title: Three High-Ranking MS-13 Leaders Arrested on Terrorism and Racketeering Charges

component: National Security Division (NSD)

body_text: WASHINGTON – A four-count indictment was unsealed today in federal court in Central Islip, a charging 13 of the highest-ranking MS-13 leaders in the world with directing the transnational criminal organization’s criminal activities in the United States, El Salvador, Mexico, and elsewhere, over the past two decades. Specifically, the defendants are charged with racketeering conspiracy, conspiracy to provide or conceal material support to terrorists, and narco-terrorism Conspiracy. Four of the defendants are indicted for Alien Smuggling Conspiracy. On Feb. 22, Vladimir Antonio Arevalo-Chavez, aka Vampiro de Monserrat Criminales (Arevalo-Chavez), Walter Yovani Hernandez-Rivera, aka Baxter de Park View and Bastard de Park View (Hernandez-Rivera), and Marlon Antonio Menjivar-Portillo, aka Rojo de Park View (Menjivar-Portillo), were located by Mexican authorities and expelled from Mexico via the United States. When Arevalo-Chavez, Hernandez-Rivera, and Menjivar-Portillo arrived at George Bush Intercontinental Airport in Houston, they were placed under arrest by the FBI and Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Earlier today, the defendants had their initial appearances in the Southern District of Texas, pending removal to the Eastern District of New York.. Four co-defendants, Jose Wilfredo Ayala-Alcantara, aka Indio de Hollywood, Jorge Alexander De La Cruz, aka Cruger de Peatonales, Juan Antonio Martinez-Abrego, aka Mary Jane de Hollywood, and Francisco Javier Roman-Bardales, also known as Veterano de Tribus, remain at large. “Today’s action makes clear that there is no hiding place, anywhere in the world, for the leaders of violent gangs that terrorize American communities,” said Attorney General Merrick B. Garland. “The Justice Department will continue to use the full force of our law enforcement authorities to disrupt and dismantle MS-13 and other transnational criminal organizations and hold their leaders accountable.” “The FBI will continue to vigorously investigate and hold transnational organized groups like MS-13 and their leaders accountable for the continued violent and terrorist criminal activities they orchestrate,” said FBI Director Christopher Wray. “Today’s indictment demonstrates the FBI’s reach and commitment to seeking justice against those individuals who jeopardize American lives and liberty. We will never stop working in coordination with our international partners to protect our respective citizens from MS-13 and other gangs wherever they are.” “The relentless and heroic efforts of law enforcement here and in Central America are systemically dismantling the MS-13 the very top to bottom, and we will not stop until this transnational gang and it’s leaders are held accountable for the extreme violence they have inflicted on our district, the United States and the countries where this scourge is based,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As a member of Joint Task Force Vulcan, U.S. Immigration and Customs Enforcements’ Homeland Security Investigations is committed to protecting national security and the communities we serve against transnational criminal organizations,” said Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson of U.S. Immigration and Customs Enforcement. “With our broad legal authorities and ability to investigate a wide spectrum of crimes, our HSI special agents will continue to maximize global efforts that detect, deter, disrupt, and dismantle criminal syndicates, like MS-13, and those who propagate associated illicit operations.” Members of the public with information concerning their whereabouts are strongly encouraged to contact the FBI’s toll-free MS-13 tip line, 1-866-STP-MS13 (1-866-787-6713), or HSI’s at (866) 347-2423 or https://www.ice.gov/webform/ice-tip-form . Together, FBI and HSI have offered a $20,000 reward for information leading to the arrest and conviction of the four fugitives. Six other co-defendants, Edwin Ernesto Cedillos-Rodriguez, aka Renuente de Abriles Dangers, Carlos Tiberio Ramirez-Valladares, aka Snayder de Pasadena, Dany Fredy Ramos-Mejia, aka Cisco de Teclas, Dany Balmore Romero-Garcia, aka Big Boy de Normandies, Dig Boy de Normandies, and D Boy de Normandies, Ruben Antonio Rosa-Lovo, aka Chivo de Centrales, and Miguel Angel Serrano-Medina, aka Cabro de Park View,”are believed to be in custody in El Salvador. The United States will explore options for their extradition with the government of El Salvador. As set forth in court filings, the 13 defendants are part of MS-13’s command and control structure, consisting of the Ranfla Nacional , Ranfla en Las Calles , and Ranfla en Los Penales , and play significant leadership roles in the organization’s operations in El Salvador, Mexico, the United States, and throughout the world. In the related case of United States v. Henriquez, et al., a grand jury in the Eastern District of New York previously indicted 14 members of the Ranfla Nacional , who functioned as MS-13’s “Board of Directors.” Formal extradition packages were submitted by the United States for 12 of those defendants, who either are or were in El Salvador custody, remain pending. As further alleged, the defendants have engaged in a litany of violent terrorist activities aimed at influencing the government of El Salvador (GOES) policy and to obtain benefits and concessions from the GOES; targeting GOES law enforcement and military officials; employing terrorist tactics such as the use of Improvised Explosive Devices (“IEDs”) and grenades; operating military-style training camps for firearms and explosives; using public displays of violence to intimidate civilian populations; using violence to obtain and control territory; and manipulating the electoral process in El Salvador. Several of these defendants have played prominent roles in MS-13’s past and current negotiations with the GOES. Further, these defendants authorized and directed violence in the United States, Mexico, and elsewhere as part of a concerted effort to expand MS-13’s influence and territorial control. As the leaders of the MS-13 transnational criminal organization, these defendants were an integral part of the leadership chain responsible for supervising MS-13 cliques in the United States that engaged in extreme violence, including countless murders, attempted murders, assaults, and related offenses. For example, the U.S. Attorney’s Office for the Eastern District of New York’s (EDNY) has prosecuted hundreds of MS-13 leaders, members and associates for carrying out with more than 65 murders in the Eastern District of New York between 2009 and the present. Several of these defendants, including Arevalo-Chavez, Hernandez-Rivera, and Menjivar-Portillo, coordinated MS-13’s expansion into Mexico (the Mexico Program), at the direction of the Ranfla Nacional , which was a coordinated effort to maintain MS-13’s continuity of operations in response to law enforcement pressure previously exerted by the United States and GOES. Additionally, the Mexico Program included forging alliances with Mexican cartels and engaged in narcotics trafficking, immigrant smuggling and extortion, kidnappings, and weapons trafficking. As alleged in the indictment, the MS-13’s Mexico Program murdered some migrants bound for the United States, including suspected members of the rival 18th Street gang and MS-13 members attempting to flee MS-13 in El Salvador without permission. Finally, drug trafficking was an important part of MS-13’s money-making operation, especially in Mexico, and the defendants used MS-13’s large membership in the United States generate financial support for MS-13’s terrorist activities in El Salvador. Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras, and Guatemala; designating priority MS-13 programs, cliques, and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments in U.S. Attorney’s Offices across the country, including the first use of national security charges against MS-13 leaders. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including the EDNY; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of New York; the Eastern District of Virginia; the Southern District of Florida; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. In addition, all Department of Justice law enforcement agencies are involved in the effort, including the FBI; the DEA; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI also plays a critical role in JTFV. The FBI Salt Lake City, Sacramento, Los Angeles, Newark and Houston Field Offices investigated the case, with critical support provided by the FBI Criminal Investigative Division’s Safe Streets Gang Unit and HSI’s National Gangs and Violent Crime Unit, who spearheaded this investigation. Additionally, FBI Mexico, HSI Mexico, and the U.S. Customs and Border Protection Officers and Area Port Director Shawn Polley at the George Bush Intercontinental Airport in Houston provided critical support in connection with the arrests. Assistant U.S. Attorneys Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell for Eastern District of New York, and U.S. Attorneys James Donnelly, Matthew Shepherd and Stewart Young for JTFV prosecuted the case.


