title: Sedalia Business Owner Pleads Guilty to Failing to Pay Employment Taxes

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Sedalia, Mo., business owner pleaded guilty in federal court today to failing to pay nearly $136,000 in employment taxes he withheld from his employee’s paychecks. Floyd H. Kronk III, 48, waived his right to a grand jury and pleaded guilty before U.S. Chief Magistrate Judge Willie J. Epps, Jr., to a federal information that charges him with failure to pay employment tax. Kronk started a construction company, Transition Construction, in 2010. About 95 percent of Transition’s revenues came from Furnell Companies, a Sedalia-based firm that owns and operates a hotel and various assisted living facilities throughout Missouri. Transition did most of the construction and renovating work relative to Furnell’s properties in Missouri. Kronk retained anywhere from six to 15 employees to carry out that construction work. He withheld their designated federal income tax withholdings from their paychecks, as well as Social Security and Medicare taxes, which he was then supposed to forward to the IRS each month. Kronk admitted today that he did not file timely federal employment tax returns, nor did he deposit any part of the trust fund taxes he withheld from his employees. Instead, he retained those withholdings for his personal benefit. Kronk withheld $135,785 from his employees’ paychecks from 2014 through 2017, which he kept for his personal benefit. Kronk also admitted that he was non-compliant with his individual federal income tax filings and payment of those liabilities. According to today’s plea agreement, his returns for 2014 through 2017 were all filed delinquently, and with no accompanying payment. The total tax loss is $135,785 from 2014 to 2017, and $69,280 for relevant conduct for 2011 to 2013, for a total amount of $205,066. Under federal statutes, Kronk is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by IRS-Criminal Investigation.


title: Former Assistant Superintendent and Former IT Director of Patterson Joint Unified School District Plead Guilty to $1 Million Embezzlement Scheme

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Jeffrey Menge, 43, of Copperopolis, and Eric Drabert, 44, of Modesto, pleaded guilty today to theft concerning programs receiving federal funds, U.S. Attorney Phillip A. Talbert announced. According to court documents, from 2018 to 2022, Menge served as the Assistant Superintendent and Chief Business Officer of Patterson Joint Unified School District. In approximately 2020, Menge hired Drabert to serve as IT Director for the school district. Menge and Drabert conducted schemes to embezzle money from the school district. Among other things, they used CenCal Tech LLC, a Nevada company that Menge controlled, to carry out the scheme. Menge was limited in his ability to conduct interested party transactions with the school district, so he created a fictitious person, “Frank Barnes,” to serve as an executive for CenCal Tech. Menge and Drabert then used CenCal Tech to conduct more than $1.2 million in fraudulent transactions with the school district. The transactions involved double billing, over billing, and billing for items not delivered by CenCal Tech to the school district. According to court documents, Menge and Drabert stole in additional ways as well. For example, they purchased high-end graphics cards and used those cards, together with other school district property and electricity, to operate a cryptocurrency “mining” farm at the school district. They then transferred the mined cryptocurrency to wallets under their own personal control. Menge also misused vehicles owned by the school district, including buying a Chevy truck at below-market value and selling it for a profit, and using a Ford Transit van as his own personal vehicle. In total, Menge embezzled between $1 million and $1.5 million and Drabert stole between $250,000 and $300,000 during the scheme. Menge used stolen funds to remodel his home, to purchase luxury cars, including a Ferrari sports car, and for other personal uses. Drabert used stolen funds to remodel his vacation cabin, among other uses. This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Stanislaus County District Attorney Bureau of Investigation and the Stanislaus County Sheriff’s Office. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case. Menge and Drabert are scheduled to be sentenced by U.S. District Judge Troy L. Nunley on May 30, 2024. Menge and Drabert each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. menge_reduced_filed.pdf drabert_reduced_filed.pdf


title: Jury Convicts Tampa Woman Of Defrauding Government Of Federal Benefits

component: USAO - Florida, Middle

body_text: Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Shirin Marshall (55, Tampa) guilty of four counts of mail fraud. Marshall faces a maximum penalty of 20 years in federal prison on each count. Her sentencing hearing is scheduled for April 30, 2024. A grand jury had returned an indictment against Marshall on February 24, 2022. According to the testimony and evidence presented at trial, in August 2000, Marshall claimed a back and shoulder injury while working as a U.S. Postal Service letter carrier. In July 2001, she filed a subsequent claim related to workplace stress. Marshall later began receiving disability benefits and wage compensation from the Department of Labor’s Office of Workers’ Compensation Program (“DOL-OWCP”) mailed to her in monthly checks. An investigation by the U.S. Postal Service - Office of Inspector General revealed that Marshall concealed her physical capabilities, emotional state, and employment activities from the DOL-OWCP to continue receiving federal workers’ compensation benefits. Marshall also misrepresented her true medical condition to her treating physicians and made false representations on forms she annually submitted to DOL-OWCP. As result of Marshall’s fraudulent scheme, the DOL-OWCP provided her at least $500,000 in wage compensation she was not entitled to receive. This case was investigated by the U.S. Postal Service - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Greg Pizzo.


title: Malden Man Sentenced to Decade in Prison for Distributing Methamphetamine

component: USAO - Massachusetts

body_text: BOSTON – A Malden man was sentenced today to 10 years in prison for distributing methamphetamine to an undercover law enforcement officer. David Desousa, 33, was sentenced by U.S. District Court Judge Richard G. Stearns to 10 years in prison to be followed by five years of supervised release. In September 2022, Desousa pleaded guilty to one count of distributing 50 grams or more of methamphetamine, one count of distributing five grams or more of methamphetamine, one count of distributing a mixture or substance containing methamphetamine and three counts of possessing 50 grams or more of methamphetamine with intent to distribute. In February 2020, an investigation began into DeSousa’s methamphetamine distribution activities. On three separate occasions in February, March and July 2020, Desousa met with and sold various quantities of methamphetamine to an undercover agent. Desousa was arrested on Aug. 6, 2020 in Medford while he was travelling to deliver two ounces of methamphetamine to the undercover agent. More than 55 grams of 99% pure methamphetamine and 10.814 grams of cocaine base were seized from Desousa’s vehicle. During a subsequent search of Desousa’s residence, more than 75 grams of methamphetamine, a loaded Remington .380 caliber pistol and $5,000 in cash was seized. An additional 83 grams of 99% pure methamphetamine and $90,000 in cash were also seized from Desousa’s storage unit. Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Arlington Police Chief Juliann Flaherty; Medford Police Chief Jack Buckley; and Malden Police Chief Glenn Cronin made the announcement. Assistant U.S. Attorneys Philip C. Cheng and James E. Arnold of the Narcotics & Money Laundering Unit prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Insurance Agent Sentenced To 15 Years In Federal Prison For Defrauding Elderly Investors And Tax Evasion

body_text: Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Phillip Roy Wasserman (67, Sarasota) to 15 years in federal prison for conspiracy to commit wire fraud and mail fraud, substantive counts of wire fraud and mail fraud, and evasion of payment of income taxes. As part of his sentence, the court also entered an order of forfeiture in the amount of $6,318,299.75, the proceeds of the criminal conduct. A federal jury had found Wasserman guilty of the fraud charges on May 15, 2023. Wasserman pleaded guilty to tax evasion on October 23, 2023. According to court documents and evidence presented at trial, Wasserman, a former lawyer and licensed insurance agent, and his co-conspirator Kenneth Rossman, a Florida certified public accountant and licensed insurance agent, made false and fraudulent misrepresentations and concealed material information in order to convince elderly victim-investors to put their money into Wasserman’s new insurance venture, “FastLife.” Some victim-investors were persuaded to liquidate traditional investments, such as annuities, and/or to borrow funds against existing life insurance policies to generate cash to invest in the venture. These victim-investors were not told about surrender fees and other costs associated with said liquidations, and Rossman prepared income tax returns for victim-investors in a manner designed to conceal negative personal tax consequences that resulted from liquidations. Wasserman paid Rossman a percentage of the victim-investors’ money as compensation for his role in the conspiracy. Wasserman also used victim-investors’ money to make Ponzi-style payments to earlier victim-investors in the FastLife venture, as well as to victim-investors in his earlier hedge fund and real estate fund ventures. Wasserman spent a significant amount of the victim-investors’ money to finance a lavish lifestyle that included a luxury personal residence, a beach house on Casey Key, professional hockey season and playoff tickets, concerts and other shows, vehicles, jet skis, jewelry, including a diamond ring, personal celebrity entertainment, gambling, retail shopping, home improvements, personal insurance, and a host of other expenses for his personal benefit and the benefit of family members. The evidence also established that Wasserman took numerous steps to evade payment of more than $900,000 in taxes, and to conceal a multitude of civil judgments and other debts pending against him at the time he solicited victim-investors to put their money into FastLife. In addition, Wasserman took steps to conceal FastLife’s mounting business debts to various business vendors and service providers, employees and independent contractors, and victim-investors. The evidence further showed that in response to the investigation, Wasserman created a second set of books and fabricated a compensation agreement in an effort to convince investigators that he had not made improper personal use of victim-investors’ funds. Moreover, he urged one witness to lie to investigators, attempted to dissuade several victim-investors from cooperating with law enforcement, and requested that one victim-investor make a baseless complaint against an investigator. In a further effort to thwart the investigation, Wasserman falsely and fraudulently represented that he had an audit from a highly-regarded financial services firm that would show that neither he nor FastLife had committed any wrongdoing. Evidence at trial showed that Wasserman had never engaged the firm to perform an audit and had never received any final work product from the firm. “With false promises of riches and security, Mr. Wasserman exploited the most vulnerable in our society. Investment schemes that target the elderly are especially heinous and will not be tolerated by the justice system. IRS Criminal Investigators will leave no stone unturned to protect elderly victims and bring some justice to those who might prey upon them,” said Special Agent in Charge Brian Payne of IRS-Criminal Investigation. “False allegations against our investigators, coverups of financial documents, or witness tampering will not deter us. Wasserman called himself the Annuity King but his actions and crimes have earned him another name: Convicted Felon.” This case was investigated by the Internal Revenue Service - Criminal Investigation and the Florida Office of Financial Regulation. It was prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Rachel K. Jones. The forfeiture is being handled by Assistant Suzanne Nebesky.


