title: U.S. Attorney Announces Charges Against Leadership Of The Sinaloa Cartel And 25 Other Defendants In Massive Fentanyl Importation And Trafficking Conspiracies

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Lisa O. Monaco, the Deputy Attorney General of the United States, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of fentanyl trafficking, weapons, and money laundering charges contained in three Indictments charging 28 defendants, including 23 based in Mexico, four based in China, and one based in Guatemala. Since at least in or about 2014, the Sinaloa Cartel has run a global fentanyl manufacturing and distribution operation, sending massive quantities of fentanyl — a drug that has killed unprecedented numbers of Americans — into the United States. Cartel leadership includes three sons of the Sinaloa Cartel’s former leader, Joaquín Archivaldo Guzmán Loera, a/k/a “El Chapo,” known as the “Chapitos”: IVAN ARCHIVALDO GUZMAN SALAZAR, JESUS ALFREDO GUZMAN SALAZAR, a/k/a “Alfredo,” and OVIDIO GUZMAN LOPEZ, a/k/a “Raton.” Together with their co-conspirators, the Chapitos allegedly controlled extensive, multi-faceted, and international operations covering the fentanyl trade, which was designed to pump staggering quantities of fentanyl into the United States — in IVAN ARCHIVALDO GUZMAN SALAZAR’s words, to flood the United States with fentanyl in order to supply “streets of junkies.” The Indictments returned today charge not only the Chapitos but also top lieutenants and leadership of the Sinaloa Cartel; alleged manufacturers and distributors of the Sinaloa Cartel’s fentanyl; the managers of the violent armed security apparatus that protects the Sinaloa Cartel’s drug trafficking operations; the sophisticated money launderers who repatriate the Sinaloa Cartel’s drug proceeds back to Mexico; and multiple chemical precursor suppliers in China that fuel the Sinaloa Cartel’s fentanyl distribution operation. Through these efforts, the Chapitos and the Sinaloa Cartel allegedly reaped hundreds of millions of dollars in profits by flooding the United States with fentanyl. Seven defendants are in custody pending extradition proceedings: OVIDIO GUZMAN LOPEZ was arrested in Mexico; CARLOS OMAR FELIEX GUTIERREZ and SILVANO FRANCISCO MARIANO, a/k/a “Rayo,” were arrested in Colombia; SERGIO DUARTE FRIAS, ANA GABRIELA RUBIO ZEA, and HUMBERTO BELTRAN CUEN, a/k/a “Don Chino,” were arrested in Guatemala; and ANASTACIO SOTO VEGA, a/k/a “Tachin,” was arrested in Greece. Additionally, JULIO MARIN GONZALEZ was previously arrested in the United States and will be arraigned before U.S. District Judge Katherine Polk Failla. U.S. Attorney Damian Williams said: “For over a decade, the illicit fentanyl trade has created a plague of addiction, death, and misery for Americans and New Yorkers of all walks of life. As alleged, the sons of the infamous Sinaloa Cartel leader ‘El Chapo,’ Ivan Archivaldo Guzman Salazar, Jesus Alfredo Guzman Salazar, and Ovidio Guzman Lopez, commanded the Sinaloa Cartel’s fentanyl manufacturing and trafficking operation. Today’s charges target not only Sinaloa Cartel leadership but the Cartel’s entire fentanyl infrastructure, including the armed enforcers who use abhorrent violence to protect the Cartel, the lab operators who produce untold quantities of fentanyl, the drug traffickers who move their deadly fentanyl into and throughout the United States, the money launderers who funnel proceeds back to the Cartel, and the China-based chemical suppliers who service the Cartel. I commend the career prosecutors of the Southern District of New York and our partners at the Drug Enforcement Administration for their tireless efforts to disrupt the Sinaloa Cartel’s fentanyl trafficking at all levels. We hope that today’s charges are a major step toward accountability for those who have for so long pushed this poison into our communities.” Attorney General Merrick B. Garland said: “Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies. Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.” Deputy Attorney General Lisa O. Monaco said: “The fentanyl crisis in America – fueled in large part by the Sinaloa cartel – threatens our public health, our public safety, and our national security. Today’s indictments target every element of the Sinaloa Cartel's trafficking network and reflect the Justice Department's commitment to attacking every aspect of this threat: from the chemical companies in China that spawn fentanyl precursors, to the illicit labs that produce the poison, to the networks and money launderers and murderers that facilitate its distribution. Just as we have gone on offense against terrorists and cyber criminals around the globe, the Department is now waging a relentless campaign to disrupt the production and trafficking of fentanyl – before it can reach its victims.” DEA Administrator Anne Milgram said: “Today’s indictments send a clear message to the Chapitos, the Sinaloa Cartel, and criminal drug networks around the world that the DEA will stop at nothing to protect the national security of the United States and the safety and health of the American people. The Chapitos pioneered the manufacture and trafficking of fentanyl – the deadliest drug threat our country has ever faced – flooded it into the United States for the past eight years and killed hundreds of thousands of Americans. Over the last year and a half, the DEA proactively infiltrated the Sinaloa Cartel and the Chapitos network, obtained unprecedented access to the organization’s highest levels, and followed them across the world. I am grateful to the men and women of the DEA for their exceptional work on this case, which is the beginning of our work as ‘One DEA’ to dismantle every part of the criminal cartels that are killing Americans at record rates.” According to the allegations contained in the Indictments, other court filings, and statements made during court proceedings: [1] The Sinaloa Cartel (the “Cartel”) is one of the most powerful drug cartels in Mexico and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States. Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin. Fentanyl is now the leading cause of death for Americans ages 18 to 49, and it has fueled the opioid epidemic that has been ravaging families and communities across the United States for the past approximately eight years. Between 2019 and 2021, fatal overdoses increased by approximately 94%, with an estimated 196 Americans dying each day from fentanyl. The Cartel is led, in part, by IVAN ARCHIVALDO GUZMAN SALAZAR, JESUS ALFREDO GUZMAN SALAZAR, and OVIDIO GUZMAN LOPEZ, who are sons of the Cartel’s notorious former leader, Joaquín Archivaldo Guzmán Loera, a/k/a “El Chapo,” and are known collectively as the “Chapitos.” Since in or about 2014, the Chapitos’ alleged fentanyl trafficking operation for the Cartel has grown exponentially in volume, scale, and sophistication. Under the Chapitos’ leadership, the Cartel operates a vast fentanyl trafficking operation that integrates each step in the fentanyl trade, from manufacture to distribution. Members and affiliates of the Cartel purchase and import fentanyl precursor chemicals from China directly or through third countries, manufacture fentanyl in laboratories in the mountains of Sinaloa, move that fentanyl across the border into the United States, distribute that fentanyl through various networks operating across the United States, and launder the proceeds back to Mexico. As a critical part of the fentanyl trafficking enterprise, the Cartel relies on and directs hundreds of violent, heavily armed soldiers (known as sicarios ) to protect the Cartel’s fentanyl operations at every step and intimidate others who might attempt to cheat, interfere with, or compete against the Cartel through kidnapping, torture, and murder using machineguns and other weaponry. As alleged, the Chapitos’ sicarios operated under the direction of the Chapitos and OSCAR NOE MEDINA GONZALEZ, a/k/a “Panu,” NESTOR ISIDRO PEREZ SALAS, a/k/a “Nini,” and JORGE HUMBERTO FIGUEROA BENITEZ, a/k/a “27,” to kidnap, torture, and kill anyone who opposed the Chapitos. To manufacture fentanyl, the Cartel uses precursor chemicals procured principally from China. As alleged, the Cartel relies on brokers such as ANA GABRIELA RUBIO ZEA, a/k/a “Gaby,” who procure fentanyl precursor chemicals for the Cartel through Chinese chemical companies and the owners and operators of the Chinese chemical companies, including KUN JIANG, YONGHAO WU, a/k/a “Tim,” YAQIN WU, a/k/a “Lily,” and HUATAO YAO, a/k/a “Yao.” The Cartel also employs skilled chemists — or “cooks” — who have expertise in synthesizing fentanyl from the China-sourced precursor chemicals. In one day alone, a Cartel cook can manufacture over 100,000 pills using pill press machines. In some instances, Cartel traffickers under the Chapitos have tested the purity of their fentanyl by testing it on others. For example, in or about 2022, PEREZ SALAZ and FIGUEROA BENITEZ experimented on a woman by injecting her repeatedly with doses of fentanyl until she died. Led by the Chapitos, the trafficking of finished fentanyl powder and pills is a main goal of the Cartel and one of its most lucrative endeavors. Most often, the Cartel’s fentanyl crosses into the United States at ports of entry, including concealed in secret compartments of cars, disguised among goods in tractor-trailers, hidden in luggage on planes, obscured through fake paperwork in shipping containers, or secreted on or in the bodies of drug mules. Once the Cartel’s fentanyl is transported into the United States, Cartel traffickers maintain designated stash locations where the fentanyl is stored, and the Cartel’s U.S.-based distribution network then sells the fentanyl wholesale for retail distribution throughout the United States, including in New York City. In 2022, alone, the DEA seized over 57 million fentanyl-laced pills and over 13,000 pounds of fentanyl powder — the equivalent of approximately 410 million potentially deadly doses of fentanyl. Finally, as alleged, the Cartel relies on increasingly sophisticated ways of laundering fentanyl proceeds from the United States back into Mexico to enrich the Chapitos. For example, over the course of approximately two years, a single Cartel trafficker in the United States assisted in the laundering of more than $24 million in narcotics proceeds belonging to OVIDIO GUZMAN LOPEZ by providing to Cartel money launderers in the United States approximately $15 million and by sending approximately $9 million in bulk cash to Mexico hidden in secret compartments in cars. Other alleged Cartel money launderers, including MARIO ALBERTO JIMENEZ CASTRO, a/k/a “Kastor,” and SERGIO DUARTE FRIAS, have used cryptocurrency wallets to launder hundreds of thousands of dollars in fentanyl proceeds for the Cartel. * * * A chart containing the charges and minimum and maximum penalties each defendant faces is attached. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge. Mr. Williams praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit; Atlanta Division Office; Aviation Division; Boston Division Office; Denver Division Office; Imperial County District Office; Indianapolis District Office; Los Angeles Division Office; Nashville District Office; Newark Division Office; New York Division Office; Omaha Division Office; Orlando District Office; Philadelphia Division Office; Phoenix Division Office; Riverside District Office; Salt Lake City District Office; San Diego Division Office; San Ysidro District Office; Madrid Country Office; Athens Country Office; Bogota Country Office; Canberra Country Office; Guatemala City Country Office; Vienna Country Office; and multiple DEA offices throughout Mexico, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division; the U.S. Department of the Treasury, Office of Foreign Assets Control; and the U.S. Department of State, Rewards for Justice Program. This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kyle A. Wirshba, Nicholas S. Bradley, Sarah L. Kushner, David J. Robles, and Alexander Li are in charge of the prosecution. The charges in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty. United States v. Ovidio Guzman Lopez , 23 Cr. 42 Defendant Age Charges Minimum and Maximum Penalties OVIDIO GUZMAN LOPEZ, a/k/a “Raton” 33 Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Mandatory life in prison United States v. Ivan Archivaldo Guzman Salazar, et al. , 23 Cr. 180 Defendant Age Charges Minimum and Maximum Penalties IVAN ARCHIVALDO GUZMAN SALAZAR 39 Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Mandatory life in prison JESUS ALFREDO GUZMAN SALAZAR, a/k/a “Alfredo” 36 Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Mandatory life in prison OSCAR NOE MEDINA GONZALEZ, a/k/a “Panu” 39 Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Mandatory life in prison NESTOR ISIDRO PEREZ SALAS, a/k/a “Nini” 31 Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Mandatory life in prison JORGE HUMBERTO FIGUEROA BENITEZ, a/k/a “27” 31 Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Mandatory life in prison LIBORIO NUNEZ AGUIRRE, a/k/a “Karateca” 65 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison NOEL PEREZ LOPEZ, a/k/a “Tio” 42 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison SAMUEL LEON ALVARADO 34 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison LUIS JAVIER BENITEZ ESPINOZA, a/k/a “El Fourteen” 22 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison ALAN GABRIEL NUNEZ HERRERA 29 Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering Life in prison; mandatory minimum of 10 years in prison JUAN PABLO LOZANO, a/k/a “Camaron” 30 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison CARLOS LIMON 19 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison JESUS TIRADO ANDRADE 26 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison CARLOS OMAR FELIX GUTIERREZ 22 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison SILVANO FRANCISCO MARIANO, a/k/a “Rayo” 41 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison JULIO MARIN GONZALEZ 32 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison MARIO ALBERTO JIMENEZ CASTRO, a/k/a “Kastor” 34 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison SERGIO DUARTE FRIAS 26 Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering Life in prison; mandatory minimum of 40 years in prison ANA GABRIELA RUBIO ZEA, a/k/a “Gaby” 32 Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering Life in prison; mandatory minimum of 10 years in prison KUN JIANG Unknown Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering Life in prison; mandatory minimum of 10 years in prison YONGHAO WU, a/k/a “Tim” 31 Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering Life in prison; mandatory minimum of 10 years in prison YAQIN WU, a/k/a “Lily” 30 Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering Life in prison; mandatory minimum of 10 years in prison HUATAO YAO, a/k/a “Yao” 32 Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering Life in prison; mandatory minimum of 10 years in prison United States v. Leobardo Garcia Corrales, et al. , S2 23 Cr. 136 Defendant Age Charges Minimum and Maximum Penalties LEOBARDO GARCIA CORRALES, a/k/a “Leo” 53 Fentanyl importation conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices Life in prison; mandatory minimum of 40 years in prison MARTIN GARCIA CORRALES, a/k/a “Tano,” a/k/a “Cachuchas” 43 Fentanyl importation conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices Life in prison; mandatory minimum of 40 years in prison HUMBERTO BELTRAN CUEN, a/k/a “Don Chino” 69 Fentanyl importation conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices Life in prison; mandatory minimum of 40 years in prison ANASTACIO SOTO VEGA, a/k/a “Tachin” 45 Fentanyl importation conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices Life in prison; mandatory minimum of 40 years in prison [1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Two Men Sentenced To 30 And 46 Months In Prison For Scheme To Defraud New York City Program For Homeless Veterans