title: Raleigh County Man Sentenced to 30 Years in Prison for Child Pornography Crime

component: USAO - West Virginia, Southern

body_text: BECKLEY, W.Va. – Thomas John Mills, 37, of Beckley, was sentenced today to 30 years in prison, to be followed by a lifetime of supervised release, for production of child pornography. Following his release from prison, Mills must register as a sex offender. According to court documents and statements made in court, Mills admitted to coercing a 15-year-old minor female to engage in sexually explicit conduct, including masturbation and the lascivious exhibition of her genitals, between March and October 2020 for the purpose of creating images and videos of this conduct. Mills had the minor take pictures and videos to send to him and also had her participate in live video chats where he told her to engage in sexually explicit conduct. The court described the case as “one of the worst set of circumstances” it has seen. United States Attorney Will Thompson made the announcement and commended the investigative work of the Raleigh County Sheriff’s Office and the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force. United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case. These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-96. ###


title: Kanawha County Man Pleads Guilty to Methamphetamine Conspiracy

body_text: CHARLESTON, W.Va. – Justin Allen Bowen, 40, of Charleston, pleaded guilty today to conspiracy to distribute 50 grams or more of methamphetamine. According to court documents and statements made in court, Bowen received methamphetamine from his supplier for several months prior to December 5, 2022. Bowen would receive several pounds of methamphetamine at a time and distribute it to several of his customers throughout Kanawha County. On December 5, 2023, law enforcement officers executed search warrants at locations where Bowen had delivered methamphetamine the night before and seized a total of approximately 15 pounds of methamphetamine found in three locations. Bowen is scheduled to be sentenced on June 8, 2023, and faces a faces a mandatory minimum of 10 years and up to life in prison, five years and up to a lifetime of supervised release, and a $10 million fine. Jasper Wemh, Richard Allen Bowen, McKenzie Bowen, Kimberly Dawn Legg, Larry Wayne Legg, Nicholas Bradford Confere, and Stanley Aaron Burkes were indicted along with Justin Allen Bowen and are scheduled for trial on April 25, 2023. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), Metropolitan Drug Enforcement Network Team (MDENT), Charleston Police Department, West Virginia State Police, Drug Enforcement Administration (DEA), and Kanawha County Sheriff’s Office. Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorneys Jeremy B. Wolfe and Nowles Heinrich are prosecuting the case. The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-4. ###


title: Delaware Woman Sentenced to 9 years in Federal Prison for Laundering Drug Proceeds over the Course of Eight Years

component: USAO - Delaware

body_text: WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that today Circuit Judge Stephanos Bibas, of the United States Court of Appeals for the Third Circuit, sitting by designation in the District of Delaware, sentenced Shakira Martinez to 9 years’ incarceration for money laundering, conspiracy to commit money laundering, and structuring bank transactions following a jury verdict in July of 2022. Martinez was convicted together with her husband, Omar Colon, who was previously sentenced to 45 years’ incarceration for money laundering and drug crimes. Colon was referred to in Court as one of the biggest cocaine traffickers in Delaware history. According to court records and statements made in open court, between 2009 and 2017, Martinez and Colon laundered nearly a million dollars in drug proceeds through the purchase of real estate properties in Delaware and Pennsylvania using their company, Zemi Property Management. They deposited drug money into several different bank accounts – and asked their friends and family members to do the same – and then used those funds to buy cashier’s checks that funded the property purchases. As the government noted at the sentencing hearing, the success of Colon’s drug empire would not have been possible without Martinez’s money laundering and structuring crimes. Colon was arrested on May 6, 2017, shortly after giving his cocaine supplier $382,045 in cash in a hotel parking lot in Newark, Delaware. The Drug Enforcement Administration (“DEA”) subsequently discovered a secret underground bunker beneath Colon and Martinez’s residence, accessed by a tunnel behind a false fireplace, in which Colon hid a marijuana grow operation. Before imposing sentence, Circuit Judge Bibas noted the seriousness of Martinez’s crimes, and said that money laundering is a “huge issue that fuels the drug trade with all its harms.” He further noted that the Court “needs to send a message that money laundering is a serious crime.” U.S. Attorney Weiss commented on the case: “Ms. Martinez has received a serious sentence consistent with her central role in Colon’s drug empire. As Circuit Judge Bibas acknowledged in his remarks, drug trafficking wreaks havoc on the community and on families. Mr. Colon imported massive amounts of cocaine into Delaware for many years. The only way for Mr. Colon and Ms. Martinez to reap the fruits of Colon’s drug crimes and amass a real estate empire was through their money laundering scheme.” “Martinez’s money laundering and structuring activities were the fuel that allowed her husband Colon to continue to purchase cocaine in furtherance of his drug-trafficking activities,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “We applaud the sentence that Judge Bibas’ imposed on Martinez and his declaration of money laundering as the serious crime that it is.” Special Agent in Charge Yury Kruty said “IRS Criminal Investigation special agents are uniquely qualified to follow complex financial transactions and uncover the source of the illegal funds. Martinez and Colon employed multiple tactics to clean up their ill-gotten gains, but in the end, they could not outsmart the government. The sentence handed down today is a stark reminder of the fate of those who engage in money laundering schemes.” Assistant U.S. Attorneys Jennifer K. Welsh and Meredith C. Ruggles prosecuted the case. This case was investigated by the DEA Philadelphia Division and the Internal Revenue Service, Criminal Investigations. A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:17-cr-00047-LPS.