title: Fall River Police Officer Found Guilty of Assaulting Man in Custody

body_text: BOSTON – A Fall River Police Officer was convicted today following a four-day jury trial of assaulting a man in custody with a baton and failing to report the assault in subsequent reports. Nicholas M. Hoar, 37, was convicted of on one count of deprivation of rights under color of law and two counts of false reports. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 24, 2024. Hoar was arrested and charged in November 2022. “Police officers who abuse their power will continue to be held accountable by this office,” said Acting United States Attorney Joshua S. Levy. “This office has a huge amount of respect for the thousands of men and women in law enforcement who conduct their jobs with high integrity and put their lives at risk every day. The defendant’s conduct and lack of moral compass is an affront to all those members of law enforcement who serve with honor.” “What Fall River Police Officer Nicholas Hoar did – in using his position of authority to assault a man in his custody and then try to cover it up by filing false reports– is utterly contemptible,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “We in law enforcement are granted significant authority in order to effectively do our jobs, and when a police officer abuses those powers and deprives another human being of their civil rights, the FBI and our partners will ensure they are brought to justice for egregiously violating the public’s trust.” On Dec. 21, 2020, while on duty as an officer with the Fall River Police Department, Hoar struck an individual who had been arrested in the forehead with a baton, resulting in bodily injury to the arrestee. Additionally, on Dec. 21 and Dec. 22, 2020, Hoar submitted two reports which omitted any mention of the fact that he had struck the arrestee in the forehead with a baton. The charge of deprivation of rights under color of law resulting in bodily injury provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of false reports provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and John J. Reynolds III of the Criminal Division are prosecuting the case.


title: Rocklin Business Owners Plead Guilty to Conspiracy to Evade over $1 Million in Taxes

body_text: SACRAMENTO, Calif. — Daniel Stewart, 59, of Lincoln, and Luke Burroughs, 59, of Loomis, pleaded guilty today to conspiracy to defraud the United States, U.S. Attorney Phillip A. Talbert announced. According to court documents, Burroughs and Stewart are the co-owners of Western Baler and Conveyor (WBC), a Rocklin‑based business that sells and services industrial conveyor belt systems. During the period of the conspiracy, WBC grossed several million dollars annually. Beginning in 2016, Stewart and Burroughs attempted to decrease their personal and company tax burdens by disguising personal expenses as company expenses. For example, Stewart remodeled his home, installed horse stables, and built a swimming pool and paid for all of it through WBC checks made to look like company expenses. At the same time, Stewart and Burroughs padded WBC expenses to get off-the-books cash kickbacks. Stewart and Burroughs ultimately underpaid their personal and company taxes by a combined amount of over $1 million. In 2018 and 2019, a confidential informant (CI) working with law enforcement met with Stewart on multiple occasions, helping to reveal how the conspiracy worked. Over several meetings, the CI provided Stewart large amounts of cash in exchange for WBC checks for the same or similar amounts; Stewart and Burroughs would then divide the cash and keep it as income, while using the WBC checks to make it look like that money had instead been spent on company expenses to decrease their tax burden. In 2019 an undercover special agent (UC) joined the CI for similar meetings with Stewart and Burroughs. Stewart and Burroughs continued the cash-for-checks scheme despite being told that the cash was coming from interstate marijuana sales, including one transaction of over $150,000 that they falsely disguised as the purchase of a baler, complete with a fake invoice. The CI and UC ultimately exchanged hundreds of thousands of dollars in cash for WBC checks. For 2019 alone, Stewart and Burroughs were seeking to evade paying taxes on approximately $4 million. As part of the conspiracy, Stewart and Burroughs caused false WBC company tax returns to be filed with the IRS for tax years 2016–2019, as well as false personal tax returns for themselves for those same tax years. In total, Stewart and Burroughs underpaid their personal and company taxes by a combined amount of $1,099,327. This case is the product of an investigation by the IRS Criminal Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin Lee is prosecuting the case. Stewart and Burroughs are scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on May 9, 2024. Stewart and Burroughs each face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.


title: Former CIA Officer Joshua Adam Schulte Sentenced To 40 Years In Prison For Espionage And Child Pornography Crimes