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that JEROME WEAH was sentenced today in Manhattan federal court to 46 months in prison for engaging in a scheme to defraud a program of the New York City Human Resources Administration (“HRA”), which provides cash assistance to homeless veterans of the United States armed services (“Veterans”) seeking permanent housing. Another defendant, RUDEAN WEIR, was sentenced to 30 months in prison on March 30, 2023, for his participation in the scheme. The sentences were imposed by United States District Judge Denise L. Cote. U.S. Attorney Damian Williams said: “Rudean Weir and Jerome Weah stole approximately $5.4 million from a New York City program intended to benefit U.S. veterans seeking permanent housing. These sentences should send a message that individuals who abuse Government programs to enrich themselves at the expense of taxpayers will face serious consequences.” As alleged in the Complaint, Informations, and other documents in the public record, as well as statements made in public court proceedings: From at least October 2020 through at least May 2022, RUDEAN WEIR and JEROME WEAH submitted more than 340 fraudulent applications seeking cash assistance pursuant to the Enhanced One Shot Deal (“EOSD”) program administered by the HRA. The EOSD is an emergency assistance program pursuant to which HRA makes a one-time cash assistance payment to qualifying individuals. EOSD payments are often used to help individuals move out of homeless shelters and/or other temporary housing into permanent housing. EOSD payments may be used to cover certain costs associated with the move to permanent housing, including rent, moving expenses, security deposits, broker’s fees, and payments for furniture and other household items. The HRA also offers and administers services and programs for Veterans, sometimes referred to as “Veteran’s Initiatives.” In connection with these services, the HRA has a designated group responsible for receiving and reviewing EOSD requests made on behalf of homeless Veterans seeking permanent housing. Between October 2020 and May 2022, the HRA received at least 340 EOSD applications which claimed that the applicants were homeless Veterans who had entered into a lease agreement with a particular landlord (“Landlord-1”). Each of these applications (the “Landlord-1 EOSD Applications”) claimed that a particular company provided broker’s services in connection with the lease agreement (“Broker Company-1”). HRA paid approximately $5.4 million in EOSD payments and broker’s fees pursuant to the Landlord-1 EOSD Applications. The Landlord-1 EOSD Applications were fraudulent. Landlord-1 and the Veterans did not, in fact, enter into the lease agreements submitted to HRA in connection with the Landlord-1 EOSD Applications, and Broker Company-1 did not provide real estate brokerage services to either Landlord-1 and/or the Veterans. The Veterans identified in the Landlord-1 EOSD Applications were not homeless and typically did not live in New York City. The Landlord-1 EOSD Applications, therefore, contained fake documentation and information and fraudulently induced HRA into making EOSD payments. * * * In addition to the prison terms, both WEIR, 38, of Atlanta, Georgia, and WEAH, 47, of Trenton, New Jersey, were sentenced to three years of supervised release and ordered to pay restitution in the amount of $5,388,769.60. WEIR was ordered to forfeit $3,779,489.00, including his interest in two bank accounts and six real estate properties. WEAH was ordered to forfeit $2,179,922.60, including his interest in two bank accounts and one real estate property. Mr. Williams praised the outstanding investigative work of the New York City Department of Investigation. Mr. Williams also thanked the New York City Department of Social Services and the U.S. Department of Veterans Affairs, Office of Inspector General for their assistance. This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Matthew Weinberg is in charge of the prosecution.