title: Fraudulent Firearm Purchases Lead To Federal Prison Sentences For Two Flint Men

component: USAO - Michigan, Western

body_text: GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten today announced that Jonathan-Michael Brown, of Flint, Michigan was sentenced to serve 120 months in prison for illegally purchasing 62 firearms from federally licensed firearms dealers in Michigan and Ohio. U.S. District Court Judge Jane M. Beckering also imposed a restitution order of $28,047.88 for losses to the firearms dealers and two years of supervised release following his term of incarceration. Co-defendant Jalen Kenyatta Malik Jackson, also of Flint, was sentenced in January to 12 months and one day imprisonment, two years of supervised release, and restitution of $12,004.27. In imposing the sentence against Brown, Judge Beckering commented that Brown’s “spree of firearms purchases” through the fraud scheme “victimized many people.” “Protecting our communities by holding individuals accountable for straw purchasing weapons and fraudulently acquiring firearms that flood our streets with illegal guns is a top priority for my office,” said U.S. Attorney Mark Totten. “We will continue working with the ATF and our law enforcement partners to target these types of schemes that put our communities at risk.” According to court documents, Brown, age 24, and Jackson, age 25, illegally purchased 62 firearms (and attempted to purchase 19 additional firearms) from federally licensed firearms dealers using multiple fraudulent methods. Brown had previously been convicted of a felony offense and could not lawfully possess any firearms. Brown acquired firearms by posing as another person and using the driver’s license and credit card account number assigned to that person and others to purchase the weapons for resale. After Brown’s arrest by state authorities, he recruited Jackson to make false statements to gun dealers and acquire multiple firearms using credit card numbers assigned to other people to purchase those weapons to resell to others. As a result, the cost of the guns was passed on to others and Brown and Jackson transferred the firearms to others for profit. Brown pleaded guilty to three federal crimes: making a false statement and aggravated identity theft in connection with the purchase of two firearms, and conspiracy to commit wire fraud for profiting from selling firearms that he and Jackson illegally purchased from firearms dealers. Jackson pleaded guilty to one count of making a false statement during the purchase of firearms. “Illegally providing firearms to prohibited persons fuels violent criminals presenting a grave threat to our communities,” said, ATF Acting SAC Craig Kailimai . “The collaborative effort with the U.S. Attorney’s Office, our federal, State of Michigan, and local partners continues to remove illegally trafficked firearms and those individuals involved from our streets.” This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Michigan State Police, Flint Police Department, Saginaw Township Police Department, and Canton Police Department also aided in the investigation. Assistant U.S. Attorney Clay M. West prosecuted the case. ###


title: Omaha Man Sentenced to 180 Months for Firearms and Methamphetamine Charges

component: USAO - Nebraska

body_text: United States Attorney Steven A. Russell announced that Raymond McGaugh, 31, of Omaha, Nebraska, was sentenced in federal court in Omaha on February 22, 2023, for Possession with Intent to Distribute Methamphetamine and Possession of Firearms in Furtherance of Drug Trafficking. United States District Brian C. Buescher sentenced McGaugh to 180 months’ imprisonment. There is no parole in the federal system. He was also ordered to serve five years of supervised release after his release from prison. On June 27, 2021, law enforcement initiated a traffic stop on a black Dodge Charger for failing to have license plates. McGaugh was the driver and sole occupant of the vehicle. Officers smelled marijuana emanating from the vehicle and searched the vehicle. Officers located a backpack on the passenger seat that contained 365 grams of actual methamphetamine along with two loaded handguns. One of the firearms was reported stolen. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Omaha Police Department.


title: Man Arrested for Cold Case Murder on Military Base in Germany

component: USAO - Florida, Northern

body_text: A man was arrested today in the Northern District of Florida on criminal charges related to a murder on a U.S. Army base in Germany 21 years ago. According to court documents, Shannon L. Wilkerson, 42, is allegedly responsible for the death of Amanda Gonzales on Nov. 3, 2001. The murder occurred at Fliegerhorst Kaserne, then a U.S. Army base in Hanau, Germany. Wilkerson was a member of the Armed Forces at the time of the alleged offense but was later discharged from the Army. Wilkerson is charged under the Military Extraterritorial Jurisdiction Act, which gives the U.S. federal courts jurisdiction over crimes committed outside the United States by, among others, former members of the Armed Forces who are no longer subject to the Uniform Code of Military Justice. Wilkerson is charged with one count of first-degree murder. If convicted, he faces a maximum penalty of life in prison. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jason R. Coody for the Northern District of Florida, Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office, and Special Agent in Charge Lisa Yockel of the U.S. Army Criminal Investigation Division’s Europe Field Office made the announcement. The FBI is investigating the case. The FBI Jacksonville Field Office, the Air Force’s Office of Special Investigations, and Army’s Criminal Investigative Division, which originally investigated the case, provided valuable assistance with the arrest. Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney David L. Goldberg for the Northern District of Florida 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: Convicted Sex Offender Sentenced to 46 months for Illegal Firearm Possession

