release. Benitez pleaded guilty in September 2023 . Also on March 7, 2024, Juanita Pacson, 48, was sentenced by Judge Casper to two years of supervised release with the first four months on home detention after previously pleading guilty in September 2023. Engilbert Ulan, 43, was sentenced on March 6, 2024 by Judge Casper to 14 months in prison and three years of supervised release. Ulan was convicted by a federal jury in November 2023 . On Jan. 11, 2024, Nino Valmeo, 47, was sentenced by Judge Casper to three years of supervised release with the first six months on home confinement after pleading guilty in August 2023. Benitez, with the help of co-defendants, operated what he and others referred to as an “agency” that arranged hundreds of sham marriages between foreign national “clients” and United States citizens, including at least one foreign national who resided in Massachusetts. The agency then prepared and submitted false petitions, applications and other documents to substantiate the sham marriages and secure adjustment of clients’ immigration statuses for a fee of between $20,000 and $35,000 in cash. Benitez operated the agency out of brick-and-mortar offices in Los Angeles, where he employed co-defendants Ulan and Valmeo as staff. Ulan and Valmeo assisted with arranging marriages and submitting fraudulent marriage and immigration documents for the agency’s clients. Benitez relied on several other co-conspirators to recruit U.S. citizens to marry the agency’s clients in exchange for payment. After pairing foreign national clients with citizen spouses, Benitez’s agency staged fake wedding ceremonies at chapels, parks and other locations, performed by hired online officiants. Pacson, a friend of these co-defendants who worked at one of the chapels, assisted with sham wedding ceremonies and marriage documents. For many clients, the agency would take photos of undocumented clients and citizen spouses in front of prop wedding decorations for later submission with immigration petitions. Benitez’s agency then submitted fraudulent, marriage-based immigration petitions to U.S. Citizenship and Immigration Services (USCIS), the federal agency responsible for granting lawful permanent resident status. Benitez, Ulan, Pacson, and others, advised clients about creating and maintaining the appearance of legitimate marriage to their spouses. Ulan conducted practice interviews with the agency’s clients and their fake spouses for the purpose of preparing couples to pass required interviews with immigration authorities. He coached the sham couples to provide the same fabricated answers to questions posed during green card interviews and conceal the fraudulent nature of the marriages. Benitez, Ulan, Valmeo, and Pacson assisted clients with preparing fraudulent supporting documents submitted as “evidence” of the marriages’ legitimacy. Ulan, Valmeo and Pacson also rented the use of their apartment addresses to clients who lived outside of Los Angeles so those clients could list these addresses as their own on green card applications and related documents, to make it appear to immigration authorities that they were living with their sham spouses in the Los Angeles area. Ulan and Valmeo also received cash commissions for referring new clients to the agency. Benitez’s agency would assist certain clients – typically those whose spouses became unresponsive or uncooperative – with obtaining green cards under the Violence Against Women Act (VAWA) by claiming the undocumented clients had been abused by alleged American spouses. Specifically, Benitez, Valmeo, and others, would submit fraudulent applications on clients’ behalf for temporary restraining orders against spouses based on fabricated domestic violence allegations. Benitez’s agency would then submit the restraining order documentation along with immigration petitions to USCIS, in order to take advantage of VAWA provisions that permit non-citizen victims of spousal abuse to apply for lawful permanent resident status without their spouses’ involvement. Benitez’s agency arranged sham marriages and submitted fraudulent immigration documents for at least 600 clients between October 2016 and March 2022. Several co-defendants were previously sentenced by Judge Casper for their roles in this scheme. Peterson Souza, who referred non-citizens to the agency for a fee was sentenced to five months in prison and three years of supervised release with the first five months on home detention, and Felipe David, who referred clients to the agency for assistance with VAWA-based applications was sentenced to three years of supervised release. Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; Chad Plantz, Special Agent in Charge of Homeland Security Investigations in San Diego; and Alanna Ow, Director of U.S. Citizenship & Immigration Services, San Diego District made the announcement today. The U.S. Attorney’s Office for the Central District of California provided valuable assistance in this matter. Assistant U.S. Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit prosecuted the case.


title: Drug Traffickers Sentenced for Importing Fentanyl and Methamphetamine from Mexico to Metro-Atlanta

component: USAO - Georgia, Northern

body_text: ATLANTA – Alba Ordoñez-Ordoñez has been sentenced to federal prison for conspiring to transport and distribute fentanyl disguised as oxycodone pills and methamphetamine, in Metro-Atlanta. Jose Guadalupe Canizales-Rivera was also sentenced for his role in assisting Ordoñez-Ordoñez with her methamphetamine operation. “These sentences reflect the grave risks to public safety created by drug traffickers who disguise dangerous narcotics as legitimate medication,” said U.S. Attorney Ryan K. Buchanan. “We are grateful to our federal and local law enforcement partners for their collaboration in helping to keep our communities safer from deadly drugs like fentanyl and methamphetamine.” “Together, we were able to prevent very dangerous drugs from reaching the streets. I’m proud to stand alongside our partner agencies as we work to stop these criminal enterprises that pollute our neighborhoods with their poison,” said Acting Special Agent in charge Anthony J. Patrone who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI will continue to work with our federal, state and local law enforcement partners to disrupt and dismantle these drug trafficking organizations and prevent them from flooding our communities with illicit drugs.” According to U.S. Attorney Buchanan, the charges and other information presented in court: on February 17, 2021, U.S. Customs and Border Protection officers in Erlanger, Kentucky conducted a border search of a shipment bound for Georgia. The shipment, which contained an air conditioning unit, entered the United States from Mexico. The search revealed more than two kilograms of a white powder hidden inside the compressor of the air conditioner, which tested positive for methamphetamine. Homeland Security Investigations special agents and task force officers in Atlanta made a controlled delivery of the drugs to the shipment’s intended destination, a residence in Norcross, Georgia. Alba Ordoñez-Ordoñez, who was accompanied by Jose Guadalupe Canizales-Rivera, arrived at the location and signed for the package. Ordoñez-Ordoñez and Canizales-Rivera were disassembling the air conditioner at the same time agents executed a search warrant at the residence. Inside the residence, agents discovered over 700 grams of crystal methamphetamine, a mailed package containing more than 4,000 pills with markings like oxycodone that actually contained lethal amounts of fentanyl, and drug trafficking paraphernalia. Further investigation revealed that Ordoñez-Ordoñez had previously traveled to Texas to obtain and transport to her residence approximately 16 kilograms of methamphetamine. She then manufactured and crystalized this methamphetamine in her kitchen. During this process, she exposed her six-year-old daughter to the drug fumes, causing the child to become ill. Alba Ordoñez-Ordoñez, 43, of Honduras, was sentenced on March 12, 2024, by U.S. District Judge Steven C. Jones, to 138 months of imprisonment, followed by five years of supervised release. Jose Guadalupe Canizales-Rivera, 33, of Mexico, was previously sentenced on August 9, 2022, to five years, three months in prison to be followed by five years of supervised release. This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with invaluable assistance provided by U.S. Customs and Border Protection. Assistant U.S. Attorneys Calvin A. Leipold, III and Rebeca M. Ojeda prosecuted the case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Atlanta Strike Force is to disrupt, dismantle, and prosecute the highest-level members of international drug cartels and transnational criminal organizations that have operations in metro Atlanta and throughout the United States. For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: District Man Admits Defrauding Covid-19 Tenant Assistance Program