title: Butler County man charged with distributing child porn via encrypted instant message application

component: USAO - Ohio, Southern

body_text: CINCINNATI – A criminal complaint charging David John Frahm, 62, of Trenton, Ohio, with distribution of child pornography alleges that he used an encrypted instant message application to pursue adults with access to minor children for the purposes of engaging in sexual acts and shared sexually explicit images of children. Court documents allege that Frahm used the app to gain access to chat rooms where people discussed child sexual abuse and shared photos and videos depicting child sexual abuse material. During one of those visits, Frahm allegedly shared three images with an undercover Homeland Security investigator who was in the chat room. Agents arrested Frahm on April 7. Frahm had his initial appearance before U.S. Magistrate Judge Karen L. Litkovitz on April 10 and was ordered to remain in custody pending trial. Frahm’s case was unsealed today. Distribution of child pornography is punishable by a range of five years up to 20 years in prison. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; and the Lebanon Police Department announced the charge and the arrest. Assistant United States Attorney Kyle J. Healey is representing the United States in this case. A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law. # # #


title: Brothers Charged for Stealing Millions of Dollars in COVID-19 Relief Funds

component: Criminal Division

body_text: An indictment was unsealed today charging two Florida men for fraudulently obtaining millions of dollars in COVID-19 pandemic relief loans and advances from the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program. According to court documents, from March 2020 through December 2021, Carl Charles, 43, of Miramar, and his brother, Patrick Charles, 41, of Lake Worth, together with their accomplices, submitted applications to the SBA for nearly $5 million in EIDL loans, making false statements regarding the businesses’ revenues, creation dates, and number of employees. As a result of the false and fraudulent applications, the SBA disbursed over $2.5 million in loan proceeds and advances to the defendants and others. Carl Charles is charged with four counts of wire fraud and Patrick Charles is charged with three counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office, Special Agent in Charge Mark H. Morini Jr. of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southern Field Division, and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration Office of the Inspector General (SBA-OIG) Investigations Division’s Eastern Region made the announcement. The FBI, TIGTA, and SBA-OIG are investigating the case. Trial Attorneys Ariel Glasner and Samad Pardesi of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Snider for the Southern District of Florida are prosecuting the case. In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit 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 via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Yonkers Man Sentenced To 35 Years For March 2011 Murder

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that DARNELL KIDD, a/k/a “Black,” a/k/a “Donney,” a/k/a “Donney Black,” was sentenced today to 35 years in prison for the murder of Jonathan Johnson, 21, on March 18, 2011, in White Plains, New York. On November 16, 2022, KIDD was convicted of one count of murder through the use of a firearm, following a jury trial before U.S. District Judge Nelson S. Román, who imposed today’s sentence. U.S. Attorney Damian Williams said: “This lengthy investigation is yet another example of this Office’s commitment to prosecuting those who perpetuate gun violence and rob residents of New York of their peace and safety. We will continue our all-hands-on-deck approach with our law enforcement partners to identify and punish those who commit violent and brutal gun offenses.” According to the evidence at trial and statements made in public court proceedings and filings: On March 18, 2011, DARNELL KIDD and his co-defendant MARCUS CHAMBERS murdered Jonathan Johnson by shooting him during an armed robbery for marijuana in White Plains. In advance of the robbery, CHAMBERS arranged by phone to purchase three ounces of marijuana from Johnson. Intending to instead rob Johnson, CHAMBERS and KIDD met with Johnson in or near Johnson’s car, which was parked on a suburban street in White Plains. During the course of the robbery, KIDD drew a loaded gun and fired it, killing Johnson. KIDD and CHAMBERS then fled from the scene of the murder. * * * In addition to his prison term, KIDD, 31, of Yonkers, New York, was sentenced to five years of supervised release. Mr. Williams praised the outstanding investigative work of the White Plains Police Department and the Federal Bureau of Investigation (“FBI”) Westchester Safe Streets Task Force, which comprises Special Agents and Task Force Officers from the FBI, United States Probation Office, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, New York City Police Department, Yonkers Police Department, Mount Vernon Police Department, Peekskill Police Department, Greenburgh Police Department, New Rochelle Police Department, White Plains Police Department, Clarkstown Police Department, and Ramapo Police Department. Mr. Williams also thanked the Westchester County District Attorney’s Office for its assistance in this matter. This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Olga I. Zverovich, Christopher Brumwell, and Steven J. Kochevar, with the assistance of Paralegal Specialist Shannon Becker, are in charge of the prosecution.


title: Previously Convicted Felon Pleads Guilty to Drug Trafficking and Unlawful Possession of Firearms and Ammunition

component: USAO - New Hampshire

body_text: CONCORD – A Manchester man pleaded guilty in federal court to drug trafficking and firearm offenses, U.S. Attorney Jane E. Young announces. John Rivera, 24, pleaded guilty to unlawful possession with the intent to distribute quantities of fentanyl and cocaine base, commonly known as “crack” cocaine, and being a prohibited person in possession of a firearm and ammunition. U.S. District Court Judge Joseph LaPlante scheduled sentencing for July 25, 2023. Rivera was charged on March 11, 2022. On September 16, 2021, the New Hampshire State Police, working in conjunction with the Manchester Police Department, observed a firearm under Rivera’s driver’s seat during a traffic stop. Upon searching the vehicle, officers seized 1.2 kilograms of fentanyl packaged for distribution, approximately 19.68 grams of crack cocaine, a stolen firearm, a loaded magazine, loose ammunition, drug packaging materials, and a digital scale. Rivera is prohibited from possessing firearms and ammunition based on a prior felony conviction. The charging statute provides a sentence of no greater than 20 years in prison, 3 years of supervised release, and a fine of $1,000,000. 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. The Manchester Police Department and the New Hampshire State Police led the investigation. Assistant U.S. Attorney Jennifer C. Davis is prosecuting the case. ###


title: Seven New England Fishermen Charged with Tax Evasion and Failing to File Returns