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

body_text: BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon for illegal firearm possession, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson. U.S. District Court Judge Liles C. Burke sentenced Edward Olin Jones , 66, of Hanceville to 46 months in prison followed by three years of supervised release. Jones pleaded guilty to the charge of being a felon in possession of a firearm in November 2022. According to the plea agreement, on March 16, 2022, Alabama Probation & Parole officers conducted a home visit at the residence of Jones located in Hanceville, Alabama. Jones was on state felony probation, and as conditions of his probation he had to submit to searches by probation officers and was prohibited from possessing firearms. The probation officers recovered a Smith & Wesson .38 Special revolver, a Röhm .22 caliber revolver, a Winchester 12-gauge shotgun, a Weatherby .300 Weatherby Magnum rifle, a Remington .300 Winchester Magnum rifle, a Remington .22 caliber rifle, and 907 rounds of ammunition from Jones’ home. Prior to his arrest in this case, Jones had been convicted of Sodomy, First Degree, and Sex Abuse, First Degree, in the Circuit Court of Jefferson County, Alabama. ATF investigated the case along with the Alabama Probation and Parole Office. Assistant U.S. Attorney Daniel S. McBrayer prosecuted the case. An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.


title: Former Assistant Chief of Staff of the U.S. Navy’s Seventh Fleet Sentenced to 30 Months in Prison in Massive Corruption Scandal

component: USAO - California, Southern

body_text: SAN DIEGO – U.S. Navy Captain (Retired) Jesus Vasquez Cantu was sentenced today to 30 months in prison by a federal district judge in San Diego on charges that he received lavish bribes from foreign defense contractor Leonard Francis, who plied him with luxurious hotel stays, travel, and prostitutes. Cantu was also ordered to pay a criminal fine of $75,000 and restitution to the U.S. Navy in the amount of $100,000. “Mr. Cantu entered a den of corruption and in the process repudiated his oath and betrayed the sacred trust placed in him by the American people,” said U.S. Attorney Randy Grossman. “The Department of Justice and our agency partners will never relent in our pursuit of justice for schemes that dishonor our armed forces.” Grossman thanked the prosecution team and agency partners for their excellent work on this case. In his plea agreement, Cantu acknowledged that Francis took him and others out for drinks and dinners at posh restaurants, nightclubs and karaoke bars and paid for lavish hotel rooms and the services of prostitutes on numerous occasions in 2012 and 2013, during which time Cantu was the deputy commander, MSC Far East in Singapore, in charge of logistical sustainment to Navy ships operating in the Seventh Fleet. Cantu admitted that in return for these luxuries, he provided proprietary U.S. Navy information to Francis, and that he used his power and influence to help Francis and his company, Glenn Defense Marine Asia, known as GDMA, in its ship husbanding business. Cantu also admitted in his plea agreement that, in 2007, when he was the Assistant Chief of Staff for Logistics for the Commander of the U.S. Navy’s Seventh Fleet aboard the USS Blue Ridge, he and others participated in a bribery conspiracy with Francis. Cantu and other members of the conspiracy accepted an ongoing stream of bribes from Francis, and in exchange, Cantu was influenced in the performance of his official Navy responsibilities and acted in violation of his official Navy duties. “Mr. Cantu's sentencing holds him accountable for crimes he committed while serving as a senior Naval officer. His unconscionable criminal activity profoundly dishonored his oath, and unquestionably failed to meet the exacting standards required of all U.S. military personnel,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “DCIS and its investigative partners will continue their tireless efforts to bring to justice those who choose a similar illicit and dishonorable path regardless of tenure or position.” “Mr. Cantu betrayed his oath to his country and abused his position with the Navy by accepting lavish gifts from GDMA, including hotel rooms, entertainment, alcohol, and the services of prostitutes, in exchange for divulging sensitive information that helped Leonard Francis defraud the United States,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners remain committed to fully investigating all allegations of conspiracy, bribery and corruption that threaten the integrity of the Department of the Navy.” The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Valerie Chu, Michelle Wasserman, and David Chu of the U.S. Attorney’s Office for the Southern District of California. DEFENDANT Case Number: 17-CR-2376 Captain (Retired) Jesus Vasquez Cantu Age 64 Silverdale, Washington SUMMARY OF CHARGES Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371 Maximum Penalty: Five years in prison, a $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater INVESTIGATING AGENCIES Defense Criminal Investigative Service Naval Criminal Investigative Service Defense Contract Audit Agency


title: Brookneal Lumber Mill Owner Pleads Guilty to Tax Fraud

component: USAO - Virginia, Western

body_text: LYNCHBURG, Va. – A Brookneal, Virginia lumber mill owner who failed to pay employee taxes to the Internal Revenue Service pleaded guilty last week to one count of willful failure to collect or pay over taxes. According to court documents, James Edward Adams, 65, took over the day-to-day operation of his family’s lumber mill, Adams Lumber Company, in 2011. In 2012, Adams Lumber was referred to the IRS for failure to pay payroll taxes and a trust fund recovery penalty was imposed. From 2012 to 2022, Adams incorporated additional lumber and flooring entities, including Adams Wood, Halifax Forest, Halifax Flooring Products, Halifax Lumber Products, and Timber Trucking (collectively, the “Companies”), and exercised control over the Companies’ business and financial affairs. Even though Adams withheld employment and trust fund taxes from his employees, he failed to pay over the vast majority of these monies to the IRS for tax years 2014 through 2021, resulting in an outstanding balance of $598,800. The Federal Insurance Contribution Act (“FICA”) requires employers to withhold Medicare and Social Security taxes from their employees’ wages while the Internal Revenue Code requires employers to withhold federal income taxes from their employees’ wages. Employers are required to hold these taxes (“trust fund taxes”) in trust for the United States and to pay them over to the IRS on behalf of their employees. In addition to trust fund taxes, employers are separately required to make contributions under FICA in amounts matching the amounts withheld from their employees’ pay for those purposes. These taxes paid by the employer, combined with the trust fund taxes withheld from the employees, are collectively known as “employment taxes.” At sentencing, Adams faces up to five years in prison and up to $250,000 in fines. United States Attorney Christopher R. Kavanaugh made the announcement today. The Internal Revenue Service investigated the case. Assistant U.S. Attorneys Charlene R. Day and Jason Scheff are prosecuting the case.