component: USAO - District of Columbia

body_text: WASHINGTON – Ronald Allen, Jr., 54, of Washington, D.C., pleaded guilty today in Superior Court to one count of first-degree theft and one count of false statements for fraudulently obtaining and keeping $31,044 from a Covid-19 tenant assistance program, announced U.S. Attorney Matthew M. Graves and Daniel W. Lucas Inspector General for the District of Columbia. At today’s plea hearing, Allen admitted that in July and September of 2021, he submitted false information on two separate applications to the Stronger Together by Assisting You (STAY DC) program, a DC government program established in 2021 to help cover rent and utilities for renters suffering hardship from the Covid-19 pandemic. Allen falsely stated that he had earned no income in 2020 or 2021, and falsely stated that his work had stopped because of the pandemic when, in fact, he maintained steady income during both years from several sources. Based on Allen’s false statements, the DC government sent Allen two checks, totaling $31,044, that Allen had promised to use to pay back rent and utilities. Allen admitted that he did not use any of that money to pay his outstanding rent obligations, or utilities, as required by the terms of the program, and instead spent all of the STAY DC money on luxury goods, travel, dining, and other personal expenses. As part of the plea agreement, Allen agreed to pay full restitution, in the amount of $31,044. The Honorable Jason Park accepted Allen’s guilty plea and scheduled sentencing for May 3, 2024. In announcing the guilty plea, U.S. Attorney Graves and Inspector General Lucas commended the work of those who investigated the case from the District of Columbia Office of the Inspector General. The case was prosecuted by Special Assistant U.S. Attorney Micah Bluming, on detail from the DC Office of the Attorney General to prosecute matters involving fraud and public corruption.


title: Federal Judge Finds Man Guilty of Obstructing the Freedom of Access to a Clinic Entrance

component: USAO - South Carolina

body_text: COLUMBIA, S.C. — Steven Clark Lefemine, 68, of West Columbia was found guilty yesterday of violating the Freedom of Access to a Clinic Entrances (FACE Act) by a federal judge following a bench trial. This is the first FACE Act conviction in South Carolina. The FACE Act provides criminal penalties for blocking access to any facility that provides reproductive health care services, including abortions. Evidence presented during trial showed that on Nov. 15, 2022, Lefemine sat in front of the entrance to Planned Parenthood South Atlantic (PPSA) in Columbia and blocked access to the facility. Testimony provided by employees of PPSA indicated that the clinic provides a litany of reproductive services, including birth control, mental health counseling, pregnancy testing and planning, prenatal and postpartum services as well as abortion. PPSA staff is familiar with Lefemine because he frequently protests the operation of the clinic. PPSA staff members preserved the incident via video and audio recording. Lefemine elected to act as his own attorney during the case. During his testimony, he admitted blocking the doors to the clinic to prevent the clinic from performing abortions. “We will protect South Carolinians’ right to peacefully protest, but we will also protect their right to access healthcare facilities,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Lefemine’s protest became unlawful when he physically prevented patients from entering Planned Parenthood.” United States District Judge Joseph A. Anderson presided over the bench trial, which lasted one day. Lefemine faces a maximum penalty of six months in federal prison. He also faces a fine of up to $10,000, and one year of supervision to follow the term of imprisonment. Judge Anderson will sentence Lefemine after receiving and reviewing a sentencing report prepared by the U.S. Probation Office This case was investigated by the FBI Columbia Field Office and the Columbia Police Department. Assistant U.S. Attorney T. DeWayne Pearson is prosecuted the case. ###


title: New Orleans Man Sentenced  for Multiple Federal Offenses Related to Drugs, Firearm, and Possessing Car Stolen from Norfolk Southern Railyard

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS, LOUISIANA- NORMAN ANDREWS , age 24, a resident of New Orleans, was sentenced on March 5, 2024 by U.S. District Judge Jay C. Zainey, after previously pleading guilty to charges in a multi-count indictment. ANDREWS was sentenced to 78 months imprisonment, followed by 5 years of supervised release, and a $300 mandatory special assessment fee for his convictions for possession of a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659; possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). According to court documents, ANDREWS was arrested, following a brief chase, on February 11, 2023 in the French Quarter by a New Orleans Police Department officer. When ANDREWS was finally apprehended, he possessed a Glock Model 19x firearm with a loaded, extended magazine containing 31 rounds, a black ski mask, two blister packs of tapentadol, two bags of marijuana, and over $2,000 in cash. On March 27, 2023, a Ford Explorer Timberline was stolen from the Norfolk Southern Automotive Distribution Facility. Andrews was observed on surveillance video driving the Ford Explorer, two days after it was stolen. 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. This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.