component: Tax Division

body_text: Federal grand juries in Providence, Rhode Island, and Boston returned separate indictments charging seven commercial fishermen with tax evasion and failing to file returns. According to the indictments, the commercial fishermen each worked for fishing companies operating primarily out of New Bedford, Massachusetts, or Point Judith, Rhode Island, and received substantial compensation. The companies allegedly paid the fishermen as independent contractors and documented that income by, among other things, filing Forms 1099 with the IRS that reported the funds paid to the fishermen. It is alleged that notwithstanding the receipt of this income, each fisherman did not file individual tax returns or pay all the taxes owed on that income – for some defendants, they allegedly failed to file and/or pay taxes for a decade or more. To conceal the source and disposition of their income, the fishermen allegedly cashed paychecks and then used the cash to fund their lifestyles. One of the defendants allegedly also used the name and Social Security number of another individual to conduct business as a further effort to hide income. In some instances, the fishermen allegedly filed false tax returns for certain years by either not reporting their fishing income or by reporting false business expense deductions to reduce the amount of taxes they owed. Each allegedly evaded tax on between $900,000 and $1.9 million in income. The seven fishermen indicted are: Jorge Cazarin of New Bedford, Massachusetts, was charged with five counts of tax evasion and five counts of willful failure to file tax returns for 2016 through 2020. Christopher Garraty of Newport and East Greenwich, Rhode Island, was charged with three counts of tax evasion and three counts of willful failure to file for 2016 through 2018, and a fourth count of tax evasion related to taxes he allegedly owed for 2007 through 2011. Wojciech Kaminski of West Warwick, Rhode Island, was charged with five counts of tax evasion for 2014 and 2016 through 2019 and four counts of willful failure to file tax returns for 2016 through 2019. Brian Kobus of Durham, Connecticut, was charged with five counts of tax evasion for 2017 through 2021. Rodolfo Membreno of Fall River, Massachusetts, was charged with six counts of tax evasion for 2012 and 2017 through 2021 and four counts of willful failure to file tax returns for 2017 through 2019 and 2021. John Doe of New Bedford, Massachusetts, was charged with six counts of tax evasion for 2016 through 2021 and three counts of willful failure to file tax returns for 2016 through 2018. Miguel Cruz Rubio of New Bedford, Massachusetts, and Elizabethtown, North Carolina, was charged with four counts of tax evasion for 2016 through 2019. If convicted, each defendant faces a maximum sentence of five years in prison for each evasion count and one year in prison for each failure to file a tax return charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division thanked U.S. Attorney Rachael S. Rollins for the District of Massachusetts and U.S. Attorney Zachary A. Cunha for the District of Rhode Island for their help and assistance in the investigation and prosecution of these cases. IRS-Criminal Investigation is investigating these cases. Assistant Chief John Kane and Trial Attorneys Samuel Bean, Matthew Cofer, Christina Grimes, and Ezra Spiro of the Justice Department’s Tax Division are prosecuting the cases. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Federal Court Permanently Shuts Down Detroit Tax Preparation Business

body_text: On March 13, 2022, a federal court in Detroit entered a permanent injunction against Jeanisia Saquise Allen and First Choice Tax Solutions, LLC, The Tax Experts, Inc., The Tax Experts, LLC, and Top Notch Taxes, Inc., prohibiting them from preparing federal tax returns for others and owning, operating, or franchising a tax return preparation business. Following a payment by Allen to the government pursuant to a settlement agreement, the court, with the government’s consent, today dismissed claims against Allen and her businesses seeking the disgorgement of ill-gotten gains that they received for the preparation of tax returns. In addition, in related cases also filed in the same Detroit federal court, the court previously entered permanent injunctions against Jennifer Sherman and Erica McGowan, and their respective related businesses, Sherman Management Co., LLC and America Enterprise, LLC. The government complaints in those cases alleged that Sherman and McGowan entered into agreements with Allen and her entity, The Tax Experts LLC, to use the name “The Tax Experts” to conduct business preparing tax returns. The complaints in the cases against Sherman and McGown alleged that their companies falsely claimed the Earned Income Tax Credit and education credits, fabricated business income and expenses, and claimed improper filing status for customers. A third lawsuit against Annetta Powell and Jasmine Powell, who the government also alleges entered into agreements to use the name “The Tax Experts” to conduct a tax preparation business, is ongoing in federal court in Detroit. Annetta Powell agreed to the entry of a preliminary injunction barring her and her businesses from preparing federal tax returns for others until the date on which trial on whether a permanent injunction is warranted occurs. In the case against Allen, the complaint alleges that The Tax Experts has operated as many as 32 tax preparation stores during a single year, primarily in metro-Detroit, but also in Chicago and Los Angeles. Over the course of three years (2017, 2018, and 2019), businesses operating as “The Tax Experts” allegedly prepared more than 17,000 federal tax returns claiming over $82 million in tax refunds. The complaint alleges that Allen and The Tax Experts failed to train, oversee, and control businesses that operate under an agreement to use that name. The complaint against Allen further alleges the Tax Experts prepare false or fraudulent tax returns exhibiting common and widespread false income, expenses, claims, credits, and deductions. According to the complaint against Allen, the IRS examined 716 federal tax returns prepared by The Tax Experts, resulting in a total additional tax owed to the United States of $3,552,114, or an average of $5,349.57 for each adjusted return. Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement. Shady tax return preparers remain a concern of the IRS, which recently warned taxpayers about unscrupulous tax return preparers as part of the IRS’s Dirty Dozen series . As the 2023 tax season continues, taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer , as well as steps taxpayers can take to get a jumpstart on filing . The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information. Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income ). In addition, IRS Free File , a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.


title: Podiatrist and Patient Recruiter Convicted for $8.5M Compounding Fraud Scheme

body_text: A federal jury convicted two Texas men today for their role in a scheme to fraudulently bill TRICARE – the health care program for U.S. service members and their families – for compounded creams that were medically unnecessary and procured through kickbacks and bribes. According to court documents and evidence presented at trial, Brian Carpenter, 56, of Bridgeport, was a podiatrist who signed prescriptions for compounded pain and scar creams for TRICARE beneficiaries to whom he never spoke and whom he never examined or treated. Jerry Lee Hawrylak, 69, of Lake Worth, recruited Carpenter to sign the prescriptions and recruited TRICARE beneficiaries to accept the medically unnecessary creams. From November 2014 to January 2017, Carpenter and Hawrylak caused the Fort Worth-based pharmacy involved in the conspiracy to fraudulently bill TRICARE approximately $8.5 million for these creams. Carpenter and Hawrylak were convicted of one count of conspiracy to commit health care fraud and six counts of health care fraud. They are scheduled to be sentenced on Aug. 23 and face a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Leigha Simonton for the Northern District of Texas, Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS), Special Agent in Charge Jason Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office, Special Agent in Charge Chad B. Yarbrough of the FBI Dallas Regional Office, Special Agent in Charge Steven Grell of the Department of Labor Office of Inspector General (DOL-OIG) Central Regional Office, and Special Agent in Charge Kris Raper of the Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement. The DCIS, HHS-OIG, FBI, DOL-OIG, and VA-OIG investigated the case. Acting Assistant Chief Brynn A. Schiess and Trial Attorneys Lee Hirsch and Andrea Savdie of the Criminal Division’s Fraud Section are prosecuting the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit .