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Matthew G. Olsen, the Assistant Attorney General for National Security; and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that JOSHUA ADAM SCHULTE was sentenced to 40 years in prison by U.S. District Judge Jesse M. Furman for crimes of espionage, computer hacking, contempt of Court, making false statements to the FBI, and child pornography. SCHULTE’s theft is the largest data breach in the history of the CIA, and his transmission of that stolen information to WikiLeaks is one of the largest unauthorized disclosures of classified information in the history of the U.S. Today’s sentencing followed SCHULTE’s convictions at trials that concluded on March 9, 2020, July 13, 2022, and September 13, 2023. U.S. Attorney Damian Williams said: “Joshua Schulte betrayed his country by committing some of the most brazen, heinous crimes of espionage in American history. He caused untold damage to our national security in his quest for revenge against the CIA for its response to Schulte’s security breaches while employed there. When the FBI caught him, Schulte doubled down and tried to cause even more harm to this nation by waging what he described as an ‘information war’ of publishing top secret information from behind bars. And all the while, Schulte collected thousands upon thousands of videos and images of children being subjected to sickening abuse for his own personal gratification. The outstanding investigative work of the FBI and the career prosecutors in this Office unmasked Schulte for the traitor and predator that he is and made sure that he will spend 40 years behind bars – right where he belongs.” Assistant Attorney General Matthew G. Olsen said: “Mr. Schulte severely harmed U.S. national security and directly risked the lives of CIA personnel, persisting in his efforts even after his arrest. As today’s sentence reaffirms, the Department of Justice is committed to investigating, prosecuting, and holding accountable those who would violate their constitutional oath and betray the trust of the American people they pledged to protect.” FBI Assistant Director in Charge James Smith said: “Today, Joshua Schulte was rightly punished not only for his betrayal of our country, but for his substantial possession of horrific child pornographic material. The severity of his actions is evident, and the sentence imposed reflects the magnitude of the disturbing and harmful threat posed by his criminal conduct. The FBI will not yield in our efforts to bring to justice anyone who endangers innocent children or threatens our national security.” According to court documents and evidence at trial: From 2012 to 2016, SCHULTE was employed as a software developer in the Center for Cyber Intelligence (“CCI”), which conducts offensive cyber operations: cyber espionage relating to terrorist organizations and foreign governments. SCHULTE and other CCI developers worked on tools that were used in, among other things, human-enabled operations: cyber operations that involved a person with access to the computer network being targeted by the cyber tool. In addition to being a developer, SCHULTE was also temporarily one of the administrators of one of the servers and suite of development programs used to build cyber tools. In March 2016, SCHULTE was moved within branches of CCI as a result of personnel disputes between SCHULTE and another developer. Following that transfer, in April 2016, SCHULTE abused his administrator powers to grant himself administrator privileges over a development project from which he had been removed as a result of the branch change. SCHULTE’s abuse of administrator privileges was detected, and CCI leadership directed that administrator privileges would immediately be transferred from developers, including SCHULTE, to another division. SCHULTE was also given a warning about self-granting administrator privileges that had previously been revoked. SCHULTE had, however, secretly opened an administrator session on one of the servers before his privileges were removed. On April 20, 2016, after other developers had left the CCI office, SCHULTE used his secret server administrator session to execute a series of cyber-maneuvers on the CIA network to restore his revoked privileges, break in to the backups, steal copies of the entire CCI tool development archives (the “Stolen CIA Files”), revert the network back to its prior state, and delete hundreds of log files in an attempt to cover his tracks. SCHULTE’s theft of the Stolen CIA Files is the largest data breach in CIA history. From his home computer, SCHULTE then transmitted the Stolen CIA Files to WikiLeaks, using anonymizing tools recommended by WikiLeaks to potential leakers, such as the Tails operating system and the Tor browser. On May 5, 2016, having transmitted the Stolen CIA Files to WikiLeaks, SCHULTE wiped and reformatted his home computer’s internal hard drives. On March 7, 2017, WikiLeaks began publishing classified data from the Stolen CIA Files. Between March and November 2017, there were a total of 26 disclosures of classified data from the Stolen CIA Files that WikiLeaks denominated as Vault 7 and Vault 8 (the “WikiLeaks Disclosures”). The WikiLeaks Disclosures were one of the largest unauthorized disclosures of classified information in the history of the U.S., and SCHULTE’s theft and disclosure immediately and profoundly damaged the CIA’s ability to collect foreign intelligence against America’s adversaries; placed CIA personnel, programs, and assets directly at risk; and cost the CIA hundreds of millions of dollars. The effect was described at trial by the former CIA Deputy Director of Digital Innovation as a “digital Pearl Harbor,” and the disclosure caused exceptionally grave harm to the national security of the U.S. Following the WikiLeaks Disclosures, SCHULTE was voluntarily interviewed on multiple occasions by the FBI in March 2017. During those interviews, SCHULTE repeatedly lied, including denying being responsible for the theft of the Stolen CIA Files or for the WikiLeaks Disclosures and spinning fake narratives about ways the Stolen CIA Files could have been obtained from CIA computers, in the hope of deflecting suspicion away from SCHULTE and diverting law enforcement resources to false leads. In March 2017, the FBI searched SCHULTE’s apartment in New York pursuant to a search warrant and recovered, among other things, multiple computers, servers, and other electronic storage devices, including SCHULTE’s personal desktop computer (the “Desktop Computer”), which SCHULTE built while living in Virginia and then transported to New York in November 2016. On the Desktop Computer, FBI agents found layers of encryption hiding tens of thousands of videos and images of child sexual abuse materials, including approximately 3,400 images and videos of disturbing and horrific child pornography and the rape and sexual abuse of children as young as two years old, as well as images of bestiality and sadomasochism. SCHULTE collected some of these files during his employment with the CIA and continued to stockpile child pornography from the dark web and Russian websites after moving to New York. While detained pending trial, in approximately April 2018, SCHULTE sent a copy of the affidavit in support of the warrant to search his apartment, which a protective order entered by the Court prohibiting SCHULTE from disseminating, to reporters from two different newspapers, and SCHULTE acknowledged in recorded phone calls that he knew he was prohibited from sharing protected material like the affidavit. Despite being warned by the Court not to violate the protective order further, in the summer and fall of 2018, SCHULTE made plans to wage what he proclaimed to be an “information war” against the U.S. government. To pursue these ends, SCHULTE obtained access to contraband cellphones while in jail that he used to create anonymous, encrypted email and social media accounts. SCHULTE also attempted to use the contraband cellphones to transmit protected discovery materials to WikiLeaks and planned to use the anonymous email and social media accounts to publish a manifesto and various other postings containing classified information about CIA cyber techniques and cyber tools. In a journal, SCHULTE wrote that he planned to “breakup diplomatic relationships, close embassies, [and] end U.S. occupation across the world[.]” SCHULTE successfully sent emails containing classified information about the CCI development network and the number of employees in particular CIA cyber intelligence groups to a reporter. As a result of this conduct, on March 9, 2020, SCHULTE was found guilty at trial of contempt of court and making material false statements. On July 13, 2022, SCHULTE was found guilty at trial of eight counts: illegal gathering and transmission of national defense information in connection with his theft and dissemination of the Stolen CIA Files, illegal transmission and attempted transmission of national defense information, unauthorized access to a computer to obtain classified information and information from a department or agency of the U.S. in connection with his theft of the Stolen CIA Files, and two counts of causing transmission of harmful computer commands in connection with his theft of the Stolen CIA Files. Finally, on September 13, 2023, SCHULTE was found guilty at trial on charges of receiving, possessing, and transporting child pornography. * * * In addition to the prison term, SCHULTE, 35, of New York, New York, was sentenced to a lifetime of supervised release. Mr. Williams praised the outstanding efforts of the Counterintelligence Division and the Child Exploitation and Human Trafficking Task Force of the FBI’s New York Field Office, as well as the extraordinary work of FBI computer scientists from the Cyber Action Team. Mr. Williams also thanked the FBI Washington Field Office, the CIA Office of General Counsel, and the National Security Division’s Counterintelligence and Export Control Section for their assistance. This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr., Michael D. Lockard, and Nicholas S. Bradley are in charge of the prosecution.


title: Norman Man to Serve Nearly Five Years in Federal Prison for Lying About Not Being Under Felony Indictment or Subject to Protective Order when He Attempted to Purchase a Firearm

component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – Earlier this week, THOMAS LAVERNE BROWN , 50, of Norman, was sentenced to serve 57 months in federal prison for making a false statement during the attempted purchase of a firearm, announced U.S. Attorney Robert J. Troester. On January 17, 2023, a federal grand jury returned a four-count Indictment against Brown, charging him with making a false statement during the attempted purchase of a firearm, two counts of possession of an unregistered firearm, and possession of firearms by a prohibited person. The Indictment further alleges that in August 2022, Brown was found in possession of several firearms. On June 6, 2023, Brown pleaded guilty to making a false statement during the attempted firearm purchase. According to public record, on August 20, 2021, Brown was charged with felony domestic assault and battery by strangulation in Cleveland County District Court case number CF-2021-1139. Public record further reflects that on October 6, 2021, a protective order had been issued against Brown in Cleveland County District Court case number PO-2021-328. That protective order was effective through October 6, 2026. In July 2022, Brown then attempted to purchase a firearm at a Norman pawn shop. Under federal law, it is illegal to receive a firearm while under indictment for a felony or possess a firearm while subject to a protective order. In connection with that attempted purchase, Brown filled out paperwork for the National Instant Criminal Background Check System and falsely indicated on the paperwork that he was not under indictment for a felony or subject to a protective order. At the sentencing hearing on January 29, 2024, U.S. District Judge Stephen P. Friot sentenced Brown to serve 57 months in federal prison, followed by three years of supervised release. In announcing the sentence, the court noted the nature and circumstances of the offense and the need to promote respect for the law. This case is the result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Wilson D. McGarry prosecuted the case. This case is also part of “Operation 922.” Operation 922 is the Western District of Oklahoma’s implementation of Project Safe Neighborhoods, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. “Operation 922” prioritizes prosecution of federal crimes connected to domestic violence. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok . Reference is made to public filings for additional information.


title: Bristol Man Sentenced for Defrauding Consumers by Interstate Wire

component: USAO - Vermont

body_text: Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that David Conrad, 42, of Bristol, Vermont was sentenced on January 30, 2024 to a 5-year term of probation, following his guilty plea to conducting a wire fraud scheme between approximately January of 2022 and February 28, 2023. United States District Judge Christina Reiss also ordered Conrad to pay $58,430.52 in restitution to 43 victims, and to forfeit $58,430.52 of fraudulently obtained proceeds to the United States. According to court records, David Conrad operated a custom woodworking business under the names “Old Camp Woodworking” and “Vermont Custom Designs.” Conrad was the sole employee of the business, which he ran out of the two-car garage attached to his residence in Bristol, Vermont. Conrad advertised his businesses on Facebook, and had stand-alone websites which allowed customers to place orders for custom wood items, such as dining tables, dressers, bedroom sets, desks, and other items. Parts of these websites were plagiarized from other woodworking websites, and some of the photographs on the websites were not original photographs of custom pieces crafted by Conrad, but rather copies of photographs from elsewhere on the internet. Conrad’s websites displayed strict cancelation and refund policies, listing a 25% processing fee for orders canceled within 24 hours; a 75% processing fee for orders canceled within 30 days; and no refunds for orders canceled after 30 days. Between January 2022 and February 2023, Conrad accepted approximately $165,500 through various payment methods for over 100 different items ordered by customers in Vermont, New York, and New Hampshire. As part of the scheme to defraud, Conrad accepted payment for items he knew he could not complete within the 12-to-16-week timeframe he quoted customers. Conrad made numerous false statements to customers regarding the status of their orders and regarding why orders had not been completed (including false claims of having had a heart attack and cutting off a portion of his finger). Conrad used his strict refund policy as a reason to retain funds from customers, despite not having begun work on their orders. Conrad used funds obtained from customers to pay for his and his family’s personal expenses, while knowing that he would be unable to complete the custom-made wood item ordered by the customer. United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations, and thanks the Vermont Attorney General’s Consumer Assistance Program for its assistance in compiling consumer complaints and their collaborative work on the investigation. The prosecutor was Assistant United States Attorney Jonathan A. Ophardt. Conrad was represented by Chandler Matson, Esq.