title: Man Accused of Defrauding Investors in Sports Betting Fund

body_text: ST. LOUIS – A man from Pennsylvania has been indicted in St. Louis and accused of defrauding investors in a sports betting fund for more than five years. Elijah A. Goshert, 47, was indicted on Nov. 15, 2023, on three counts of wire fraud. Goshert was arrested in Pennsylvania on Feb. 28, 2024, and pleaded not guilty in U.S. District Court in St. Louis Tuesday. The indictment says Goshert, who had a day job at a telecommunications company, told investors that he ran an investment fund called the Magellan Sports Fund. Goshert said the fund placed sports bets using a "sophisticated computer algorithm" that substantially reduced risks, the indictment says. Goshert told investors he would not make any money unless the bets turned a profit, but the indictment says Goshert actually used investors’ money for his personal expenses, including Disney vacations, private school tuition and mortgage payments. Goshert sent fraudulent “updates” and account statements to investors and lied to investors when they tried to withdraw cash, the indictment says. At least 10 investors lost more than $500,000, the indictment says. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. Each wire fraud charge carries a potential penalty of up to 20 years in prison, a $250,000 fine, or both prison and a fine. The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.


title: Convicted Child Exploitation Offender From Irwin Sentenced to Prison Term Above Sentencing Guideline Range for Violating Federal Supervised Release

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A resident of Irwin, Pennsylvania, was sentenced in federal court on March 11, 2024, to 15 months of incarceration for violating the conditions of his federal supervised release imposed as a result of his conviction in two prior cases where he illegally possessed child sexual abuse material, United States Attorney Eric G. Olshan announced today. United States District Judge Christy C. Weigand imposed the sentence on Thomas Wesley Crosby IV, 30. According to information presented to the Court, Crosby was living in New Mexico in 2018 while serving in the United States Air Force. A federal search warrant at his residence resulted in child sexual abuse material being located on his computer, tablet, cellphone, and thumb drives. Crosby returned to Western Pennsylvania after receiving a less than honorable discharge. A search of Crosby’s cellphone recovered on October 16, 2020, in Pennsylvania revealed three times more the number of child pornography videos than were located during the New Mexico search in 2018. Based on the seizures in New Mexico and Pennsylvania, Crosby was indicted and pleaded guilty to federal charges of possessing visual depictions of minors engaging in sexually explicit conduct. He was sentenced in New Mexico to time served, followed by 15 years of supervised release. Crosby returned to Western Pennsylvania where he was serving his term of federal supervised release. Soon thereafter, monitoring software indicated that Crosby had been using his computer to view computer-generated and anime-type images of infant females engaged in sexually explicit conduct. During his March 11 hearing before Judge Weigand, Crosby did not contest the allegation that he had again possessed and viewed illegal sexual images of children. Judge Weigand stated that a sentence above the discretionary four-to-ten-month sentencing guidelines range was warranted in this matter. In addition to 15 months of incarceration, Judge Weigand also imposed another ten-year period of supervision and banned Crosby’s possession and use of computers, a cellphone, or the internet for a period of 60 days after his release from federal prison. Crosby was detained at the conclusion of the hearing. Assistant United States Attorney Ross E. Lenhardt represented the United States in this supervised release revocation proceeding. United States Attorney Olshan commended the United States Probation Office for their outstanding work on this matter.


title: Justice Department Sues to Shut Down Central Florida-Based Return Preparer

component: Tax Division

body_text: The Justice Department filed a complaint today seeking to bar a central Florida-area return preparer from owning or operating a tax return preparation business and preparing tax returns for others. The civil complaint against Kenia Rodriguez, also known as Kenia Legon, was filed in the U.S. District Court for the Middle District of Florida. The complaint alleges that Rodriguez, through a fictitious entity called Rodriguez Tax Services, prepared federal income tax returns on which she claimed extensive fraudulent deductions and credits to purposely underreport the taxes her customers owed and claimed refunds they were not entitled to receive. Specifically, the complaint alleges that Rodriguez prepared returns with false or inflated itemized deductions claimed on Form 1040 Schedule A and false claims for residential clean energy credits. The United States contends that Rodriguez hid her tax preparation activity by failing to properly identify herself on the tax returns that she prepared. According to the IRS, anyone who is paid to prepare or who assists in preparing federal tax returns is legally required to have a valid Preparer Tax Identification Number (PTIN), and paid preparers must sign and include their PTIN on the return. Not signing a return, commonly known as “ghost preparation,” is often a red flag that a preparer is attempting to avoid detection by the IRS. The complaint alleges that Rodriguez operated as a “ghost preparer.” By repeatedly understating her customers’ tax liabilities, the complaint alleges that the United States has been harmed by Rodriguez’s conduct, resulting in the significant loss in tax revenue of over $6 million since 2021. In addition to seeking an injunction against Rodriguez, the government requests an order of disgorgement to prevent Rodriguez from profiting from violating the internal revenue laws. Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement. Attorneys from the Tax Division are handling the case. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid "ghost preparers" and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details. Rodriguez Complaint (Filed).pdf


title: McKees Rocks Drug Trafficker Sentenced to Prison Term

body_text: PITTSBURGH, Pa. - A resident of McKees Rocks, Pennsylvania, has been sentenced in federal court to 12 months plus one day of imprisonment, to be followed by three years of supervised release, on his conviction of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today. United States District Judge William S. Stickman imposed the sentence on Eric Howard, 36. According to information presented to the Court, between February and June 2023, Howard conspired to distribute and possess with intent to distribute a quantity of fentanyl, a Schedule II controlled substance. Prior to imposing sentence, Judge Stickman stated that the defendant had a significant record of drug trafficking and that a sentence of incarceration should serve as a deterrent from further drug trafficking activity. Assistant United States Attorneys Katherine C. Jordan and Douglas C. Maloney prosecuted this case on behalf of the government. United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Howard. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: Argus Information & Advisory Services Agrees to Pay $37M to Settle Allegations that it Misused Data Obtained Under Government Contracts