title: Mother-Daughter Fraudsters Sentenced for Social Security and Bankruptcy Scams

body_text: LYNCHBURG, Va. – A Hurt, Virginia woman, who stole more than $170,000 in Social Security Administration retirement funds to which she was not entitled, was sentenced in federal court just three months after her mother was sentenced on related charges. In November 2022, Christy Bowling, 38, pled guilty to concealment of bankruptcy assets and theft of government money. Last week, she was sentenced to two months in federal prison and one year of home detention. Bowling’s mother, Judith Cash, 58, of Shipman, Virginia, pleaded guilty in May 2022 to one count of theft of public money and was sentenced to one year of home detention. According to court documents, in August 2020, Betty Gowen, who had been incarcerated since 2011 for the murder of her husband, contacted the Social Security Administration (SSA) to apply for Title II Retirement Insurance Benefits upon her release from prison. When SSA officials received Gowen’s application, it was revealed that her daughter, Judith Cash, and granddaughter, Christy Bowling, had already applied for and had been receiving Gowen’s SSA Retirement Benefits since 2010. Cash and Bowling had been using the funds through a shared bankcard. SSA determined that Cash and Bowling stole $172,952 and the court has ordered them to pay this amount back in restitution. United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Gail S. Ennis, Inspector General for the Social Security Administration, made the announcement. The Social Security Administration investigated the case. Assistant U.S. Attorney Charlene R. Day prosecuted the case.


title: Russian Malware Developer Arrested And Extradited To The United States

component: USAO - Florida, Middle

body_text: Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and extradition of Dariy Pankov a/k/a “dpxaker.” Pankov is charged with conspiracy, access device fraud, and computer fraud. If convicted on all counts, he faces a maximum penalty of 47 years in federal prison. The indictment also notifies Pankov that the United States intends to forfeit $358,437, which is alleged to be traceable to proceeds of the offenses. Pankov, a citizen and resident of Russia, was taken into custody by Georgian authorities in the Republic of Georgia, on October 4, 2022, and extradited to the United States pursuant to a request from the United States. Pankov appeared before United States Magistrate Christopher P. Tuite on February 21, 2023, in Tampa, Florida and was ordered detained pending trial. According to the indictment, Pankov developed a malicious software program named “NLBrute.” The powerful malware was capable of compromising protected computers by decrypting login credentials, such as passwords. Pankov used NLBrute to obtain the login credentials of tens of thousands of computers located all over the world. He marketed, sold, and had others sell on his behalf, NLBrute to other cybercriminals for a fee. Pankov sold the stolen login credentials on a dark web website that specialized in the purchase and sale of access to compromised computers. Once sold, those credentials were used to facilitate a wide range of illegal activity, including ransomware attacks and tax fraud. Pankov listed the credentials of more than 35,000 compromised computers for sale on the website, and obtained more than $350,000 in illicit proceeds. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This investigation was led by the Internal Revenue Service—Criminal Investigation, Tampa Field Office, and the Federal Bureau of Investigation, Tampa Field Office. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and United States Marshals Service. This investigation also benefited from foreign law enforcement cooperation by the Georgian Prosecutor General’s Office, Ministry of Justice, and Ministry of Internal Affairs. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons. Download Indictment


title: Ex-prison guard sentenced after admitting she took bribes to allow inmate to receive smuggled items

component: Office of the Inspector General

body_text: DUBLIN, GA: A former guard at a private federal corrections facility was sentenced to prison after she admitted to accepting bribes to allow smuggled material into a prison. Tiffany Fletcher , 36, of McRae, Ga., a former corrections officer and counselor at the privately operated McRae Correctional Facility, was sentenced to 12 months in prison after previously pleading guilty to Bribery, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen Jr. also fined Fletcher $1,500 and ordered her to serve three years of supervised release upon completion of her prison term. There is no parole in the federal system. “The illegal smuggling of contraband materials, particularly cell phones, represents a continuing threat to the safety and security of our nation’s correctional facilities,” said U.S. Attorney Estes. “We continue to partner with investigative agencies to combat the flow of contraband material into prisons.” McRae Correctional Facility, in Telfair County, is operated by the private corrections company CoreCivic and houses male inmates under contract with the federal Bureau of Prisons. From June to December 2019, Fletcher admitted accepting bribes totaling $4,390 in return for “turning a blind eye” to smuggling and possession of contraband in the facility. “We trust Correctional Officers to keep federal prisons safe and secure. By accepting bribes and allowing contraband to enter the prison, Fletcher violated that trust and diminished the safety and security of the entire institution,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office. The case was investigated by the Department of Justice Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.