title: Businessman Charged in Fraud Scheme to Conceal $38M from the IRS

body_text: A federal grand jury in Salt Lake City returned an indictment, unsealed today, charging a California businessman with conspiracy to defraud the IRS, conspiracy to commit money laundering, and money laundering. According to the indictment, from 2013 to 2020, Grigor Termendjian of Los Angeles conspired to defraud the IRS by concealing $38 million of taxable fraud proceeds, which he and others laundered through international and domestic bank accounts. The funds involved in the money laundering transactions were allegedly proceeds from a scheme orchestrated in Utah by Termendjian’s brother, Levon Termendzhyan, aka Lev Aslan Dermen; Jacob Kingston; and others. Termendjian allegedly sought with his co-conspirators to disguise control of the $38 million by engaging in financial transactions that had no legitimate business purpose. The indictment charges that they created bogus loan agreements, falsely characterized the transfer of fraud proceeds as share purchases or investments and used shell accounts to conceal and disguise the nature, location, source, ownership, and control of the money. Some of the transactions allegedly involved withdrawing funds to purchase cashier’s checks. On one occasion, Termendjian allegedly withdrew over $41 million to purchase two cashier’s checks that he held for several months outside of the U.S. financial system. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement. IRS Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division are investigating the case. Senior Litigation Counsel John E. Sullivan and Trial Attorneys Richard M. Rolwing and Erika V. Suhr of the Justice Department’s Tax Division are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Maine Man Charged in Connection with Portsmouth School Threat

body_text: CONCORD – A Maine man has been federally charged in connection with posting a video on SnapChat that threatened the Portsmouth High School on April 12, 2023, U.S. Attorney Jane E. Young announces. Kyle Hendrickson, 25, was charged with transmitting in interstate commerce a threat to injure the person of another. A press release will be issued when an initial appearance in federal court is scheduled. According to the charging documents, Hendrickson posted a video to his SnapChat account on Wednesday, April 12, 2023, in which he brandished a handgun while in a vehicle outside of the Portsmouth High School. The video includes a text overlay that reads “imma shoot up the school.” School surveillance footage placed Hendrickson’s vehicle outside the high school at the time of the video. Hendrickson was arrested yesterday on state charges. A subsequent state search warrant of the vehicle yielded an AR-15 rifle, a shotgun, camouflage body armor, a handgun holster, a red-dot sight, and numerous rounds of ammunition. Investigators recovered another shotgun inside a residence associated with Hendrickson. Finally, a handgun that resembles the one used in the SnapChat video was recovered in a motel where Hendrickson had stayed on April 12, 2023. The charge provides for a sentence of up to five 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. The Federal Bureau of Investigation, Boston Division, and the Portsmouth Police Department led the investigation. The Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Somersworth Police Department, the Portland (Maine) Police Department, and the Berwick (Maine) Police Department provided valuable assistance. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. ###


title: Florida Woman Pleads Guilty To Defrauding Holocaust Survivor Of $2.8 Million In Connection With Romance Scam

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that PEACHES STERGO pled guilty today before United States District Judge Edgardo Ramos in connection with her years-long scheme to defraud an 87-year-old Holocaust survivor of his life savings. U.S. Attorney Damian Williams said: “Peaches Stergo stole the life savings from an 87-year-old Holocaust survivor who was just looking for companionship. This conduct is sick – and sad. Using the millions in fraud proceeds, Stergo lived a life of luxury, purchasing a home in a gated community and a Corvette, taking vacations at hotels like the Ritz Carlton, and buying thousands in designer clothing, while at the same time causing her elderly victim to lose his apartment. Thanks to the hard work of the FBI and this Office, Stergo is being held accountable for her fraud.” As alleged in the Indictment: From at least in or about May 2017, up to and including at least October 2021, STERGO engaged in a scheme to defraud an 87-year-old Holocaust survivor (the “Victim”) of over $2.8 million, which was his life savings. STERGO met the Victim on a dating website approximately six or seven years ago. In or about early 2017, STERGO asked the Victim to borrow money to pay her lawyer, who she claimed was refusing to release funds from an injury settlement. After the Victim gave her the money, STERGO said the settlement funds had been deposited into her TD Bank account. In reality, bank records show STERGO never received any money from an injury settlement. Over the next four and a half years, STERGO continued her lies. She repeatedly demanded that the Victim deposit money into her bank accounts. She claimed that if he did not, her accounts would be frozen and he would never be paid back. In total, the Victim wrote 62 checks — totaling over $2.8 million — that were deposited into one of two of STERGO’s bank accounts. In furtherance of the fraud, STERGO created a fake email account, intended to appear as if it belonged to a TD Bank employee. She also created fake letters from a TD Bank employee and fake invoices. While the Victim lost his life savings and was forced to give up his apartment, STERGO lived a life of luxury with the millions she received from the fraud: she bought a home in a gated community, a condominium, a boat, and numerous cars, including a Corvette and a Suburban. During the course of the fraud, STERGO also took expensive trips, staying at places like the Ritz Carlton, and spent many tens of thousands of dollars on expensive meals, gold coins and bars, jewelry, Rolex watches, and designer clothing from stores like Tiffany, Ralph Lauren, Neiman Marcus, Louis Vuitton, and Hermes. * * * STERGO, 36, of Champions Gate, Florida, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. In connection with the guilty plea, STERGO agreed to pay $2,830,775 in restitution and to forfeit the same amount, along with over 100 luxury items she purchased with fraud proceeds, including Rolex watches, designer purses and clothing, and large amounts of gold and jewelry. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing has been scheduled for July 27, 2023, at 11:00 a.m. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.


title: Andrew Stephen Couch Sentencing To 60 Years For Production Of Child Pornography

component: USAO - Tennessee, Eastern

body_text: KNOXVILLE, Tenn. – On April 13, 2023, Andrew Stephen Couch, 37, currently of Knoxville, Tennessee, was sentenced to 720 months’ imprisonment by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville. As part of the plea agreement filed with the court, Couch agreed to plead guilty to an indictment charging him with two counts of production of child pornography in violation of 18 U.S.C. § 2251(a). After his release from imprisonment, he will be on lifetime supervised release. Couch will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release. According to the filed plea agreement, in December 2019, after receiving a report that Couch was distributing child pornography, a search warrant was conducted at Couch’s home. Couch’s cellular phone was seized and forensically examined. Located on the cellular phone were multiple videos of child pornography produced by Couch wherein he was engaged in sexually explicit acts with a four-and-a-half-year-old female who was visiting Couch’s home. Also on the cellular phone were thousands of other images and videos of child pornography of unidentified children. The criminal indictment was the result of an investigation by the Knoxville Police Department, Internet Crimes Against Children Unit and the U.S. Department of Homeland Security, Homeland Security Investigations. Assistant United States Attorney Jennifer Kolman represented the United States. This case was brought as part of Project Safe Childhood (PSC), 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc . For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.” ###


title: Silk Road Dark Web Fraud Defendant Sentenced Following Seizure And Forfeiture Of Over $3.4 Billion In Cryptocurrency