component: Civil Division

body_text: Argus Information & Advisory Services Inc. (Argus) has agreed to pay the United States $37 million to resolve claims under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), in connection with its access to and use of credit card data obtained pursuant to contracts with various federal regulators, including the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB) and the Consumer Financial Protection Bureau (CFPB). Argus is incorporated in Delaware, with offices in White Plains, New York. Argus analyzes economic transactions, credit card data and credit bureau data to provide benchmarking and market analysis products to commercial and government clients. Between March 2009 and 2020, Argus executed contracts with the OCC, the independent bureau of the Department of Treasury that charters and regulates national banks and federal savings associations; the FRB, the independent federal regulator for certain banks and bank holding companies; the CFPB, an independent regulator of consumer practices at certain depository institutions; and the Federal Reserve Bank of Philadelphia. Under these contracts, Argus was tasked with performing validating, aggregating, storage, retrieval and reporting services for anonymized credit card data that the regulatory agencies directed the banks to provide. The contracts each placed restrictions on Argus’ ability to use, disclose or distribute credit card data collected from banks for purposes other than the performance of the work under the government contracts. The settlement announced today resolves allegations that, from 2010 through 2020, Argus improperly accessed, used and retained anonymized credit card data that it received under the contracts. The United States alleged that Argus used this anonymized data to create synthetic (proxy) data that it incorporated into the products and services it sold to some commercial customers in place of actual data from certain banks. The United States further alleged that Argus failed to disclose its improper access, use and retention of credit card data to the United States and the extent to which it relied on synthetic data to its commercial clients. The synthetic data in question did not include personally identifiable information. “Companies that do business with the federal government are expected to abide by the terms of their agreements, including any restrictions on the use or disclosure of government supplied data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not permit contractors to profit from the misuse of such data and to put the data at risk.” “Those who collect sensitive information for federal regulators should never disregard their contractual obligations to appropriately use and protect that information,” said First Assistant U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We will hold companies accountable when they breach their agreements with regulators and misuse sensitive data for their own commercial gain.” “The American public expects integrity in the processes by which its government provides services and contractors who seek unfair advantage undermine this integrity,” said Acting Inspector General Rich Delmar of the Department of Treasury’s Office of Inspector General (OIG). “Treasury OIG is committed to conducting investigations, audits, and other work to detect and prevent these violations of the public trust.” “Companies that breach their agreements to properly protect and use sensitive financial data must be held accountable,” said Special Agent in Charge John T. Perez of Headquarters Operations for the Office of Inspector General for the FRB and the CFPB. “I commend our agents and their federal law enforcement partners for their hard work, which ultimately led to today’s announcement.” The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Eastern District of Virginia; the Department of Treasury OIG; and the Office of the Inspector General for the FRB and the CFPB. Senior Special Agent Jacob Heminger from the Department of the Treasury OIG and Special Agent Will Burmeister from the Office of the Inspector General for the FRB and the CFPB investigated the case. Senior Trial Counsels David W. Tyler and Don Williamson from the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Tanya Kapoor for the Eastern District of Virginia handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: New Orleans Man Sentenced Fifty-Nine Month Imprisonment After Pleading Guilty to Federal Firearms Offense

body_text: NEW ORLEANS, LOUISIANA- MICHAEL WILLIAMS , age 28, a resident of New Orleans, was sentenced on March 5, 2024 by U.S. District Judge Darrel J. Papillion to 59 months imprisonment to be followed by 3 years of supervised release, along with a $100 mandatory special assessment fee, after previously pleading guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). According to court documents, on January 10, 2023, WILLIAMS and three other individuals were standing near the intersection of North Broad and Hope streets at the edge of the Seventh Ward. When NOPD detectives drove by in an unmarked vehicle, the individuals backed up and clutched at their waistbands, indicating to the detectives that they possessed concealed firearms. Marked NOPD units were called to the area and, upon seeing the police vehicles, WILLIAMS fled and during the pursuit by an NOPD officer. WILLIAMS removed a Glock Model 43 handgun, that was concealed on his person, and discarded it on the ground. 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. This case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.


title: Buxton Man Sentenced for Crop Insurance Violation, Ending Series of Four Cases Involving Potato Insurance Claims