title: Salem Man Pleads Guilty for Using Twitter to Threaten Violence Against Robinhood Employees

component: USAO - Oregon

body_text: PORTLAND, Ore.—A Salem, Oregon man pleaded guilty today for using Twitter to threaten violence against employees of Robinhood Markets, Inc., an online financial services company based in Menlo Park, California. Christopher David Michalski, 39, pleaded guilty to one count of interstate communication of threats. According to court documents, on or about April 14, 2022, a Robinhood employee contacted the FBI to report a series of Twitter posts spanning nearly a year threatening violence toward Robinhood employees, including its Chief Executive Officer and his family. Further investigation revealed that the Twitter account used to transmit the threats, @goldshroomand1, was associated with the internet protocol address of Michalski’s home in Salem and that several photos of firearms accompanying the threats were taken at a nearby shooting range. On April 25, 2022, Michalski was charged by criminal complaint with interstate communication of threats. The next week, on May 4, 2022, special agents from the FBI and officers from the Salem Police Department arrested Michalski without incident. On May 19, 2022, Michalski was indicted by a federal grand jury in Portland. Michalski faces a maximum sentence of five years in federal prison, a $250,000 fine, and three years’ supervised release. He will be sentenced on May 15, 2023, by U.S. District Court Judge Michael H. Simon. This case was investigated by the FBI with assistance from the Salem Police Department’s Strategic Investigation Unit. It was prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.


title: Navajo man pleads guilty to sexual abuse of a minor

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Christian Apachito pleaded guilty to sexual abuse of a minor on Feb. 15, 2023. Apachito, 28, of Tohajiilee, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not yet been scheduled. In his plea agreement, Apachito admitted that on or about November 11, 2020, he engaged in a sexual act with the victim, identified as Jane Doe. The victim is also a member of the Navajo Nation and was at least the age of 12 years but not yet 16 years old at the time. The abuse took place on the Navajo Nation. By the terms of the plea agreement, Apachito faces not more than 15 years in prison and must register as a sex offender. This case was investigated by the FBI Albuquerque Field Office with assistance from the Navajo Department of Criminal Investigation. Assistant United States Attorneys Kimberly N. Bell and Mark Pfizenmayer are prosecuting the case. # # # 23-31


title: Portland Man Sentenced to Federal Prison for Assaulting Postal Employee

body_text: PORTLAND, Ore.—On February 21, 2023, a Portland man was sentenced to federal prison for punching a U.S. Postal Service employee after stealing several trays of mail from a post office. Dellmon Timmy Smith, 53, was sentenced to 30 months in federal prison and three years’ supervised release. According to court documents, on November 22, 2021, Smith—who has a criminal history spanning decades that includes multiple felony convictions for theft and making threats of violence during his various thefts—entered a back door of the Creston U.S. Post Office on SE Foster Road in Portland, pushed past a postal service employee, grabbed two trays of mail, and ran away. The employee yelled for help and several other postal employees chased Smith down the street. When the first employee caught up to Smith, Smith dropped the trays of mail, reached into his waistband, and said “I have a gun, I’m going to shoot you.” As two other employees caught up, Smith turn around and punched one of the employees in the face, below their left eye, and before falling to the ground. The employees took pictures of Smith, collected the stolen mail, and returned to the post office. Smith was later identified and arrested without incident. On June 22, 2022, a federal grand jury in Portland returned a two-count indictment charging Smith with mail theft and assault on a federal officer. On November 28, 2022, he pleaded guilty to the assault charge. This case was investigated by the U.S. Postal Inspection Service (USPIS). It was prosecuted by Meredith D.M. Bateman and Seth Uram, Assistant U.S. Attorneys for the District of Oregon.


title: Two Nigerian citizens indicted for attempting to defraud the United States of over $25 million

component: USAO - Washington, Western

body_text: Seattle – Two Nigerian citizens who currently reside in Toronto, Canada, have been indicted by a federal grand jury for their scheme to steal COVID-19 disaster benefits and U.S. tax refunds, announced U.S. Attorney Nick Brown. Sakiru Olanrewaju Ambali, 45, was arrested yesterday in Frankfurt, Germany, as he traveled back to Canada from Nigeria. Fatiu Ismaila Lawal, 45, was arrested in Canada. Each defendant remains in Germany or Canada respectively pending extradition to the U.S. “These men are accused of using the stolen identities of thousands of Americans to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State,” said U.S. Attorney Nick Brown. “My Office is committed to bringing to justice those accused of exploiting a time of crisis to illegally enrich themselves, whether they are in the United States or abroad.” “These arrests demonstrate the Department’s commitment to bring together our law enforcement partners and pursue these alleged fraudsters around the world,” said Department of Justice Acting Director of COVID-19 Fraud Enforcement Michael C. Galdo. “I applaud the hard work of the U.S. Attorney’s Office for the Western District of Washington, thank our domestic and international partners for their continued assistance, and look forward to seeing additional results from the data analysis identifying suspected pandemic relief fraud.” According to the indictment, Lawal and Ambali used the stolen personal information of thousands of U.S. taxpayers and residents to file fraudulent claims for COVID-19 pandemic assistance and false tax returns seeking refunds. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits. The co-conspirators allegedly submitted claims for pandemic unemployment benefits to over 25 states including New York, Maryland, Michigan, Nevada, California, and Washington. Using 13 Google accounts they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud. Lawal and Ambali allegedly filed some 2300 fraudulent income tax returns seeking over $7.1 million in tax refunds. The IRS caught most of the fraud and paid only about $30,000 in fraudulent refunds. The co-conspirators also attempted to use the stolen identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration. According to the indictment, the co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use. Lawal and Ambali are charged with conspiracy to commit wire fraud, ten counts of wire fraud and six counts of aggravated identity theft. The conspiracy and wire fraud counts are punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other prison time imposed in the case. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Washington State Employment Security Division (ESD), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration (SBA). The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson of the Western District of Washington. DOJ’s Office of International Affairs is assisting. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . 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 https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . lawal_and_ambali_indictment.pdf


title: New York Man Is Charged With Cyberstalking, Kidnapping, And Related Offenses