title: Louisville Man Sentenced to Over 14 Years in Federal Prison for Child Exploitation Offenses

component: USAO - Kentucky, Western

body_text: Louisville, KY – A Louisville man was sentenced yesterday to 14 years and 7 months in federal prison for receipt and possession of child pornography. U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Rana Saoud of the Homeland Security (HSI) Investigations Nashville made the announcement. According to court documents, Rudy Osorio-Rodas, 38, was sentenced to 14 years and 7 months in federal prison, followed by 15 years of supervised release, for three counts of receipt of child pornography and one count of possession of child pornography. In December 2022 and January 2023, Osorio-Rodas knowingly received child sexual abuse material on his cellular phone when he downloaded it from multiple online chat applications that specifically existed to receive and distribute child sexual abuse material. Osorio-Rodas also possessed thousands of images and thousands of videos of child sexual abuse material on his phone. There is no parole in the federal system. Osorio-Rodas was also ordered to pay $39,000.00 in restitution to multiple victims in the case. The United States Department of Homeland Security, Homeland Security Investigations (HSI), assisted by the United States Immigration and Customs Enforcement and the Jeffersontown Police Department, investigated the case. Assistant U.S. Attorney Christopher Tieke prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.” ###


title: Federal Inmate Pleads Guilty to Assaulting a Federal Corrections Officer at the Federal Transfer Center in Oklahoma City

body_text: OKLAHOMA CITY – Today, REYES LUIS HOLGUIN , 31, of Phoenix, Arizona, pleaded guilty to assaulting a federal officer, announced U.S. Attorney Robert J. Troester. On November 7, 2023, a federal grand jury charged Holguin with assault on a federal officer or employee involving physical contact. According to public record, in August 2023 Holguin was a temporary inmate at the Federal Transfer Center in Oklahoma City when he assaulted a federal corrections officer. At a change of plea hearing today, Holguin pleaded guilty to physically assaulting a federal corrections officer, after Holguin had entered the office of a corrections officer without permission. At sentencing, Holguin faces up to eight years in federal prison and a fine of up to $250,000.00. This case is the result of an investigation by the Bureau of Prisons Special Investigative Services. Assistant U.S. Attorney Bow Bottomly is prosecuting the case. Reference is made to public filings for additional information.


title: California Drug Trafficker Sentenced to Federal Prison

component: USAO - Oregon

body_text: PORTLAND, Ore.—A Fontana, California man was sentenced to federal prison Wednesday for his role in a local drug distribution ring responsible for trafficking large quantities of illegal narcotics from Mexico into the Portland metro area for redistribution and sale. Javier Sarabia, 28, was sentenced to 151 months in federal prison and five years’ supervised release. According to court documents, beginning in April 2019, special agents from the U.S. Drug Enforcement Administration (DEA) and other law enforcement agencies began investigating a drug trafficking organization operating in Portland and Vancouver, Washington. On April 22, 2019, investigators stopped a vehicle traveling north on Interstate 5 toward Portland. An initial search of the vehicle returned $23,000 in cash and what appeared to be hand-written drug ledgers. Later, while conducting a full search of the vehicles, investigators found two after-market compartments under the vehicle’s front seats concealing 100 pounds of crystal methamphetamine and eight pounds of heroin. Further investigation revealed that the driver of the seized vehicle had recently communicated with Sarabia who served as a drug load coordinator, stash house operator, courier, and sub-distributor for the trafficking organization. It was later determined that Sarabia himself had arranged for the drugs to be loaded into the seized vehicle. One month later, on May 28, 2019, as part of an unrelated law enforcement operation, police in Chino, California stopped Sarabia in a vehicle that was found to contain approximately ten pounds of methamphetamine. Sarabia confessed to his involvement in the drug trafficking organization and admitted to personally loading the drugs into the vehicle stopped and seized in Oregon. On August 14, 2019, a federal grand jury in Portland returned a five-count indictment charging Sarabia and eleven others with conspiracy to possess with intent to distribute and distribute controlled substances, use a communication facility, and maintain drug-involved premises, and other related charges. On October 18, 2023, Sarabia pleaded guilty to the conspiracy charge. Sarabia is the eleventh person in the conspiracy to be sentenced. The twelfth and final defendant is a fugitive. This case was investigated by DEA with assistance from the Tigard Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.


title: El Paso Fentanyl Dealer Sentenced to More Than 10 Years in Prison

component: Drug Enforcement Administration (DEA)

body_text: EL PASO, Texas – An El Paso man was sentenced in a federal court in El Paso to 130 months in prison for possession with intent to distribute fentanyl. According to court documents, Gary Everett Rinker, 56, sold approximately 200 pills containing 19.8 grams of fentanyl to a buyer at an El Paso hotel. The criminal complaint filed July 12, 2023 alleged that over a separate three-day period Rinker sold quantities of counterfeit Oxycodone Hydrochloride 30 mg tablets to the buyer, totaling approximately 55 grams of fentanyl. Rinker was arrested in July 2023 and pleaded guilty Nov. 1, 2023. “This defendant was a prominent fentanyl dealer in the El Paso community who will spend the next decade off our streets, largely due to his extensive drug-related criminal history dating back to 2007,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I commend the joint efforts of our partners at FBI and the Drug Enforcement Administration, as well as the dedicated attorneys of the Western District who continue to aggressively prosecute these offenders.” “Fentanyl continues to be a considerable threat to our communities, ending the lives of our neighbors, friends and loved ones who, in many cases, aren’t even aware they’re taking the drug,” said Special Agent in Charge John Morales for the FBI El Paso Field Office. “FBI El Paso and our Drug Enforcement Administration partners are working together will come after anyone supplying poison to innocent lives and bring them to justice.” “Our Fentanyl Overdose Response Team (FORT) does not just investigate fatalities caused by fentanyl,” said Towanda Thorne-James, Special Agent in Charge of the DEA’s El Paso Division. “By putting Mr. Rinker behind bars, FORT worked proactively to potentially save lives. Rinker was not the first fentanyl dealer targeted by our FORT, and he won’t be the last.” The FBI and DEA investigated the case. Assistant U.S. Attorney Richard Watts prosecuted the case. ###


title: Former CIA Officer Joshua Adam Shulte Sentenced to 40 Years in Prison for Espionage and Child Pornography Charges

component: Federal Bureau of Investigation (FBI)