component: USAO - North Dakota

body_text: Fargo – United States Attorney Mac Schneider announced that Chief Judge Peter D. Welte, United States District Court, District of North Dakota, sentenced Darren Wade Tronson, age 59, of Buxton, North Dakota, to one year of probation for concealing a material fact in a matter within the jurisdiction of the Government of the United States. Imposition of the sentence against Tronson resolves the final pending case related to him and his potato farming operation, which included three civil cases and one criminal case. As part of the resolution of the four cases, Tronson will forgo a $272,365 crop insurance indemnity payment for 2019, pay $10,000 restitution to the United States in connection with the settlement of his 2017 and 2018 potato claims, be barred from participation in all federal programs for ten years, and serve one year of supervised probation. Investigation revealed that in 2017 through 2019, Tronson planted potatoes in Grand Forks and Traill Counties, North Dakota, and purchased yield-based multi-peril crop insurance policies for potatoes through his insurer. Tronson claimed significant losses in all three years due to alleged adverse weather events. In February 2019, after anomalous losses in 2017 and 2018, Tronson’s crop insurance provider met with him and stressed the need for Tronson to use agricultural experts and a soil fertility plan as part of general good farming practices to qualify for the payment for any losses under a federal crop insurance policy. Tronson did not follow through with the recommendations and instead tried to conceal the actual cause of his potato crop loss in 2019, resulting in the criminal charge. Tronson suffered a loss for his 2019 potato crop, and Tronson made a claim under his crop insurance policy based on precipitation alone. However, Tronson willfully failed to notify his insurer that he did not follow the recommendations related to soil fertility for the 2019 crop year. Tronson’s insurer justifiably denied more than half of Tronson’s crop insurance claim in 2019 for failing to follow the recommended good farming practices. The first civil case was also based on the 2019 crop year. In addition to criminally concealing the cause of his loss, Tronson sued the United States on behalf of his company, DL Farms, LLC, seeking to recover the 2019 indemnities that were withheld from him. In denying his claims and granting summary judgment in favor of the United States, Judge Welte wrote that RMA “analyzed the relevant factors and came to a rational decision, given DL Farms’ failure to conduct a soil test prior to the 2019 planting season and the evidence showing the fertilization practice was deficient in both in phosphorous and potassium.” Based on the Court’s decision, Tronson was required to forgo an additional $272,365 crop insurance indemnity payment for 2019. The second civil case was based on Tronson’s failure to follow good farming practices in 2017 and 2018. In 2017 and 2018, Tronson’s insurer paid all of his potato claims, despite evidence the weather was not the actual cause of his losses. The United States alleged in a civil complaint that Tronson lied about the actual cause of his losses in those years, which was failure to use good farming practices as required by the applicable polices. After filing its Complaint, the United States reached an agreement with Tronson and his company to settle the 2017 and 2018 claims. The United States dismissed its lawsuit against Tronson in exchange for payment of $10,000 and his voluntary agreement to be excluded from all federal programs, including crop insurance and other farm programs, for ten years. “Crop insurance fraud is a serious crime that hurts taxpayers and honest producers,” Schneider said. “This result is a reminder that fraud will be exposed, investigated, and dealt with criminally and civilly. The USDA Office of Inspector General and our office’s career prosecutors and civil litigators deserve credit for ensuring that justice was done.” “The United States Department of Agriculture, Risk Management Agency (RMA), through its private partnerships serve a vital role in serving the needs of farmers following a disaster. Fraudulent activity and failure to follow good farming practices undermines this program and misdirects taxpayer funds from the purposes they were intended. It is the mission of the USDA-OIG to investigate allegations of waste, fraud, and abuse in USDA programs,” said Acting Special Agent in Charge Robert J. Springer of USDA-OIG. RMA Administrator Marcia Bunger said, “We will continue to uphold the public’s trust in the crop insurance program by working closely with the Office of Inspector General, the Department of Justice and other government agencies to ensure the successful investigation and prosecution of cases involving crop insurance fraud, waste, and abuse. The court’s determination in this case should serve as a strong deterrent to others who may contemplate similar actions.” While the criminal charges were pending, Tronson received a Notice of Suspension From Participation in United States Government Programs. The fourth case—his challenge to the suspension—was dismissed shortly after it was filed. His ten-year program suspension is effective January 1, 2023, which was the first year of his interim suspension. This matter was investigated by the USDA Office of Inspector General and the Risk Management Agency. The criminal case was prosecuted by Assistant U.S. Attorney Matthew Greenley, District of North Dakota. Assistant U.S. Attorneys Michael D. Schoepf and Melissa Helen Burkland handled the civil cases. # # #


title: Federal Jury Convicts Felon on Drug, Firearms Charges

component: USAO - Colorado

body_text: DENVER – The United States Attorney’s Office for the District of Colorado announces that Timothy Martinez, age 46, of Pueblo, was found guilty on one count of possession of methamphetamine with an intent to distribute, one count of possession of para-flurofentanyl with an intent to distribute, one count of carrying a firearm during and in relation to a drug trafficking crime, and one count of being a felon in possession of a firearm. A federal jury in Denver returned a guilty verdict against Martinez on Thursday, March 7, 2024. According to the facts established at trial, Martinez was well known to the Pueblo Police Department. When he was arrested in July of 2023 on an unrelated active warrant, officers found a loaded semiautomatic handgun, fentanyl pills, methamphetamine, other drugs, and various types of ammunition. Martinez has prior felony convictions for aggravated battery, sex assault, failure to register as a sex offender, trespassing, domestic violence, controlled substance possession, and possession of a controlled substance with an intent to distribute. “The Office of the United States Attorney in Colorado continues to work toward our goal of making our state safer by getting criminals like this off the streets,” said Cole Finegan, United States Attorney for the District of Colorado. “Once again, this type of conviction is made possible by effective, local, state, and federal partnerships.” “The FBI is committed to working with local law enforcement to stamp out violent crime and protect our communities. Federal task forces augment local agencies with specialized investigative resources and open pathways for federal prosecution. That is what happened in this case worked by our Organized Crime Drug Enforcement Task Force with Pueblo Police” said FBI Denver Special Agent in Charge Mark Michalek. “This conviction should send a clear message that we will continue to pursue the most violent and persistent offenders and hold them accountable to the fullest extent of the law.” United States District Court Judge Daniel D. Domenico presided over the jury trial. Martinez will be sentenced later. The FBI conducted the investigation. Assistant United States Attorneys Aly Mance and Dustin Andre-Vandenberg handled the prosecution. 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. Case Number: 23-CR-00347


title: St. Charles Parish Man Pleads Guilty to Fentanyl Distribution

component: Drug Enforcement Administration (DEA)

body_text: NEW ORLEANS, LOUISIANA – AMARYD DOWNING , age 37, of Hahnville, La. pled guilty on March 5, 2024 to three (3) counts of distribution of a quantity of a mixture and substance containing a detectable amount of fentanyl,in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), announced U.S. Attorney Duane A. Evans. According to court documents, on May 8, May 11, and May 22, 2023, St. Charles Parish detectives conducted an investigation during which they made controlled purchases of gram quantities of drugs from DOWNING in the Hahnville area. The drugs from each purchase tested positive for fentanyl and heroin. After making the controlled purchases, detectives arrested DOWNING . If convicted, DOWNING faces a maximum term of twenty (20) years imprisonment, up to a $1,000,000.00 fine, at least three (3) years of supervised release and a mandatory $100.00 special assessment fee. This case was investigated by the federal Drug Enforcement Agency and the St. Charles Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.