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – A federal grand jury in Charlotte returned a criminal indictment charging Russell J. Martini, 45, of Bay Shore, New York, with cyberstalking, stalking, kidnapping, and making interstate threats, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement. According to allegations in the indictment, from April to May 2022, Martini sent repeated harassing and threatening communications to an individual identified in court documents as “Jane Doe.” The indictment alleges that Jane Doe knew Martini and had obtained a protection order in New York that prohibited the defendant from contacting her. In April 2022, Jane Doe moved from New York to Charlotte. Soon thereafter, Martini allegedly began a cyberstalking campaign against Jane Doe, and used texts, emails and social media platforms to send Jane Doe and members of her family harassing messages and threats of death and bodily injury. Martini also allegedly created a public social media account in Jane Doe’s name and used a compromising photo of the victim as a profile picture. The indictment further alleges that Martini threatened to publish sexual photos and videos of Jane Doe online and on popular social media websites if Jane Doe did not respond to Martini’s communications. According to the indictment, in May 2022, Martini traveled to Charlotte and attempted to kidnap Jane Doe. The indictment alleges that Martini waited at Jane Doe’s apartment complex and attacked her as she walked up the stairs to her apartment. Martini allegedly attempted to drag the victim to his car but a bystander intervened and Martini fled. After the attack, Martini allegedly sent Jane Doe an email asking her if she was “ready for round two” and threatened to kill her. Martini is currently in state custody and will be scheduled to appear in federal court. He faces a maximum penalty of up to life in prison for the kidnapping charge, and a maximum prison term of five years for each offense of cyberstalking, stalking, and communicating interstate threats. The charges against Martini are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law. In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of this case. Assistant United States Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte is prosecuting the case. # # #


title: Jill E. Steinberg takes oath as U.S. Attorney for the Southern District of Georgia

component: USAO - Georgia, Southern

body_text: U.S. District Court Chief Judge J. Randal Hall administers the oath of office to Southern District of Georgia U.S. Attorney Jill E. Steinberg on Wednesday, Feb. 22, 2023, in the Federal Courthouse in Augusta, Ga., observed by U.S. District Court Judge Dudley H. Bowen. SAVANNAH, GA: Jill E. Steinberg has been sworn in as the U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall administered the oath on February 22, 2023. President Joseph R. Biden, Jr. nominated Steinberg to be U.S. Attorney on October 19, 2022, and the U.S. Senate confirmed her nomination on February 16, 2023. “I am incredibly honored to serve as the United States Attorney for the Southern District of Georgia,” said U.S. Attorney Steinberg. “I look forward to working with the outstanding attorneys and staff in the U.S. Attorney’s Office, our federal, state, and local law enforcement partners, and members of the community to serve the citizens of the district.” Steinberg has been a partner at Ballard Spahr LLP in Philadelphia, Pennsylvania, since 2021. From 2008 to 2014, and from 2016 to 2021, she served the citizens of Georgia as an Assistant U.S. Attorney and Deputy Criminal Chief in the U.S. Attorney’s Office for the Northern District of Georgia. From 2014 to 2016, Steinberg worked at the Department of Justice in Washington, D.C. where she served as an Attorney Advisor in the National Security Division and then as Associate Deputy Attorney General in the Office of the Deputy Attorney General. From 2001 to 2008, she was an associate at Rogers & Hardin LLP in Atlanta, Georgia. Steinberg began her legal career as an Assistant District Attorney for the Philadelphia District Attorney’s Office from 1998 to 2001. She received her Juris Doctor from Duke University Law School in 1998 and her Bachelor’s degree, summa cum laude, from the University of Georgia in 1995. As U.S. Attorney, Steinberg is the chief federal law enforcement officer for the Southern District of Georgia, which covers 43 of Georgia’s 159 counties with a population of more than 1.6 million people and includes the cities of Savannah, Augusta, and Brunswick. She leads a team of approximately 70 attorneys and staff in prosecuting federal crimes in the district and defending the United States in civil cases brought in U.S. District Court. Learn more about the district at www.justice.gov/usao-sdga/about-district .


title: Foley Woman Sentenced to Five Years in Prison for Embezzling Church Funds

component: USAO - Alabama, Southern

body_text: MOBILE, AL – A Foley woman was sentenced to 60 months in prison for wire fraud in connection with her embezzlement of more than $200,000 from a church where she worked. According to court documents, Sharon Collins, 53, was employed by the First Baptist Church in Foley between May 2007 and July 2019, during which time she served as the church’s financial secretary. In that role, Collins was responsible for, among other things, managing the church’s accounting system, preparing financial reports, creating and providing financial statements to the church’s leadership, and managing church-issued credit cards meant to be used solely for the church’s benefit. During her time as financial secretary, Collins embezzled $209,744.61 of church funds through unauthorized use of church-issued credit cards. In connection with her guilty plea, Collins admitted that between 2008 and 2019, she made hundreds of electronic transactions for her benefit and the benefit of her friends and family. Among other things, Collins fraudulently used church-issued credit cards to pay for personal expenses, to purchase trips to New Orleans and Las Vegas, to book a cruise, to buy jewelry, and to fund a bachelor’s degree. Collins’s fraudulent credit card transactions transmitted interstate wire signals in furtherance of her fraud scheme, in violation of federal law. Investigators interviewed Collins in August 2020 with her attorneys present. Collins admitted that during the interview, she made several false statements obstructing the investigation and prosecution of her crimes. Among other things, Collins admitted that she lied about having the church’s approval to make various personal expenditures. United States District Judge Terry F. Moorer ordered Collins to serve a three-year term of supervised release upon her release from prison, during which time she will receive mental health evaluation and treatment and will be subject to credit restrictions. The court did not impose a fine, but Judge Moorer ordered Collins to pay $209,744.61 in victim restitution and $1,200 in special assessments. U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement. The Federal Bureau of Investigation and the Baldwin County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Bishop Ravenel and Justin Roller prosecuted the case on behalf of the United States.