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMES ZHONG was sentenced today to one year and one day in prison for committing wire fraud in September 2012 when he unlawfully obtained approximaely 50,000 Bitcoin from the Silk Road dark web internet marketplace. United States District Judge Paul G. Gardephe imposed today’s sentence. As part of the ZHONG investigation, the Government has obtained final orders of forfeiture for, among other items, 51,680.32473733 Bitcoin, valued at over $3.4 billion at the time of seizure and over $1.57 billion today. U.S. Attorney Damian Williams said: “Back in 2012, James Zhong committed wire fraud by stealing 50,000 Bitcoin from Silk Road, and for the next 10 years, he managed to conceal what he had done and how he obtained his fortune. Zhong used a decentralized Bitcoin mixer, an overseas cryptocurrency exchange, and an impressive array of technological tools to frustrate tracing efforts. But thanks to the relentless and skillful efforts of law enforcement in following the money, the federal government uncovered Zhong’s scheme and obtained final orders of forfeiture for over 51,680 Bitcoin. Cyber-criminals should heed this message: we will follow the money and hold you accountable, no matter how sophisticated your scheme and no matter how long it takes.” According to court filings and statements made in court proceedings: ZHONG’s Scheme to Defraud Silk Road was an online “darknet” black market. In operation from approximately 2011 until 2013, Silk Road was used by numerous drug dealers and other unlawful vendors to distribute massive quantities of illegal drugs and other illicit goods and services to many buyers and to launder all funds passing through it. In 2015, following a groundbreaking prosecution by this Office, Silk Road’s founder Ross Ulbricht was convicted by a unanimous jury and sentenced to life in prison. United States v. Ulbricht , 14-cr-68 (S.D.N.Y.). In September 2012, ZHONG executed a scheme to defraud Silk Road of its money and property by (i) creating a string of approximately nine Silk Road accounts (the “Fraud Accounts”) in a manner designed to conceal his identity; (ii) triggering over 140 transactions in rapid succession in order to trick Silk Road’s withdrawal-processing system into releasing approximately 50,000 Bitcoin from its Bitcoin-based payment system into ZHONG’s accounts; and (iii) transferring this Bitcoin into a variety of separate addresses also under ZHONG’s control, all in a manner designed to prevent detection, conceal his identity and ownership, and obfuscate the Bitcoin’s source. While executing the September 2012 fraud, ZHONG did not list any item or service for sale on Silk Road, nor did he buy any item or service on Silk Road. ZHONG registered the accounts by providing the bare minimum of information required by Silk Road to create the account; the Fraud Accounts were merely a conduit for ZHONG to defraud Silk Road of Bitcoin. ZHONG funded the Fraud Accounts with an initial deposit of between 200 and 2,000 Bitcoin. After the initial deposit, ZHONG then quickly executed a series of withdrawals. Through his scheme to defraud, ZHONG was able to withdraw many times more Bitcoin out of Silk Road than he had deposited in the first instance. As an example, on September 19, 2012, ZHONG deposited 500 Bitcoin into a Silk Road wallet. Less than five seconds after making the initial deposit, ZHONG executed five withdrawals of 500 Bitcoin in rapid succession — i.e. , within the same second — resulting in a net gain of 2,000 Bitcoin. As another example, a different Fraud Account made a single deposit and over 50 Bitcoin withdrawals before the account ceased its activity. ZHONG moved this Bitcoin out of Silk Road and, in a matter of days, consolidated them into two high-value amounts. Nearly five years after ZHONG’s fraud, in August 2017, solely by virtue of ZHONG’s possession of the 50,000 Bitcoin that he unlawfully obtained from Silk Road, ZHONG received a matching amount of a related cryptocurrency — 50,000 Bitcoin Cash (“BCH Crime Proceeds”) — on top of the 50,000 Bitcoin. In August 2017, in a hard fork coin split, Bitcoin split into two cryptocurrencies, traditional Bitcoin and Bitcoin Cash (“BCH”). When this split occurred, any Bitcoin address that had a Bitcoin balance (as ZHONG’s addresses did) now had the exact same balance on both the Bitcoin blockchain and on the Bitcoin Cash blockchain. As of August 2017, ZHONG thus possessed 50,000 BCH in addition to the 50,000 Bitcoin that ZHONG unlawfully obtained from Silk Road. ZHONG thereafter exchanged through an overseas cryptocurrency exchange all of the BCH Crime Proceeds for additional Bitcoin, amounting to approximately 3,500 Bitcoin of additional crime proceeds. Collectively, by the last quarter of 2017, ZHONG thus possessed approximately 53,500 Bitcoin of total crime proceeds (the “Crime Proceeds”). The Government’s Seizure of Over 50,000 Bitcoin On November 9, 2021, pursuant to a judicially authorized premises search warrant, law enforcement agents recovered approximately 50,491.06251844 Bitcoin of crime proceeds from ZHONG’s Gainesville, Georgia, house. Law enforcement located these crime proceeds in an underground floor safe and on a single-board computer that was submerged under blankets in a popcorn tin stored in a bathroom closet. In addition, law enforcement recovered $661,900 in cash, 25 Casascius coins (physical bitcoin) with an approximate value of 174 Bitcoin, 11.1160005300044 additional Bitcoin, four one-ounce silver-colored bars, three one-ounce gold-colored bars, four 10-ounce silver-colored bars, and one gold-colored coin. Photographs of the popcorn tin, single-board computer, underground floor safe, and some of the seized items are included below: Beginning in or around March 2022, ZHONG began voluntarily surrendering to the Government additional Bitcoin that ZHONG had access to and had not dissipated. In total, ZHONG voluntarily surrendered 1,004.14621836 additional Bitcoin. Using a conservative estimate of the lowest spot price of Bitcoin on the seizure dates, the total value of all Bitcoin seized for which the Government has obtained final orders of forfeiture is approximately $3.4 billion. Forfeiture Actions On February 7, 2023, in United States v. Ross Ulbricht , S1 14 Cr. 68 (S.D.N.Y.), District Judge Lorna G. Schofield entered a final order of forfeiture as to the below property seized from ZHONG, vesting all right, title, and interest in the below property in the United States: 50,491.06251844 Bitcoin seized from ZHONG’s home on November 9, 2021; 825.38833159 Bitcoin provided by ZHONG on March 25, 2022; and 35.4470080 Bitcoin provided by ZHONG on May 25, 2022. On March 14, 2023, District Judge Gardephe entered a final order of forfeiture as to the below property, vesting all right, title, and interest in the below property in the United States: ZHONG’s 80% interest in RE&D Investments, LLC, a Memphis-based company with substantial real estate holdings; $661,900 in United States currency seized from ZHONG’s home on November 9, 2021; Metal items, consisting of four one-ounce silver-colored bars, three one-ounce gold-colored bars, four 10-ounce silver-colored bars, and one gold-colored coin, all seized from ZHONG’s home on November 9, 2021; 11.1160005300044 Bitcoin seized from ZHONG’s home on November 9, 2021; 25 Casascius coins (physical Bitcoin) with an approximate value of 174 Bitcoin, collectively, seized from ZHONG’s home on November 9, 2021; 23.7112850 Bitcoin provided by ZHONG on April 27, 2022; 115.02532155 Bitcoin provided by ZHONG on April 28, 2022; and 4.57427222 Bitcoin provided by ZHONG on June 8, 2022. * * * ZHONG, 32, of Gainesville, Georgia, and Athens, Georgia, previously pled guilty to one count of wire fraud before Judge Gardephe. Mr. Williams praised the outstanding work of the Internal Revenue Service, Criminal Investigation’s Western Cyber Crimes Unit of the Los Angeles Field Office. Mr. Williams also thanked the Athens-Clarke County Police Department in Athens, Georgia, for its support and assistance with the case. The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney David R. Felton is in charge of the case.


title: San Juan Man Indicted and Arrested for Coercion and Enticement of a Minor

component: USAO - Puerto Rico

body_text: SAN JUAN, Puerto Rico – A federal grand jury returned an indictment charging Samuel Vega-Rodríguez, 42, of San Juan, Puerto Rico, with coercion and enticement of a minor and attempted production of child pornography, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The arrest follows an investigation by Homeland Security Investigations (HSI) with the assistance of the Puerto Rico Police Bureau (PRPB) and the U.S. Attorney’s Office for the District of Puerto Rico. According to the indictment, from May to September 2022, Samuel Vega-Rodríguez knowingly persuaded, induced, enticed, and coerced a 13-year-old female minor to engage in sexual activity. The man was arrested at his residence without incident on April 6. According to court documents, the defendant began conversations via social media with the minor victim. In said conversations, the defendants talked about sex and asked for naked photos and videos of the minor victim. In May 2022, the defendant and the minor agreed to meet for a sexual encounter. When the minor victim saw Vega-Hernández and realized that the defendant was older than the male depicted in his social media accounts, the female minor left the meeting point running, after she punched him and kicked him when he attempted to stop her from leaving. “We want to remind the community that the U.S. Attorney’s Office along with our federal, state and local partners, are committed to protecting children from these types of criminals,” said U.S. Attorney Muldrow. “If you are a victim or know of another victim of this individual, please come forward; contact the authorities so we can protect you and others from these crimes.” “The Puerto Rico Crimes Against Children Task Force, led by HSI brings together local, state and federal law enforcement agencies with the common goal of investigating and arresting individuals that prey on our children,” said Rebecca C. González, Acting Special Agent in Charge of HSI San Juan. Today, Vega-Rodríguez had his arraignment and bail hearing before U.S. Magistrate Judge Giselle López-Soler and was ordered to remain at the Guaynabo Metropolitan Detention Center awaiting the outcome of his case. If convicted, Vega-Rodríguez faces a mandatory minimum penalty of 10 years up to life for the coercion and enticement charge, and a minimum of 15 years up to 30 years in prison for the production of child exploitation material charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant United States Attorney Daynelle Álvarez-Lora, of the Child Exploitation and Immigration Unit, is in charge of the prosecution of this case. HSI is the principal investigative arm of DHS and a vital U.S. asset in combatting transnational crimes and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse and help make the internet a safer place for children. For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Four Men Charged with Possessing Machineguns  in Furtherance of Drug Trafficking