body_text: Joshua Adam Schulte, 35, of New York, New York, was sentenced today to 480 months in prison for crimes of espionage, computer hacking, contempt of court, making false statements to the FBI, and child pornography. Schulte’s theft is the largest data breach in the history of the CIA, and his transmission of that stolen information to WikiLeaks is one of the largest unauthorized disclosures of classified information in the history of the United States. Today’s sentencing followed Schulte’s convictions at trials that concluded on March 9, 2020, July 13, 2022, and Sept. 13, 2023. “Mr. Schulte severely harmed U.S. national security and directly risked the lives of CIA personnel, persisting in his efforts even after his arrest,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As today’s sentence reaffirms, the Department of Justice is committed to investigating, prosecuting, and holding accountable those who would violate their constitutional oath and betray the trust of the American people they pledged to protect.” “Joshua Schulte betrayed his country by committing some of the most brazen, heinous crimes of espionage in American history," said U.S. Attorney Damian Williams for the Southern District of New York. "He caused untold damage to our national security in his quest for revenge against the CIA for its response to Schulte’s security breaches while employed there. When the FBI caught him, Schulte doubled down and tried to cause even more harm to this nation by waging what he described as an ‘information war’ of publishing top secret information from behind bars. And all the while, Schulte collected thousands upon thousands of videos and images of children being subjected to sickening abuse for his own personal gratification. The outstanding investigative work of the FBI and the career prosecutors in this office unmasked Schulte for the traitor and predator that he is and made sure that he will spend 40 years behind bars – right where he belongs.” “Joshua Schulte caused grave harm to U.S. national security and contributed to the abuse of scores of innocent children,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Using his expertise, Schulte stole and exposed classified national security information including some of the U.S. government’s most sensitive techniques and personnel, but he didn’t only exploit the U.S. government – he also exploited vulnerable children by collecting images and videos capturing their horrific abuse for his own pleasure. Together with our partners, the FBI will remain steadfast in our pursuit of those who put the security of the American people and its most vulnerable citizens at risk.” According to court documents, from 2012 to 2016, Schulte was employed as a software developer in the Center for Cyber Intelligence (CCI), which conducts offensive cyber operations: cyber espionage relating to terrorist organizations and foreign governments. Schulte and other CCI developers worked on tools that were used in, among other things, human-enabled operations: cyber operations that involved a person with access to the computer network being targeted by the cyber tool. In addition to being a developer, Schulte was also temporarily one of the administrators of one of the servers and suite of development programs used to build cyber tools. In March 2016, Schulte was moved within branches of CCI as a result of personnel disputes between Schulte and another developer. Following that transfer, in April 2016, Schulte abused his administrator powers to grant himself administrator privileges over a development project from which he had been removed as a result of the branch change. Schulte’s abuse of administrator privileges was detected, and CCI leadership directed that administrator privileges would immediately be transferred from developers, including Schulte, to another division. Schulte was also given a warning about self-granting administrator privileges that had previously been revoked. Schulte had, however, secretly opened an administrator session on one of the servers before his privileges were removed. On April 20, 2016, after other developers had left the CCI office, Schulte used his secret server administrator session to execute a series of cyber-maneuvers on the CIA network to restore his revoked privileges, break in to the backups, steal copies of the entire CCI tool development archives (the Stolen CIA Files), revert the network back to its prior state, and delete hundreds of log files in an attempt to cover his tracks. Schulte’s theft of the Stolen CIA Files is the largest data breach in CIA history. From his home computer, Schulte then transmitted the Stolen CIA Files to WikiLeaks, using anonymizing tools recommended by WikiLeaks to potential leakers, such as the Tails operating system and the Tor browser. On May 5, 2016, having transmitted the Stolen CIA Files to WikiLeaks, Schulte wiped and reformatted his home computer’s internal hard drives. On March 7, 2017, WikiLeaks began publishing classified data from the Stolen CIA Files. Between March and November 2017, there were a total of 26 disclosures of classified data from the Stolen CIA Files that WikiLeaks denominated as Vault 7 and Vault 8 (the WikiLeaks Disclosures). The WikiLeaks Disclosures were one of the largest unauthorized disclosures of classified information in the history of the United States, and Schulte’s theft and disclosure immediately and profoundly damaged the CIA’s ability to collect foreign intelligence against America’s adversaries; placed CIA personnel, programs, and assets directly at risk; and cost the CIA hundreds of millions of dollars. The effect was described at trial by the former CIA Deputy Director of Digital Innovation as a “digital Pearl Harbor,” and the disclosure caused exceptionally grave harm to the national security of the United States. Following the WikiLeaks Disclosures, Schulte was voluntarily interviewed on multiple occasions by the FBI in March 2017. During those interviews, Schulte repeatedly lied, including denying being responsible for the theft of the Stolen CIA Files or for the WikiLeaks Disclosures, and spinning fake narratives about ways the Stolen CIA Files could have been obtained from CIA computers, in the hope of deflecting suspicion away from Schulte and diverting law enforcement resources to false leads. In March 2017, the FBI searched Schulte’s apartment in New York pursuant to a search warrant and recovered, among other things, multiple computers, servers, and other electronic storage devices, including Schulte’s personal desktop computer (the Desktop Computer), which Schulte built while living in Virginia and then transported to New York in November 2016. On the Desktop Computer, FBI agents found layers of encryption hiding tens of thousands of videos and images of child sexual abuse materials, including approximately 3,400 images and videos of disturbing and horrific child pornography and the rape and sexual abuse of children as young as two years old, as well as images of bestiality and sadomasochism. Schulte collected some of these files during his employment with the CIA and continued to stockpile child pornography from the dark web and Russian websites after moving to New York. While detained pending trial, in approximately April 2018, Schulte sent a copy of the affidavit in support of the warrant to search his apartment, which a protective order entered by the court prohibiting Schulte from disseminating, to reporters from two different newspapers, and Schulte acknowledged in recorded phone calls that he knew he was prohibited from sharing protected material like the affidavit. Despite being warned by the court not to violate the protective order further, in the summer and fall of 2018, Schulte made plans to wage what he proclaimed to be an “information war” against the U.S. government. To pursue these ends, Schulte obtained access to contraband cellphones while in jail that he used to create anonymous, encrypted email and social media accounts. Schulte also attempted to use the contraband cellphones to transmit protected discovery materials to WikiLeaks and planned to use the anonymous email and social media accounts to publish a manifesto and various other postings containing classified information about CIA cyber techniques and cyber tools. In a journal, Schulte wrote that he planned to “breakup diplomatic relationships, close embassies, [and] end U.S. occupation across the world[.]” Schulte successfully sent emails containing classified information about the CCI development network and the number of employees in particular CIA cyber intelligence groups to a reporter. As a result of this conduct, on March 9, 2020, Schulte was found guilty at trial of contempt of court and making material false statements. On July 13, 2022, Schulte was found guilty at trial of eight counts: illegal gathering and transmission of national defense information in connection with his theft and dissemination of the Stolen CIA Files, illegal transmission and attempted transmission of national defense information, unauthorized access to a computer to obtain classified information and information from a department or agency of the U.S. in connection with his theft of the Stolen CIA Files, and two counts of causing transmission of harmful computer commands in connection with his theft of the Stolen CIA Files. Finally, on Sept. 13, 2023, Schulte was found guilty at trial on charges of receiving, possessing, and transporting child pornography. The FBI Counterintelligence Division and Child Exploitation and Human Trafficking Task Force of the FBI New York Field Office investigated the case, with the extraordinary assistance of FBI computer scientists from the Cyber Action Team. The FBI Washington Field Office, CIA Office of General Counsel, and National Security Division’s Counterintelligence and Export Control Section provided significant assistance. Assistant U.S. Attorneys David W. Denton Jr., Michael D. Lockard, and Nicholas S. Bradley for the Southern District of New York prosecuted the case.


title: Windsor Mill Woman Pleads Guilty to Conspiring to Obtain More Than $3.5 Million in COVID-19 CARES Act Loans

component: USAO - Maryland

body_text: Baltimore , Maryland –Tomeka Glenn, a/k/a “Tomeka Harris” and “Tomeka Davis,” age 47, of Windsor Mill, Maryland, pleaded guilty today to conspiracy to commit wire fraud, relating to the submission of millions of dollars in fraudulent COVID-19 CARES Act Paycheck Protection Program and Economic Injury Disaster Loan applications. Glenn’s co-defendant, Kevin Davis, age 43, also of Windsor Mill, Maryland, pleaded guilty on January 25, 2024, to being a felon in possession of a firearm and ammunition. The guilty pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation (“FBI”), Baltimore Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector Genera (“SBA-OIG”), Eastern Region; and Chief Robert McCullough of the Baltimore County Police Department. Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (“SBA”). The SBA also offered an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. An EIDL advance did not have to be repaid, and small businesses could receive an advance, even if they were not approved for an EIDL loan. The maximum advance amount was $10,000. According to Glenn’s plea agreement, beginning in June 2020 and continuing through March 2021, Glenn and various co-conspirators prepared numerous false and fraudulent EIDL and PPP loan applications for various businesses (including some that did not exist in any legitimate capacity) and that included false information concerning, among other things, number of employees, monthly payroll costs, and revenue. The PPP applications also routinely included false and fraudulent Internal Revenue Service (“IRS”) tax forms and bank statements, which were submitted by Glenn to substantiate the false representations made in the applications. Glenn admitted that she received kickback payments from the loan borrowers in exchange for her assistance in connection with the submission of fraudulent PPP and EIDL applications, ultimately receiving more than $400,000 in kickbacks in connection with the scheme. These kickbacks typically amounted to 10% to 20% of the loan amount. In total, the kickback scheme resulted in the disbursement of at least $2,715,649.12 in fraudulently obtained PPP and EIDL funds in connection with 23 fraudulent PPP loans and EIDLs. According to Glenn’s plea agreement, Glenn and her then-fiancé Davis, received $300,726.50 in PPP/EIDL funds for various entities that they controlled, and Glenn attempted to obtain $601,511.20 in additional fraudulent PPP and EIDL funds too. Glenn used the fraudulently obtained funds to pay for a luxury vacation at a resort in Jamaica, to purchase a 2021 Mercedes-Benz S580 sedan valued at $148,171.60, to buy thousands of dollars in luxury jewelry, as well as numerous other luxury goods, including items from Luis Vuitton, Neiman Marcus, Dior, Cartier, Gucci, Chanel, and Hermes. At the time of her scheme, neither Glenn, nor Davis had any legitimate source of income, and in May 2020, each applied for unemployment insurance benefits in the State of Maryland. As detailed in Davis and Glenn’s plea agreement, on January 6, 2023, law enforcement executed a federal search warrant at their residence. Davis and Glenn were present at the residence at the time of the search and were arrested in connection with the fraudulent COVID-19 CARES Act loans. According to Davis’s plea agreement, during the execution of the search warrant, law enforcement found and seized four firearms loaded with ammunition—a 9mm firearm, and three .40 caliber firearms. Later investigation revealed that the one of the .40 caliber firearms had earlier been reported stolen by its owner. As detailed in the plea, the firearms were hidden by Davis in the air ducts of the residence: two firearms were hidden in the main bedroom air duct where Davis slept and kept his personal effects; the other two firearms were in the air duct of the bathroom closest to the main bedroom. Moreover, two of the firearms were further stuffed in socks in attempt to hide them. Davis admitted that he possessed and secreted the firearms in the air ducts of his home (and in the socks) in an attempt to conceal them from law enforcement after learning that federal agents had a warrant to search his home. Davis’s concealment of the firearms constitutes attempted obstruction of the administration of justice with respect to the investigation. Each of the four firearms recovered from Davis’s home on January 6, 2023 were later found to have his DNA on them. A later review of Davis’s iCloud account revealed the existence of, among other things, a series of videos depicting Davis handling firearms, including a shotgun and an assault rifle. Davis knew that his previous felony conviction prohibited him from possessing firearms or ammunition. As part of their plea agreements, Glenn and Davis will be required to forfeit their interest in any assets derived from or obtained by them as a result of, or used to facilitate the commission of, their illegal activities. Specifically, Glenn is required to forfeit a money judgment in the amount of at least $700,726.50; the 2021 Mercedes-Benz; cash in bank accounts she controlled that were held in the names of business entities; and jewelry, including her 3.03 carat yellow diamond engagement ring, a Diamond Miami Cuban Link Chain with 31.5 carats of VS1 diamonds, and Rolex, Cartier and Breitling watches. Davis must forfeit the firearms and ammunition. Glenn faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and Davis faces a maximum of 15 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Judge Richard D. Bennett has scheduled Glenn’s sentencing for May 7, 2024, at 2:30 p.m. and scheduled sentencing for Davis on April 17, 2024, at 11:00 a.m. The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. For more information on the Department’s response to the pandemic, please visit 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 . United States Attorney Erek L. Barron commended the FBI, the SBA-OIG, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md . # # #


title: New Orleans Man Pleads Guilty to Fentanyl Distribution

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

body_text: NEW ORLEANS , LOUISIANA – United States Attorney Duane A. Evans announced that ANYTHONY DOYLE (“DOYLE”) , age 40, a resident of New Orleans, pled guilty on January 31, 2024 to three (3) counts of distribution of Fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). In pleading guilty, the defendant faces, as to Counts One and Two, up to twenty (20) years in prison, at least three years of supervised release, and a fine of up to $1,000,000. As to Count Three, the defendant faces a minimum of five (5) years in prison, up to a maximum of forty (40) years, at least four years of supervised release, and a fine of up to $5,000,000. As to each count, DOYLE faces payment of a mandatory special assessment fee of $100. According to court documents, on at least three (3) separate occasions in August of 2023, DOYLE sold Fentanyl to special agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. These transactions were audio and video recorded. Chief United States District Judge Nannette Jolivette Brown set sentencing in this matter for May 16, 2024. The U.S. Attorney’s Office would like to acknowledge the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives on this investigation. The prosecution of this case is being handled by Assistant United States Attorney Maria M. Carboni of the Financial Crimes Unit.