title: Indictment Charges Danbury Resident with Fentanyl Trafficking Offense

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JAIRO ABREU, 31, of Danbury, has been charged by indictment with a fentanyl trafficking offense. As alleged in court documents and statements made in court, an investigation by the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department revealed that Abreu was trafficking fentanyl into Hartford. Abreu was arrested on state charges on October 17, 2023. Following his arrest, a search of his Danbury residence revealed approximately three kilograms of fentanyl and an additional approximately 2,000 wax sleeves containing fentanyl. Abreu was arrested on a federal criminal complaint on February 23, 2024. On March 6, a grand jury in New Haven returned an indictment charging him with possession with intent to distribute 40 grams or more of fentanyl. Abreu appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford, entered a plea of not guilty to the charge, and was released on a $100,000 bond. If convicted of the charge, Abreu faces a mandatory minimum term of imprisonment of five years and a maximum term of 40 years. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Manchester Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Sean P. Mahard through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Serial Bank Robber Sentenced to More than 7 Years in Prison

component: USAO - Arizona

body_text: TUCSON, Ariz. – James Valentine Siehien, 53, of Tucson, was sentenced on February 27, 2024, by United States District Judge Raner C. Collins to 87 months in prison, followed by five years of supervised release. Siehien pleaded guilty to one count of Bank Robbery and two counts of Armed Bank Robbery on March 16, 2023, for a series of bank robberies he committed in Tucson. Siehien admitted that, on October 21, 2021, he robbed approximately $4,000 from Chase Bank. He also admitted that, on October 26, 2021, he robbed approximately $2,740 from PNC Bank, with what was later determined to be a fake explosive device. Siehien further admitted that, on November 5, 2021, while possessing an axe, he robbed approximately $2,200 from First Convenience Bank. The Federal Bureau of Investigation and the Tucson Police Department, as part of the Southern Arizona Violent Crime and Gang Task Force, conducted the investigation in this case. Assistant U.S. Attorney, Adam D. Rossi, District of Arizona, Tucson, handled the prosecution. CASE NUMBER: CR-21-03071-TUC-RCC RELEASE NUMBER: 2024-029_Siehien # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Member of Violent Gang Pleads Guilty To Racketeering, Firearm, and Drug Trafficking Offenses

component: USAO - Massachusetts

body_text: BOSTON – A Boston area man pleaded guilty yesterday to his role in Cameron Street, a violent Boston gang. Keiarri Dyette, a/k/a “Kemo,” 26, pleaded guilty to conspiracy to participate in a racketeering enterprise, dealing in firearms without a license and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for June 13, 2024. Dyette was identified as a member Cameron Street, a violent gang based largely in the Dorchester section of Boston. According to court documents, Cameron Street members use violence and threats of violence to preserve, protect, and expand its territory, promote a climate of fear, and enhance its reputation. They allegedly possess, carry, and use firearms to murder and assault their rivals. Like many members of Cameron Street, Dyette had tattoos and or wore clothing featuring the letter “C” or “KC” (for “Killa Cam”) that signified his membership in the gang: As part of his role in the Cameron Street enterprise, Dyette used a pistol to assault a rival NOB/Wendover gang member in a parking lot on Hancock Street in Boston. Additionally, Dyette sold firearms and worked with other Cameron Street members to distribute cocaine and marijuana. The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute and to possess with intent to distribute cocaine provides for a sentence of up to 40 years in prison, at least four years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case. This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: New Orleans Man Pleads Guilty  to Violating Federal Gun Control  and Controlled Substances Acts

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

body_text: NEW ORLEANS, LOUISIANA – HAROLD DECLOUET (“DECLOUET”) , age 22, a resident of New Orleans, pleaded guilty on March 6, 2024 before U.S. District Judge Jane T. Milazzo to four counts of federal drug and weapons violations. DECLOUET pleaded guilty to two counts of distribution of cocaine base, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); one count of possession with intent to distribute cocaine base, marijuana, and tramadol, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), 841(b)(1)(D), and 841(b)(2); and one count of possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i). According to court documents, DECLOUET made two sales of cocaine base to a confidential informant for the Bureau of Alcohol, Tobacco, Firearms, and Explosives in February of 2022. A few months later, in May of 2022, DECLOUET was arrested with cocaine base, marijuana, tramadol pills, over $1,000 in cash, and a Glock Model 19 handgun loaded with 31 rounds of ammunition. With respect to his convictions for distribution of cocaine and possession with intent to distribute controlled substances, DECLOUET faces a maximum sentence of 20 years in prison, a fine of up to $1,000,000, and a minimum of three years of supervised release on each count. With respect to his conviction for possessing a firearm in furtherance of a drug trafficking crime, DECLOUET faces a mandatory minimum sentence of five years and up to life in prison, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. Each count also carries a mandatory $100 special assessment fee. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Jefferson Parish Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.


title: Mescalero Woman Pleads Guilty to Domestic Abuse

component: USAO - New Mexico

body_text: ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Prestina Lee Kazhe pleaded guilty in federal court to assault of an intimate partner resulting in substantial bodily injury. Kazhe, 44, of Mecalero, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending sentencing which has not been scheduled. According to publicly available court records, on Sept. 24, 2023, Kazhe assaulted John Doe by repeatedly hitting him over the head with a Bud Light bottle and a metal pot and bit him on the arm. Following the assault, John Doe was transported to a nearby medical center where he was treated for three large lacerations which required multiple staples to close the wounds. At sentencing, Kazhe faces up to 5 years in prison followed by 3 years of supervised release. The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Joni Autrey Stahl is prosecuting the case. # # #


title: Mexican Citizen Sentenced to Over 27 Years in Federal Prison in a South Dakota Cocaine Conspiracy

component: USAO - South Dakota

body_text: SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sinaloa, Mexico man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 11, 2024. Melecio Rodriguez Medina, 39, was sentenced to 27 years and three months in federal prison, followed by five years of supervised released. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Rodriguez Medina, and his co-conspirator, Mario Castro Covarrubias, were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in February 2022. Rodriguez Medina pleaded guilty on November 6, 2023 and Mario Castro Covarrubias pleaded guilty on January 3, 2024. Rodriguez Medina and Castro Covarrubias were based in Mexico and were part of an international organization that arranged for the transportation of large amounts of narcotics to Sioux Falls, South Dakota, from Mexico. They coordinated with two couriers to get approximately 25 kilograms of cocaine delivered to Sioux Falls in October of 2021. On October 18, 2021, law enforcement seized the cocaine that they had shipped to South Dakota. In December of 2021, the two again coordinated to ship approximately 42 kilograms of cocaine to Sioux Falls, which was also seized. In addition to cocaine, Rodriguez Medina was responsible for organizing a shipment of 1 kilogram of fentanyl pills to Sioux Falls. Investigators also determined that Rodriguez Medina made arrangements for a co-conspirator in South Dakota to pick up multi-pound shipments of methamphetamine in California and then take them back to South Dakota for distribution. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case. Rodriguez Medina was immediately remanded to the custody of the U.S. Marshals Service.