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

body_text: Indictment Alleges the Assembly and Use of Fully Automatic “Ghost Guns” WASHINGTON – Four men were arraigned this morning on federal charges, including conspiracy to distribution of marijuana and oxycodone, unlawful transfer and possession of a machinegun, and using, carrying, and possessing machineguns during, in relation to, or in furtherance of drug trafficking. The charges were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office Criminal and Cyber Division, Acting Special Agent in Charge Michael T. Weddel of the ATF Washington Field Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department (“MPD”). The indictment alleges that Eugene Tracy Hill, also known as “Geno” or “Cheese,” Diante Arik Wiley, also known as “Sleez” or “Taybino,” Broadus Jamal Daniels, also known as “Wardy,” and Andre Alonte Willis, also known as “Boogie,” were engaged in a years-long conspiracy to distribute marijuana and oxycodone. It is further alleged that Hill and Willis distributed, possessed with the intent to distribute, or conspired to distribute more than 100 kilograms of marijuana. The indictment further alleges that, in furtherance of their drug trafficking conspiracy, and in order to protect the co-conspirators and their drugs, money, and drug-dealing territory, Wiley assembled AR-Pistol machineguns from parts that he bought through online retailers and sold those machineguns to Hill, Daniels, Willis, and others. Since the AR-Pistols that Wiley built were assembled from parts, they had no serial numbers and there was no way for law enforcement to track their possession or sale. Such firearms are defined as “Privately Made Firearm” by ATF but are also referred to as “ghost guns” on the street. The indictment alleges that Hill, Wiley, Daniels, and Willis used the machineguns for defense of their territory, and also as currency to trade for drugs or other firearms. All four men have been detained since their arrest, and law enforcement seized controlled substances and firearms from each of their residences after they were taken into custody. If convicted of all charges, each defendant faces a minimum of 30 years in prison. This indictment is part of a joint investigation which has resulted in the seizure of two vehicles, 13 handguns, five machineguns, and hundreds of rounds of ammunition, as well as almost 40 pounds of marijuana, dozens of oxycodone pills, and more than $300,000 in cash. In announcing the charges, U.S. Attorney Graves, Special Agent in Charge Jacobs, Acting Special Agent in Charge Weddel, and Chief Contee commended the work of those who investigated the case, including FBI, ATF, and MPD. Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney James B. Nelson and Paralegal Specialist Genevieve de Guzman. The charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.


title: Construction Firm Owner Sentenced for Employment Tax Evasion

body_text: An Iowa man was sentenced today to two years in prison for evading payment of employment taxes owed by his company. According to court documents and statements made in court, Kevin Alexander of Sioux City owned K&L Construction, Inc. (K&L), a landscaping and construction company. Alexander was responsible for filing quarterly employment tax returns and collecting and paying to the IRS taxes withheld from employees’ wages. Between 2014 and 2017, K&L paid approximately $3.8 million in wages to its employees, of which approximately $1 million in income and Social Security and Medicare taxes was withheld. Alexander did not pay those withholdings over to the IRS. When the IRS attempted to collect K&L’s unpaid employment taxes, Alexander sought to conceal his income by submitting a form to the IRS concealing the full amount of K&L’s available assets. In addition to the term of imprisonment, U.S. District Chief Judge Leonard T. Strand ordered Alexander to serve two years of supervised release and to pay approximately $1.7 million in restitution to the United States. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Timothy T. Duax for the Northern District of Iowa made the announcement. IRS Criminal Investigation investigated the case. Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Ron Timmons for the Northern District of Iowa prosecuted the case.


title: Quincy Man Sentenced to 12 Years for Child Pornography Offense

component: USAO - Washington, Eastern

body_text: Spokane – On April 12, 2023, U.S. District Judge Thomas O. Rice sentenced Sergio Bonilla Henriquez, 24, of Quincy, Washington, to 144 months in federal prison for Receipt of Child Pornography. Defendant pleaded guilty on January 11, 2023. Judge Rice also ordered Henriquez to pay $48,000 in restitution to his victims and be federally supervised for life after Henriquez is released from prison. According to court documents and proceedings, Henriquez was identified as a child exploitation suspect after he used various names to engage in several online chat groups dedicated to the trading of child pornography. Within the chat groups, Henriquez distributed and received child pornography files depicting minors of all ages and engaged in explicit discussions detailing his sexual interest in minors and encouraging the sex abuse of minors by others. After a federal search warrant was executed at Henriquez’s residence, forensic review of his phone revealed more than 26,000 images and videos of child pornography. Court documents further reveal that, after being granted pretrial release from custody, Henriquez uploaded child pornography to outgoing communications in Snapchat, which led to the execution of another federal search warrant at Henriquez’s residence. Investigators found minors living in the residence and Henriquez in possession of firearms, which were violations of his release conditions. They also discovered additional evidence of child pornography on Defendant’s electronic devices. “The significant sentence imposed in this case recognizes the ongoing and lasting harm caused by child exploitation. It also sends a strong message to Mr. Henriquez and others who use what they believe to be online anonymity to exploit the most vulnerable among us,” said United States Attorney Vanessa R. Waldref. “I commend the collaborative, hand-in-glove investigation and prosecution of this case by the child exploitation agents at Homeland Security Investigations and AUSA Ann Wick, who is one of the most experienced and thoughtful child exploitation prosecutors in the District.” “Child predators like Mr. Henriquez cannot be allowed to engage in these kinds of depraved acts, whether in person or online,” said Steven Schrank, Deputy Special Agent in Charge of HSI operations in the Pacific Northwest. “Child exploitation cases can be among the most heart-wrenching in all of law enforcement, but this investigation shows our commitment to finding justice for underage victims and their families.” This case was investigated by Homeland Security Investigations, with the assistance of the Grant County Sheriff’s Office, and prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington. 2:20-CR-100-TOR


title: Zohannon Gang Member Sentenced to Prison for Illegally Possessing Firearms in Columbus

component: Federal Bureau of Investigation (FBI)

body_text: COLUMBUS, Ga. – A confirmed member of the Columbus-based Zohannon criminal street gang who is also a convicted felon was sentenced to serve federal prison time this week for illegally possessing two semiautomatic weapons, one was stolen and the other had two loaded magazines attached with a brass catcher—a device designed to capture spent bullets. Bernard Shaw, 23, of Columbus, was sentenced to serve 60 months in prison to be followed by three years of supervised release by U.S. District Clay Land on April 13 after he pleaded guilty to two counts of possession of a firearm by a convicted felon on Dec. 7, 2022. There is no parole in the federal system. “Armed repeat criminals caught with guns in Columbus are facing federal prosecution—where the penalties include prison time without parole,” said U.S. Attorney Peter D. Leary. “The U.S. Attorney’s Office is acutely aware of the pressing violent crime problems plaguing the Columbus community; alongside our law enforcement partners, we are tirelessly working to prevent more shooting deaths and reduce violent crime.” “Despite prior felony convictions, Shaw continued his criminal lifestyle” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentence sends the message that the FBI and our law enforcement partners are determined to make our streets safer by removing violent felons and holding them accountable with prison terms and no opportunity for parole.” According to court documents, on April 24, 2022, Columbus Police Department (CPD) officers were on uniform patrol when they observed a vehicle traveling on Dawson St. in Columbus with multiple traffic violations. The driver, Tyquerrius Ford, did not immediately stop and when he did, he did not have a license and attempted to walk away from the officers and was detained. Shaw, who was a passenger, leaned against the door to prevent the officer from accessing the vehicle, then got out of the car and fled the scene. Officers found a loaded Glock Model 17 pistol with an extended 31-round magazine in the driver’s seat. The firearm had been illegally modified with an automatic selector switch, allowing the operator of the firearm to continuously fire bullets with one pull of the trigger. In the passenger seat of the vehicle, there was a green bookbag containing a stolen Springfield XD semiautomatic pistol belonging to Shaw. Officers also found bags of marijuana, a scale and 100 small baggies. On July 22, 2022, Muscogee County Sheriff’s Office (MCSO) deputies and FBI agents located Shaw seated inside a car in the parking lot of the AutoZone on Buena Vista Road in Columbus. He was quickly detained; officers found a loaded Del-Ton 5.56 semiautomatic rifle with two 30-round magazines taped together containing a total of 37 rounds in both magazines belonging to Shaw. Additionally, a brass catcher was mounted on the firearm. Shaw was arrested and his cell phone and rifle were seized. Shaw has prior convictions in Jefferson County Circuit Court, Louisville, Kentucky, to include theft by taking and fleeing police. Shaw is also a confirmed member of Zohannon, a Columbus-based criminal street gang. It is illegal for a convicted felon to possess a firearm. The case was investigated by FBI, CPD and MCSO. Assistant U.S. Attorney Christopher Williams is prosecuting the case for the government.