title: Former Employee at Skilled Nursing Facility Sentenced for Criminal Abuse of a Vulnerable Adult

component: Office of the Inspector General

body_text: WASHINGTON – Kevin Thomas, 57, of Washington, D.C., was sentenced today in Superior Court for one count of criminal abuse of a vulnerable adult or elderly person, announced U.S. Attorney Matthew M. Graves for the District of Columbia, and Daniel W. Lucas, Inspector General for the District of Columbia. Superior Court Judge Deborah J. Israel accepted Thomas’ guilty plea today and ordered 180 days in jail, suspended, 18 months of supervised probation, mental health and drug treatment services as deemed necessary, and ordered that Thomas make a $50 payment to the Victims of Violent Crimes Fund. According to court documents, Thomas was employed as a customer service representative and smoking aide at Capital City Skilled Nursing Facility (CCSNF), a residential rehabilitation and healthcare center, located in Southeast Washington. Thomas’ job duties included taking individuals outside of the facility to their designated smoking area. On November 29, 2021, a resident of the facility reported that a staff member pushed him from his wheelchair while he was attempting to enter CCSNF’s smoking area. The victim has physical and psychological disabilities that would classify him as a “vulnerable adult” under D.C. Code § 22-932. During a subsequent interview, the victim stated that the staff member, identified as Thomas, pushed him and he fell out of his wheelchair and onto the ground, where he laid for several minutes without assistance from the defendant. After reviewing video of the incident, Thomas was immediately suspended from CCSNF, who then reported the abuse to the District’s Department of Health. This prosecution is indicative of the continued collaboration between the U.S. Attorney’s Office and the D.C. Office of the Inspector General (D.C. OIG) to protect vulnerable adults. The D.C. OIG operates the District’s Medicaid Fraud Control Unit (MFCU), which is statutorily responsible for investigating and prosecuting District Medicaid provider fraud as well as abuse or neglect of residents in health care facilities and board and care facilities and of beneficiaries in noninstitutional or other settings. The government urges the public to provide tips and assistance to stop health care fraud and abuse, neglect, or exploitation of vulnerable adults. If you have information about individuals committing these types of offenses, please call the D.C. Office of the Inspector General at 202-724-TIPS [202-724-8477]. In announcing the guilty plea, U.S. Attorney Graves, and Inspector General Lucas commended the work of those who investigated the case from the D.C. OIG MFCU. They also acknowledged the efforts of the D.C. Department of Health for their initial response. They commended the work of Special Assistant United States Attorney Jason Facci, on detail from the D.C. OIG, who prosecuted the case.


title: Boston Man Pleads Guilty to Unlawful Trafficking of Machinegun Conversion Devices

body_text: BOSTON – A Boston man pleaded guilty today in federal court in Boston to illegally selling a dozen machinegun conversion devices. Michael Wilkerson, 23, pleaded guilty to one count of engaging in the business as a manufacturer or dealer in firearms. U.S. District Court Judge Denise J. Casper scheduled sentencing for April 30, 2024. Wilkerson was initially arrested and charged along with co-defendant Elijah Navarro in February 2023. The defendants were subsequently indicted by a federal grand jury in March 2023 . In January 2023, Navarro agreed to sell 12 machinegun conversion devices to an individual in exchange for $1,700. Following a series of communications, Navarro met the individual twice at a pre-arranged location. On Jan. 19, 2023, Navarro sold the first two machinegun conversion devices for $400 and later, on Jan. 25, 2023, Navarro sold the remaining 10 devices for an additional $1,300 out of Wilkerson’s residence. During a search of Wilkerson’s residence in February 2023, two 3-D printers, 3-D printing material, machinegun conversion devices, a ballistic vest as well as firearms, ammunition and magazines were seized. Neither Navarro nor Wilkerson possess licenses to import, manufacture, deal or possess firearms. Navarro pleaded guilty to his role in the conspiracy in December 2023 . He is scheduled to be sentenced on March 13, 2024. The charge of engaging in the business as a manufacturer or dealer in firearms provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $10,000. The charge of unlawful transferring or possession of a machinegun provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner Michael A. Cox made the announcement today. Assistant U.S. Attorney John T. Dawley of the Organized Crime & Gang Unit is prosecuting the case.


title: Owner of Closed Substance Use Treatment Facility in Florida Sentenced to 26 Months in Prison for Conspiring to Defraud Health Insurers

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Terrence Livorsi, 69, of Glenside, Pennsylvania, has been sentenced to 26 months’ imprisonment and two years of supervised release, and ordered to pay $287,654.72 in restitution, a $10,000 fine, and $100 special assessment for conspiring to commit health care fraud, arising from his operation of an Employee Assistance Program (“EAP”). Livorsi used the EAP to funnel patients to addiction treatment at facilities and programs that he owned in Florida, in order to bill patients’ medical insurance for treatment, including treatment that was not medically necessary. Livorsi offered his EAP services free of charge and marketed the services mainly to public sector labor unions in New Jersey. Livorsi and his EAP encouraged union officials and representatives to call when a union member was in distress or facing workplace discipline. Upon referral of a union member for EAP services, Livorsi and/or an employee of the EAP collected information from the person, including asking the prospective patient about his or her use of alcohol or drugs. Many prospective patients did not have substance use disorders but were nevertheless fraudulently referred to Recovery Institute of South Florida (“RISF”), a substance use treatment facility that Livorsi also owned and operated. Patients were pressured to fly to Florida immediately for treatment at RISF, allegedly to save their jobs. The people that Livorsi and his staff members referred to RISF were not told that Livorsi owned RISF or that he would benefit financially by billing their health insurance. From at least January 2014 until RISF closed in April 2018, it was the business of Livorsi’s EAP to send patients to treatment at RISF. RISF depended on the EAP to refer patients for treatment and made money by billing insurers for those referred patients. The EAP, which did not charge anyone for its services, depended on RISF to finance its operations. As the sole owner of both RISF and the EAP, Livorsi controlled every aspect of their operations, including the finances and bank accounts of both organizations. Livorsi directly profited when RISF profited. Livorsi directed RISF to pay bonuses to his staff, including himself, for admissions to RISF that the employee had procured. Although he was not a licensed caregiver and was infrequently present at RISF, Livorsi exercised control over when patients could be discharged from RISF and would keep patients as long as possible to maximize the opportunities to bill insurance. Livorsi was charged by an information filed April 11, 2023, and entered a plea of guilty on May 8, 2023. “Terrence Livorsi’s scheme was to use an Employee Assistance Program he owned to funnel patients to a drug treatment facility that he also owned — whether they had substance abuse issues or not — keep them there as long as possible, and profit,” said U.S. Attorney Romero. “He gave no thought to these people’s wellbeing, or their lives and livelihoods, just the money he could bilk from their insurance plans. Health care fraud is an incredibly costly crime and a high priority for the Department of Justice. That’s why we and the FBI will continue to work together to hold fraudsters like Terrence Livorsi accountable.” The case was investigated by the FBI Philadelphia Health Care Fraud Task Force, which includes agents from the Pennsylvania Attorney General's Office and the Philadelphia Police Department, and the Employee Benefit Security Administration of the United States Department of Labor, and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.