title: Philadelphia Man Sentenced to More Than 10 Years in Prison in Connection With Two Violent Carjackings

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dashawn Pringle, 27, of Philadelphia, Pennsylvania, was sentenced to 125 months’ imprisonment, three years of supervised release, a $300 special assessment, and $1,250 in restitution by United States District Court Senior Judge Timothy J. Savage for his role in two carjackings in the city. On the afternoon of April 23, 2022, Victim #1 was operating his 2021 Honda Pilot near the 5100 block of Race Street. The victim temporarily pulled over to the side of the road, and Pringle and another male suddenly got in. When Victim #1 attempted to run from the scene, the two caught up to him, punched and kicked him, then stole his wallet, car keys, and vehicle. In the early morning hours of May 1, 2022, Victim #2, a ride-share driver, had just made a drop-off on the 300 block of South Camac Street when the previously carjacked Honda Pilot pulled behind his vehicle and hit the back bumper. Seeing no damage, Victim #2 waved to the driver of the Pilot, later identified as Pringle, and departed the area. After the Honda Pilot followed him and the driver appeared to flag him down, Victim #2 pulled over on the 1200 block of Lombard Street and walked over to the driver’s side door of the Pilot, where Pringle promptly pointed a gun at his face and told him not to move or he’d be shot. A front-seat passenger took Victim #2’s keys and drove off in his 2018 Toyota Highlander. On November 28, 2023, Pringle pleaded guilty to two counts of carjacking and possession of ammunition by a felon. “Carjackings are offenses that really undermine public confidence and quality of life,” said U.S. Attorney Romero. “People going about their daily business shouldn’t have to fear armed criminals like Dashawn Pringle preying on them out of the blue, physically assaulting them, sticking guns in their face, and taking off in their car. We and our partners on the Carjacking Task Force are working every day to identify, prosecute, and take criminals like this off Philadelphia’s streets, with the public’s safety our number one priority.” “Sentences like this are a product of the diligent work done by the FBI Philadelphia Violent Crimes Task force, who leverages the resources of our local law enforcement partners to remove violent offenders from our streets,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This serves as a reminder that brazen acts of violence will be not tolerated in this city and reinforces our commitment to fostering a safe community for the citizens of Philadelphia.” This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the FBI Philadelphia Violent Crimes Task Force and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Martin E. Howley, Jr.


title: U.S. Attorney’s office collects approximately $11-million dollars in civil and criminal actions in fiscal year 2023

component: USAO - New York, Western

body_text: BUFFALO, NY - U.S. Attorney Trini E. Ross announced today that the Western District of New York collected $10,990,785.85 in criminal, civil and forfeiture actions in Fiscal Year 2023. Of this amount, $3,245,581.30 was collected in criminal actions, $4,374,170.95 was collected in civil actions, and $3,036,996 was collected in forfeiture actions. As a result, over $3,224,551.24 was given to victims of crime in the past year, while $1,712,236.00 was provided as aid to state and local law enforcement agency partners who worked with the United States Attorney’s Office on criminal cases. In making the announcement, U.S. Attorney Ross specifically credited the work done by the Asset Recovery Division, under the leadership of Chief Kevin D. Robinson and Deputy Chief Grace Carducci. “My Office continues to focus on crime prevention, protecting the rights of all victims and collecting restitution and monetary penalties,” stated U.S. Attorney Ross. “We live in a time where victimization crimes against vulnerable people, including children and the elderly, are on the rise. With advancements in technology and the use of social media, my office has devoted considerable time and resources towards adjusting our efforts to stay ahead of the perpetrators. Our goal is to make sure that those committing crimes do not become unjustly enriched from their illegal actions and to make the victims whole.” The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. In addition to recovering funds, 27 dangerous firearms and 253 rounds of ammunition were forfeited in FY 2023 as instrumentalities of criminal conduct in drug and violent gang cases. Thirty-one computers and electronic media devices—most related to child exploitation cases—were also forfeited. The following cases are examples of successful forfeiture and affirmative civil enforcement cases concluded this past year in the Western District of New York: • US v. 399 Whispering Pines Circle, Greece, NY - The USAO filed a verified civil forfeiture complaint against 399 Whispering Pines Circle, in Webster, as property of value traceable to proceeds furnished in exchange for a controlled substance. The owner is alleged to have conspired with others known and unknown, to possess with intent to distribute and to distribute Schedule II controlled substances, specifically cocaine and fentanyl, in the greater Rochester area. As a result of a settlement agreement, the District Court ordered the forfeiture of the defendant real property to the Government. The net equity value of the real property is valued at approximately $119,000. • US v. Darnell Manning - The defendant conspired with others known and unknown, to possess with intent to distribute and to distribute Schedule II controlled substances, specifically cocaine and fentanyl, in the greater Rochester area. Manning pleaded guilty and agreed to forfeit over $447,824.00 in seized assets, including United States currency, jewelry, a vehicle, two firearms and rounds of seized ammunition. • United States ex rel. DeGroat v. Beyond Reps, Inc. et al. - Beyond Reps, Inc. d/b/a IronRod Health and Cardiac Monitoring Services has agreed to pay $673,200.92 to resolve allegations arising under the False Claims Act that they submitted false claims to federal health care programs relating to remote cardiac monitoring services. IronRod is a healthcare solutions company with headquarters in Phoenix, Arizona. IronRod provides remote cardiac monitoring services, among other services. The Government alleged that between January 1, 2018 and April 30, 2021, IronRod utilized technicians who lacked required credentials to conduct remote cardiac monitoring readings. The government also alleged that between June 1, 2018 and August 20, 2018, IronRod misrepresented that it performed services in New York State in order to obtain higher reimbursements from Medicare for remote cardiac monitoring services. # # # #


title: Jury Finds Russian-Swedish Operator of ‘Bitcoin Fog’ Guilty of Running the Darknet Cryptocurrency Mixer