title: 2 Central Ohio men charged with armed robbery of mail carrier

body_text: COLUMBUS, Ohio – Two local men were arrested by federal agents on allegations they robbed a mail carrier at gunpoint 10 days ago. Mahad S. Jama, 21, of Westerville, and Da’mon D. May, 18, of Columbus, appeared in federal court today at 1:30pm before U.S. Magistrate Judge Kimberly A. Jolson. According to the criminal complaints, on April 4 at 3:20pm, Jama and May robbed at gunpoint a USPS letter carrier who was sitting in his work vehicle on Sawmill Road in Dublin. “We continue to investigate a network of individuals involved in robbing or stealing U.S. Postal Service keys for the purposes of accessing mail collection boxes to steal checks,” said U.S. Attorney Kenneth L. Parker. “As today’s charges show, our law enforcement agencies will work swiftly to identify those allegedly involved in this brazen conduct. We will not tolerate violence in any form, including against Postal workers who are simply trying to fulfill such an important role in serving the community.” Jama allegedly approached the USPS vehicle, brandished a handgun that May provided him, and demanded the carrier’s U.S. Postal Service key. Postal Inspectors executed searches at Jama’s and May’s residences yesterday. May was in possession of a firearm and the USPS key. Jama was found to have checks in names other than his own both on his person and in his home. Aggravated robbery of a Postal employee is a federal crime punishable by up to 25 years in prison. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Lesley C. Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; announced the charges. Assistant United States Attorney Noah R. Litton is representing the United States in this case. A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law. # # #


title: Leader Of Hillsborough Drug Trafficking Organization And His Wife Sentenced To Federal Prison For Conspiracy And Distribution Of Heroin And Fentanyl

component: USAO - Florida, Middle

body_text: Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced William Franqui (37, Tampa) to 14 years in federal prison for conspiracy to distribute heroin and fentanyl. Franqui’s wife, Marie Rodriguez (41, Tampa), was sentenced to 3 years and 4 months in federal prison for distribution of heroin and fentanyl. Franqui and Rodriguez had both pleaded guilty on May 31, 2022. According to court documents, beginning no later than September 1, 2017, and continuing through August 27, 2020, Franqui and others, including his wife and codefendants Kevin Darnell Diaz Tirado, Edgardo Colon Rosado, and Orlando Muniz Escalera, conspired to distribute heroin and fentanyl in in the Middle District of Florida. Franqui, who was the leader of his drug trafficking organization, used “runners” to field calls from customers and fulfill orders. The runners distributed the heroin to users in plastic baggies for $10 per bag. Well over a kilogram of heroin was distributed through the runner network alone. Franqui also distributed larger quantities of heroin and fentanyl to other drug dealers. On three occasions between June 17 and August 14, 2020, Franqui and Rodriguez arranged transactions and sold heroin to a confidential source (CS). Franqui and Rodriguez provided the CS with more than 83 grams of heroin. In one of the distributions, fentanyl was mixed with the heroin. Kevin Darnell Diaz Tirado, Edgardo Colon Rosado, and Orlando Muniz Escalera, who were all part of Franqui’s runner network, pleaded guilty to the conspiracy and were sentenced in previous hearings. Diaz Tirado was sentenced to five years’ imprisonment, Muniz Escalera was sentenced to 10 years in federal prison, and Colon Rosado was sentenced to six years and six months in federal prison. This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations (HSI), the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Michael Sinacore. This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF .


title: Brevard County Man Sentenced To 15 Years In Federal Prison For Drug Offense

body_text: Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Anthony David Keels (61, Titusville) to 15 years in federal prison. In December 2022, Keels had pleaded guilty to conspiracy to possess with the intent to distribute fentanyl and methamphetamine, as well as using a minor to distribute methamphetamine. According to evidence admitted at sentencing, Keels had an extensive criminal history involving more than 20 felony and 10 misdemeanor convictions. From March through September 2022, during undercover drug buys and pursuant to a search warrant at Keel’s home. law enforcement recovered more than 200 grams of a fentanyl analogue, approximately 190 grams of fentanyl, approximately 25 grams of methamphetamine, 3.5 grams of cocaine, and .5 grams of crack cocaine. In addition, during this conspiracy, Keels enlisted the assistance of at least three others, one of which was a 14-year-old child, to distribute methamphetamine. Brevard County Sheriff Wayne Ivey stated, "I applaud this partnership and the agencies involved who brought this dangerous drug dealer to justice. Through their outstanding efforts, an individual who actively participated in the distribution of a powerful drug responsible for the majority of our overdose deaths has been removed from our communities.” “Illicit fentanyl is the primary driver of the drug overdose and poisoning deaths currently devastating our communities. DEA remains committed to holding anyone who chooses to bring this poison into our communities accountable for their actions, particularly those who endanger children for their own profit,” said Deanne Reuter, Special Agent in Charge of the DEA Miami Field Division. “This investigation highlights our dedication and our commitment to working with our local law enforcement partners to keep our communities safe and healthy.” This case was investigated by the Brevard County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shawn P. Napier.


title: Arkansas Man Charged With Flying to Albany in Attempt to Meet 11-Year-Old for Sex

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Kyle Biswell, age 37, of Fayetteville, Arkansas, was charged this week with one count of interstate travel for illicit sexual conduct. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. According to a federal complaint filed earlier this week, earlier this year Biswell engaged in a series of online conversations with a person in Albany whom he believed would allow him to engage in sexual contact with an 11-year old relative. On April 8, 2023, Biswell flew from Arkansas to Albany to engage in sexual contact with the minor, packing numerous Viagra pills in his suitcase. He was arrested at the airport, and later admitted he flew to Albany with the intent to engage in sexual contact with a minor. Biswell was detained pending a detention hearing later this week. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty. If convicted of the charge, Biswell faces up to 30 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department and the New York State Police. Assistant United States Attorney Benjamin S. Clark is prosecuting the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Mobile Man Sentenced to 20 Years in Prison for Drug and Firearm Offenses

component: USAO - Alabama, Southern

body_text: MOBILE, AL – A Mobile, Alabama man has been sentenced to 20 years in prison for being a felon in possession of a firearm and for possession of methamphetamine with intent to distribute. According to court documents, in March 2021, Joseph Gray unlawfully possessed a firearm after being previously convicted of three robbery offenses. In a separate offense, committed in April 2021, Gray attempted to deliver methamphetamine, other drugs, and various items of contraband to Fountain Correctional Facility in Atmore, Alabama. Gray entered guilty pleas to both offenses and received concurrent 20 year sentences for both offenses. Once released, Gray will serve an eight-year term of supervised release. U.S. Attorney Sean Costello of the Southern District of Alabama and the Department of Homeland Security Investigations made the announcement. Department of Homeland Security Investigations, the Mobile Police Department, and the Alabama Department of Corrections investigated the cases. Assistant U.S. Attorneys Beth Stepan, Kacey Chappelear, and Scott Gray prosecuted the case on behalf of the United States.