title: Canadian Man Pleads Guilty to Role in Scheme that Manipulated Penny Stock Prices and Cost Hedge Fund Investors More Than $215 Million

component: USAO - California, Central

body_text: LOS ANGELES – A trader for a group of hedge funds pleaded guilty this afternoon to participating in a scheme that manipulated penny stock prices to inflate the hedge fund’s reported profits – fraudulent gains that generated millions of dollars in management and performance fees – and caused investors to lose more than $215 million when the funds collapsed. Colin Heatherington, 49, of Vancouver, Canada, pleaded guilty to one count of conspiring to commit securities fraud and wire fraud and admitted his role in the scheme run out of Absolute Capital Management Holdings (Absolute Funds), a Cayman Island-based company that managed eight hedge funds from offices in Mallorca, Spain. Heatherington was a securities trader who worked closely with the founder and chief investment officer of Absolute Funds, Florian Wilhelm Jürgen Homm, 64, a German financier who was indicted in March 2013 and is currently a fugitive from justice. As part of the scheme, Heatherington oversaw the purchase of billions of shares of United States-based penny stocks, which were then traded using various manipulative practices, such as cross trading, which fraudulently inflated the value of the stocks and, in turn, the value of the Absolute Funds. Heatherington and others in the scheme also reaped profits through self-dealing trades in which they sold their own shares of artificially inflated penny stocks to the Absolute Funds. After this case was indicted, Heatherington was in Canada, and the United States sought his extradition. After fighting extradition, Heatherington agreed last year to come to the United States. Another defendant in this case – Todd Michael Ficeto, 57, a former Beverly Hills stockbroker – was sentenced to six years in federal prison after being convicted of 18 felonies relating to his managerial role in the scheme to manipulate penny stock prices, which garnered him many millions of dollars from fees and commissions and self-dealing trades. Ficeto also allowed members of the conspiracy to trade the manipulated penny stocks through his company, among other fraudulent acts. Heatherington pleaded guilty before United States District Judge John A. Kronstadt, who scheduled a sentencing hearing for May 9, at which time, Heatherington will face a statutory maximum sentence of 25 years in federal prison. The FBI investigated this matter. The Department of Justice’s Criminal Division’s Office of International Affairs, IRS Criminal Investigation, the United States Securities and Exchange Commission, and the Financial Industry Regulatory Authority (FINRA) provided assistance. Assistant United States Attorneys Cassie D. Palmer of the Public Corruption and Civil Rights Section, Scott Paetty of the Major Frauds Section, and Ian V. Yanniello of the General Crimes Section are prosecuting this case.


title: Final Defendant Sentenced in a Gas Scheme that Cost Victims Over $200,000

component: USAO - Utah

body_text: SALT LAKE CITY, Utah – Emmanuel Dejesus Nina-Perez, 31, of Salt Lake City, was sentenced today to 27 months’ imprisonment by a U.S. District Court Judge as a result of a guilty plea. Nina-Perez is the sixth and final defendant in a three-year conspiracy that defrauded gas station customers and their banks by secretly using Bluetooth enabled skimming equipment to steal customers’ credit card information. According to court documents and statements made at the change of plea hearing, Yarislani Padron-Cruz, 38, a foreign national living in Salt Lake City; Yofre Napoleon Almonte, 50, a foreign national living in Salt Lake City; Iraldo Pereda-Mendez, 36, of Salt Lake City; Jandry Artigas-Reyes, 38, a foreign national living in Salt Lake City; and Yosbel Delgado-Valdes, 44, of Salt Lake City, pleaded guilty to participating in a gas scheme conspiracy that began in 2017 and lasted through 2020. The defendants executed the conspiracy by using Bluetooth enabled skimming equipment that they installed onto gas pumps, specifically, on the motherboard of the internal computer that controls the gas pumps. Skimming equipment contains a Bluetooth card reader/recorder that records information – such as the customers’ credit card number, name and zip code associated with the card. After installation, the defendants would get within range of the Bluetooth skimming device to initiate a wireless Bluetooth connection at the gas pump. The defendants would then download the digital credit card/debit card information captured by and stored in their skimming device. The defendants then encoded the data captured onto duplicate cloned cards and would use them to purchase fuel and other items. Several of the co-conspirators, including Nina-Perez, were either long-haul truck drivers or had close connections to trucking transportation companies who operated fleets of long-haul trucks. Collectively, the defendants are responsible for over $200,000 in losses. In addition to Nina-Perez’s sentence of imprisonment, Padron-Cruz was sentenced to 48 months imprisonment; Almonte was sentenced to 36 months’ imprisonment; Pereda-Mendez was sentenced to 39 months’ imprisonment; Artigas-Reyes was sentenced to 45 months’ imprisonment; and Delgado-Valdes was sentenced to 50 months’ imprisonment. Each has been ordered by the court to pay joint restitution to the victims. The court also ordered the forfeiture of $38,372 cash seized from Nina-Perez’s co-defendants’ residence in connection with their arrests. “The theft of funds and identities imposed a serious burden and harm on the victims,” said U.S. Attorney Trina A. Higgins of the District of Utah. “My office is committed to seeking justice for victims and working with our investigative partners to crack down on this type of fraudulent behavior.” “Filling up our gas tanks is a common, routine activity which means any one of us could have been a victim of this crime,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Fraud not only costs businesses and banks, but places an added burden on citizens to recover from identity theft. We encourage the public to regularly check their bank statements and report any potential fraud to local law enforcement or the FBI.” The case was investigated jointly by the FBI Salt Lake City Field Office and an FBI Task Force Officer with the Salt Lake City Police Department. Assistant United States Attorney Ruth Hackford-Peer and Special Assistant United States Attorney Sachiko J. Jepson of the U.S. Attorney’s Office for the District of Utah prosecuted the case. ### Attachments: emmanuelninaperez.sentencingfactors.pdf


title: Former U.S. Border Patrol Agent Pleads Guilty to Attempting to Distribute Methamphetamine and Receiving Bribes

component: USAO - California, Southern

body_text: SAN DIEGO – Former U.S. Border Patrol Agent Hector Hernandez pleaded guilty in federal court today, admitting that he used his official position to smuggle unauthorized immigrants and illegal drugs across the border in exchange for money. According to his plea agreement, Hernandez admitted to using his official position to open border fences and allowing undocumented immigrants and controlled substances to enter the United States from Mexico. Hernandez also admitted to moving the drugs from the Southern District of California to other locations within the United States. “Agent Hernandez betrayed his badge and his country,” said U.S. Attorney Tara McGrath. “Instead of providing protection from smugglers and drug traffickers, he joined them.” “Border Patrol Agent Hernandez broke the public’s trust and abandoned his oath,” said DEA Special Agent in Charge Shelly Howe. “Law enforcement officers are required to uphold the law, not break it.” “It’s always disheartening when individuals misuse their positions of trust within our government for nefarious activities,” said FBI San Diego Special Agent in Charge Stacey Moy. “Let this be a clear message, that we are absolutely resolved with our partners to rigorously investigate and pursue justice in all cases---even when they involve one of our own.” “Department of Homeland Security Office of the Inspector General is grateful for the continued collaboration with our law enforcement partners as we root out corruption and crime along the Southwest Border. Today’s plea agreement sends a clear message that federal employees will be held accountable for their actions,” said the DHS Inspector General, Dr. Joseph V. Cuffari. Hernandez admitted to taking Mexico-based smugglers on a tour of the US/Mexico border, identifying the best locations to sneak unauthorized immigrants into the United States, and sharing the locations of monitoring devices and cameras near the border to help them evade detection. Hernandez also admitted to opening restricted border fences on at least five occasions and allowing immigrants to enter the United States for cash payments of $5,000 each time. On May 9, 2023, Hernandez met with someone he believed to be a drug trafficker but who was, in fact, an undercover federal agent. During this meeting, Hernandez agreed to pick up a bag full of narcotics that would be hidden near the border fence and bring it to the undercover agent in exchange for $20,000. Undercover agents loaded the bag with 10 kilograms of fake methamphetamine, one pound of real methamphetamine, and a tracking device, before placing the bag in a storm drain near the border fence. Later that evening and while on duty, Hernandez drove his official vehicle to the storm drain and retrieved the bag. He drove the bag to his residence in Chula Vista and left it there for the remainder of his work shift. On May 10, 2023, after his shift was over, Hernandez returned home, retrieved the bag, and drove to meet with the undercover agent. He was arrested at that meeting. Upon arrest, investigators confirmed the bag still contained both the fake and real methamphetamine. After Hernandez was arrested, agents searched his residence and found close to $140,000 in cash and 9 grams of cocaine. By Hernandez’s own admission, at least $110,000 of the seized cash represented proceeds from narcotics trafficking and bribery. As part of his plea agreement, Hernandez forfeited his personal vehicle used to bring the drugs to the undercover agent; $110,000 of the seized cash; and his interest in the residence where the drugs were maintained. This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Lawrence A. Casper. Hernandez is scheduled to be sentenced on April 19, 2024 at 9 a.m. before U.S. District Judge Janis L. Sammartino. DEFENDANTS Case Number 23cr1114-JLS Hector Hernandez Age: 55 Chula Vista, CA SUMMARY OF CHARGES Attempted Distribution of Methamphetamine – 21 U.S.C., Sections 841(a)(1) and 846 Maximum penalty: Life imprisonment with a 10-year mandatory minimum Receiving Bribe by Public Official – 18 U.S.C., Section 201(b)(2) Maximum penalty: Fifteen years in prison INVESTIGATING AGENCIES Department of Homeland Security, Office of the Inspector General Drug Enforcement Administration Federal Bureau of Investigation IRS Criminal Investigation