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – Roman Sterlingov, a citizen of Russia and Sweden, was found guilty today of operating among the longest-running and most prolific bitcoin money laundering services on the darknet. The jury verdict, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves, Deputy Attorney General Lisa Monaco, Chief Jim Lee of the Internal Revenue Service (IRS)-Criminal Investigation, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office. Sterlingov, 35, was found guilty of money laundering conspiracy, sting money laundering, operating an unlicensed money transmitting business, and violations of the D.C. Money Transmitters Act. The jury also granted forfeiture to the government of several specific assets that law enforcement had previously seized, including over about 1,354 Bitcoin held in a Bitcoin Fog wallet, as well as $349,625 and various cryptocurrencies (including Bitcoin, Ethereum, Monero, and Stellar) held in seized Kraken cryptocurrency exchange accounts. U.S. District Court Judge Randolph D. Moss scheduled sentencing for July 15, 2024, and will also consider a further forfeiture money judgment. Money laundering conspiracy and money laundering sting each carry a statutory maximum sentence of 20 years in prison; unlicensed money services business and DC Code money transmission without a license each carry a maximum sentence of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. According to the government’s evidence, Sterlingov operated Bitcoin Fog from October 2011 to April 2021. Bitcoin Fog was a cryptocurrency “mixer,” or “tumbler,” and had gained notoriety as a money laundering service for criminals seeking to hide their illicit proceeds from law enforcement. Over the course of its decade-long operation, stopped only when Sterlingov was arrested and detained, Bitcoin Fog moved well over 1.2 million bitcoin (BTC) – valued at approximately nearly $400 million at the time of the transactions. The bulk of that cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer fraud and abuse activities, and identity theft. His service also served purveyors of child sexual abuse material (CSAM) through the notorious site Welcome to Video. “Darknet criminals should know by now that operations like Bitcoin Fog cannot provide the anonymity for cryptocurrency transactions that they claim they can,” said U.S. Attorney Matthew M. Graves of the District of Columbia. “This conviction demonstrates that the United States can and will combat the use of technology to carry out crimes in cyberspace.” “Roman Sterlingov thought he could use the shadows of the internet to launder hundreds of millions of dollars in bitcoin without getting caught. But he was wrong,” said Deputy Attorney General Monaco. “Our team of agents, analysts, and prosecutors were relentless in their pursuit of justice, painstakingly tracing bitcoin through the blockchain to hold Sterlingov and his Bitcoin Fog enterprise to account. Today, a jury returned guilty verdicts on all counts — showing that no matter where you operate, if your cryptocurrency service reaches the United States, you must abide by U.S. law.” “Evidence presented at trial clearly showed that the defendant laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog in an attempt to conceal the origin of those funds,” said IRS Criminal Investigation Chief Jim Lee. “IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed.” “For a decade, Sterlingov managed a cryptocurrency mixer that criminals used to launder millions of dollars linked to cybercrimes, narcotics sales, and child exploitation,” said Assistant Director in Charge David Sundberg. “His conviction demonstrates the FBI's commitment to working with our partners to disrupt the cybercriminal ecosystem by targeting its most technical and proficient enablers.” “Roman Sterlingov operated Bitcoin Fog, a cryptocurrency ‘mixing’ service that allowed criminals to launder hundreds of millions of dollars in illicit funds from darknet marketplaces. The defendant and his customers believed they could use Bitcoin Fog to conceal these illicit transactions,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As the jury’s guilty verdict shows, that belief was mistaken. The Criminal Division is committed to unmasking and prosecuting those who use technology to hide their crimes, no matter how sophisticated the scheme may be.” At launch, Sterlingov publicized Bitcoin Fog as a tool for anonymizing bitcoin transactions and evading law enforcement. His site charged customers a fee for the service. Historically, the largest users of Bitcoin Fog were darknet markets such as Agora, Silk Road, Silk Road 2.0, Evolution, and AlphaBay. As the jury found, Sterlingov’s mixing and tumbling activity was an illegal money transmitting and money laundering service under federal law. While the identity of a BTC address owner is generally anonymous (unless the owner opts to make the information publicly available), the evidence at trial demonstrated that law enforcement can identify the owner of a particular bitcoin address by analyzing the blockchain. The analysis can also reveal additional addresses controlled by the same individual or entity. IRS-CI’s analysis determined Bitcoin Fog received approximately 486,861.69 BTC, valued at about $54,897,316 at the time of the transactions, directly from darknet markets. Bitcoin Fog sent approximately 164,931.13 BTC (about $23,690,956 at the time of the transactions) directly to darknet markets. In sum, the anonymizer sent or received more than $78 million in transactions involving known darknet markets, counting only direct transactions. Based on Bitcoin Fog’s transaction activity over time, Sterlingov made millions in commissions from Bitcoin Fog transactions. Investigators obtained records of Sterlingov’s true-name accounts at several cryptocurrency exchanges. Analysis of those accounts revealed the vast majority of cryptocurrency deposited into Sterlingov’s accounts was originally sourced and traced back to bitcoin clusters associated with Bitcoin Fog. Under U.S. law, it is a crime to conspire to commit money laundering, that is, to conduct financial transactions with proceeds from unlawful activity designed to conceal the nature, location, source, ownership, or control of such proceeds. It is also a crime to conduct or attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, with the intent to conceal the nature, location, source, ownership, or control of such property. It is also a crime to operate a money transmitting businesses without obtaining an appropriate money transmitting license in the state in which the service operates, or with FinCEN. The D.C. also criminalizes similar unlicensed activity. Sterlingov was arrested April 27, 2021, at Los Angeles International Airport and has remained detained since that time. The IRS-CI District of Columbia Cyber Crime Unit and FBI Washington Field Office investigated the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit provided invaluable assistance. Additional assistance was provided by Europol; the Swedish Economic Crime Authority (Ekobrottsmyndigheten), the Swedish Prosecution Authority, and the Swedish Police; and the General Inspectorate of Romanian Police, Directorate for Combatting Organized Crime, and the Directorate for Investigating Organized Crime and Terrorism. Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown for the District of Columbia are prosecuting the case. Pelker and Brown are members of CCIPS’ National Cryptocurrency Enforcement Team (NCET). Paralegal Specialists Angela De Falco and Divya Ramjee provided valuable assistance.