title: Nonimmigrant visa holder sentenced for violating US gun laws

component: USAO - Texas, Southern

body_text: HOUSTON – A 26-year-old citizen of Niger has been sent to federal prison on firearms charges related to his status in the United States, announced U.S. Attorney Alamdar S. Hamdani. The jury deliberated for approximately one hour following a one-day trial before returning guilty verdicts March 14, 2023, against Moctar Ahmadou Gouroudja Ahmadou. U.S. District Judge Alfred H. Bennett has now ordered Ahmadou to serve 78 months in federal prison. He is also expected to lose his status in the country and face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence concerning his discussions with the individual associated with the attack on Naval Air Station Corpus Christi, about Ahmadou’s downloading of jihad videos including beheadings and that he discussed the possibility of traveling to Palestine to commit jihad. In handing down the sentence, the court noted Ahmadou had been invited to this country to study under a student visa and had violated that privilege. “Moctar Ahmadou, like thousands every year, traveled to the United States under an F-1 visa in search of an American education,” said Hamdani. “But when he took that quest for knowledge to a gun range, picked up a gun, handled the ammo and fired it, he went from student to criminal. This sentence sends a strong message to those like Ahmadou--stay in the classroom and away from the gun range otherwise your American education will come not from a University but from the prison library.” Even though Ahmadou was lawfully present in the United States on a nonimmigrant visa, he violated the terms of that status by illegally using a firearm and ammunition. Ahmadou entered the United States March 24, 2016, from Niger. At the time, he had a nonimmigrant F1 visa, or student visa, to study at the North American University in Stafford. Under that status, he was not permitted to possess or use firearms or ammunition. However, the jury heard that on or around May 17, 2021, Ahmadou participated in handling and firing a handgun at a Texas-based gun range. He purchased a course called “First Shot” which provided training on pistol shooting and range time. Immediately after completing the course, Ahmadou rented a Glock 45. He was seen at the firing line at the gun range holding a pistol and shooting down range towards a target. On May 18, 2021, Ahmadou returned to the same gun range to participate in handling and firing a rifle. The course consisted of firearms safety, manipulation and shooting a rifle. He also possessed and shot a Smith & Wesson, model MP15, .223 caliber rifle and purchased and possessed four boxes of Fiocchi .223 caliber ammunition which he used with the rifle. Ahmadou has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The FBI led the investigation with the assistance of Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of State - Diplomatic Security Service; Homeland Security Investigations; Customs and Border Protection; U.S. Customs and Immigration Service; and Texas Department of Fish and Wildlife conducted the investigation. Assistant U.S. Attorneys Steven Schammel and Richard Bennett prosecuted the case along with Trial Attorney Michael Dittoe of the Justice Department’s Counter Terrorism Section.


title: International fraudster convicted in multi-million dollar advance-fee scheme

body_text: HOUSTON – A 57-year-old Nigerian national has pleaded guilty for his role in a fraud conspiracy perpetrated against victims in more than 20 countries, announced U.S. Attorney Alamdar S. Hamdani. Uche Victor Diuno helped orchestrate a scam in which fraudsters abroad lured victims with false promises of millions in investment funding and inheritances. Diuno and others posed as executives and employees of well-known U.S. banks to deceive victims into making payments to secure purported investment and money transfer agreements. Other members of the conspiracy then laundered these payments through U.S. bank accounts and directed them back to the scheme’s leaders in Nigeria. Diuno admitted he and his co-conspirators used multiple aliases to convince victims the scam was authentic. Diuno also admitted to his role in the laundering of victim funds. Acting on instructions from the scheme’s leader, Diuno directed a co-conspirator to disburse victim funds after receiving them. This included transferring funds to other bank accounts through currency exchangers and purchasing vehicles that were shipped back to scammers in Nigeria. From October 2014 to September 2018, Diuno and his co-conspirators caused losses of nearly $5.7 million. U.S. District Judge Alfred H. Bennett accepted the guilty plea and has set sentencing for May 9. At that time, Diuno faces up to 20 years in federal prison for each charge and a possible maximum fine of either $500,000 or up to twice the value of the victims’ losses. Diuno will remain in custody pending sentencing. The FBI and Department of State – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Christian Latham and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section are prosecuting the case.


title: Slidell Man Sentenced for Violations of the Federal Gun Control Act

body_text: NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that RODERICK WILLIAMS , age 27, of Slidell, was sentenced on January 31, 2024 by the Chief United States District Judge Nannette Jolivette Brown to sixty (60) months imprisonment to be followed by three (3) years of supervised release and a $200 mandatory special assessment fee after previously pleading guilty to two counts of an indictment charging him with 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 April 9, 2023, New Orleans Police Department (NOPD) officers stopped a vehicle being driven by WILLIAMS . Thereafter, officers obtained a search warrant for the vehicle and located a Glock Model 19, 9-millimeter semi-automatic handgun in the trunk. This handgun was loaded, with one bullet in the chamber and carried an extended, twenty-five (25) round magazine. On April 28, 2023, investigators conducted video surveillance of the intersection of Chef Menteur Highway and Werner Drive. Officers noted an unknown black male hold a firearm as he entered a convenience store. NOPD officers were notified, entered the store and as they approached WILLIAMS, he attempted to conceal the firearm in his waistband. After noticing the outline of a firearm in WILLIAMS’s waistband, officers searched him and seized a Glock Model 26, 9-millimeter semi-automatic handgun. WILLIAMS had previously been convicted of felonies that prohibited him from possessing firearms. 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. This case is being prosecuted by Special Assistant United States Attorney Nicholas Rayburn of the Violent Crimes Unit.


title: Four Suspected Drug Traffickers Face Federal Charges After Law Enforcement Seize 370 Gallons of Liquid Heroin

body_text: PORTLAND, Ore.—Four suspected drug traffickers with apparent ties to a Mexico-based transnational criminal organization are facing federal charges today after they were caught transporting nearly 370 gallons of liquid heroin. Marco Antonio Magallon, 44; Luis Deleon Woodward, 26; and Jorge Luis Amador, 25, all of Yakima, Washington, and Santos Alisael Aguilar Maya, 32, whose place of residence is unknown, have been charged by criminal complaint with conspiracy to distribute and possess with intent to distribute heroin and possess with intent to distribute heroin. According to court documents, on January 24, 2024, as part of an ongoing, multi-agency drug trafficking investigation, law enforcement obtained information that several individuals working for a transnational criminal organization were transporting a large load of illegal narcotics into the District of Oregon. Late in the evening of January 24 and in the early morning hours of January 25, 2024, investigators observed a rented moving truck driven by Amador and an accompanying red pickup truck traveling west on Interstate 84 near Bonneville, Oregon. Investigators observed the vehicles travel together to a motel in Tigard, Oregon, making one brief stop in a commercial parking lot in Beaverton, Oregon. Later on January 25, investigators executed federal search warrants on the defendants’ motel room and two vehicles. They located and seized eight 55-gallon barrels containing approximately 370 gallons of a liquid narcotic inside the moving truck and two loaded handguns inside the motel room. All four defendants were arrested without incident. Investigators transported the seized narcotic, which weighed approximately 1.4 metric tons, to the Washington County Sheriff’s Office (WCSO) narcotics room. Lab tests later confirmed the barrels contained liquid heroin. This case is being investigated by Homeland Security Investigations (HSI), WCSO, and the Westside Interagency Narcotics Team (WIN). It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon. WIN is a Washington County, Oregon-based High Intensity Drug Trafficking Area (HIDTA) task force that includes members from the Washington County Sheriff’s Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, U.S. Drug Enforcement Administration (DEA), FBI, and HSI. A criminal complaint is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.


title: Kenyan Citizen Found Guilty of Advance Fee and Investment Fraud Scheme

component: Criminal - Criminal Fraud Section

body_text: WASHINGTON – Paul Maucha, 58, a Kenyan national, was found guilty today of perpetrating an advance fee and investment scheme that defrauded numerous victims. The jury verdict, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and FBI Special Agent in Charge Keri Farley of the FBI Atlanta Field Office. According to court documents and evidence presented at trial, Maucha, along with a co-conspirator, engaged in a scheme through a shell company Maucha controlled, American Eagle Services Group Inc. (AESG), to make numerous misrepresentations to victims about AESG, its assets, and its access to money and capital. In particular, Maucha—through AESG—promised victims who were seeking loans that AESG would provide them with these loans, so long as victims first provided AESG with an advanced fee while misrepresenting the purpose of that fee. AESG also told victims falsely that these advance fees could be refunded if AESG did not fund the loan. As proven at trial, however, Maucha and his co-conspirator knew that AESG did not have the capital to make these loans at the time the lending agreements were executed, and refunds to victims could not be assured because Maucha and his co-conspirator were splitting the fees between themselves and spending them, such that there was no money left to be refunded. The jury convicted Maucha of one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of engaging in monetary transactions in criminally derived property. He is scheduled to be sentenced on May 16, 2024, and faces a maximum penalty of 20 years in prison for each of the conspiracy and wire fraud counts and 10 years in prison for each count of engaging in monetary transactions in criminally derived property. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, and Special Agent in Charge Keri Farley of the FBI Atlanta Field Office made the announcement. The FBI investigated the case, with substantial assistance from Homeland Security Investigations. Trial Attorneys Tian Huang and Tamara Livshiz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christine M. Macey for the District of Columbia are prosecuting the case. Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Joshua S. Rothstein for the District of Columbia previously provided valuable assistance in the investigation.