title: Fairhope Drug Dealer Sentenced to 54 Years

body_text: MOBILE, AL – A Fairhope man was sentenced to 54 years (648 months) in prison for his participation in a conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine. Darrell Williams, 53, was convicted on both charges by a federal jury in October of 2022. The evidence at trial showed that Williams was a local drug distributor in an organization whose leaders were distributing cocaine from suppliers in Texas and heroin from a supplier in Birmingham, Alabama. The trial evidence showed that the Federal Bureau of Investigations (FBI) obtained a court-authorized wiretap on two of the local conspirators and identified Williams as one of those regularly receiving controlled substances for distribution in Baldwin County. During the investigation, agents deciphered a coded reference to an address in Mobile where a two-kilogram shipment of cocaine from Texas was being delivered. Williams agreed to wait for the delivery of the cocaine and transport it to Baldwin County, where it was going to be packaged for further distribution. The shipment was intercepted by the FBI and the drugs were seized. Williams and one of his co-defendants, James Harding, elected to take their cases to a jury trial. Harding was identified during the trial as the supplier of the heroin distributed through the organization. The evidence offered against Williams at the trial included recorded phone conversations between him and another conspirator which were obtained through the court-authorized wiretap. Williams also provided a statement to FBI agents after he had been advised of his constitutional rights. In this video- and audio-recorded statement, he admitted his involvement in the conspiracy and in the events leading up to the seizure of the two-kilogram shipment of cocaine. Williams was found guilty on both counts by the trial jury. United States District Court Judge Terry F. Moorer, who sentenced Harding to 960 months’ imprisonment earlier this month, imposed the 648-month sentence in Williams’ case at the sentencing hearing. The sentence consisted of a 324-month term for each count, which were ordered to run consecutively to each other. The judge ordered that the total term of imprisonment, 648 months, will be followed by a five-year term of supervised release. Williams will undergo testing and treatment for drug abuse. The judge also imposed a special condition that the probation office may search Williams’ person or property upon a showing of reasonable suspicion that he is in violation of any of the conditions of his supervision. No fine was imposed but the judge ordered that Williams pay $200 in special mandatory assessments. The FBI, the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, the Foley Police Department, the Daphne Police Department, Gulf Shores Police Department and the Bay Minette Police Department, the Alabama Law Enforcement Agency, and the Mobile County Sheriff’s Office all participated in the investigation. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.


title: 50 charged in Harris County firearms initiative

component: USAO - Texas, Southern

body_text: HOUSTON – Several dozen felons have been charged with varying offenses related to the illegal possession of firearms and ammunition throughout Harris County, announced U.S. Attorney Alamdar S. Hamdani. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led a 90-day surge with the assistance of the FBI, Houston Police Department (HPD), U.S. Marshals Service (USMS) and the Harris County District Attorney’s Office (HCDA). Over the course of those days, 44 people were indicted and six others charged by criminal complaint as being felons illegally in possession of firearms or ammunition. Thus far, 36 have been arrested. Warrants remain outstanding for 14 others. The goal was to help reduce firearms-related violent crime and to assist in reducing the backlog of felon in possession cases throughout the county. The backlog had allowed previously convicted felons who are arrested with a firearm to remain in our community for several months, sometimes years, before they faced a trial. The surge involved over a dozen investigators, an intelligence research specialist as well as prosecutors on both the state and federal levels. It is in concert with the effort to combat violent crime in the area. However, this effort is not over nor limited to Harris County. Law enforcement continues to target those similar felons who potentially pose a danger to the community. Just this morning, another man - an alleged gang member in the Navasota area - was in federal court for a detention hearing. He again is a convicted felon, now federally charged with illegally possessing a firearm. The federal firearms charges carry potential terms of imprisonment of up to 10 or 15 years depending on the offense date and maximum fines of $250,000. The ATF conducted the investigations with the assistance of the FBI, HPD, USMS and the HCDA. A variety of Assistant U.S. Attorneys throughout the U.S. Attorney’s Office are handling the cases. An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.


title: Medical Center pays over $21M to settle alleged false claims

body_text: HOUSTON – Cornerstone Healthcare Group Holding Inc. and CHG Hospital Medical Center LLC. dba Cornerstone Hospital Medical Center have agreed to pay the United States $21,637,512 to resolve claims that the company improperly billed Medicare, announced U.S. Attorney Alamdar S. Hamdani. Some of the alleged claims were submitted for unauthorized services, services not provided and services which were deemed so inadequate they were considered worthless. “Taking advantage of the elderly and infirm is disgraceful,” said Hamdani. “When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the necessary and best care possible to the patient. As one of the largest of its kind in our district, this settlement shows our commitment to protecting our most vulnerable citizens and the integrity of the Medicare system.” Cornerstone Medical Center was formerly a long-term acute care facility located in Houston that operated as a long-term care hospital. Cornerstone was in the business of providing extended medical and rehabilitative care to individuals who qualified as clinically complex and possessed multiple acute and/or chronic conditions. Through its subsidiaries, CHG Holding operated specialty hospitals throughout the United States, including Cornerstone Medical Center which is no longer in business. The investigation began when a qui tam aka whistleblower lawsuit was filed under seal Sept. 28, 2018. The individual filing the suit worked at Cornerstone Medical Center long term care facility. During the relator’s employment, they witnessed, among other things, unlicensed, unauthorized students of Drs. Jorge Guerrero, Joel Joselevitz and Joseph Varon rendering medical procedures. These unauthorized and improper services were fraudulently billed to Medicare. In addition, Cornerstone Medical Center submitted claims for payment for services certain treating physicians allegedly rendered. However, records showed those physicians were actually out of the country and could not have performed the services. Finally, the investigation concluded that from Jan. 1, 2012, through Dec. 31, 2018, Cornerstone Medical Center billed for services not supported by the patients’ diagnosis or medical records, and billed for services that were either not rendered or were so inadequate they were worthless (in some cases, resulting in harm to patients.) The claims for payment to Medicare for those services were deemed to be fraudulent and submitted in violation of federal law. “Submitting improper claims to Medicare compromises the financial security of the program and wastes valuable taxpayer dollars,” said Acting Special Agent in Charge Korby R. Harshaw of Department of Health and Human Services - Office of Inspector General (DHHS-OIG). “We will continue to work alongside our law enforcement partners to protect the integrity of federal health care programs and to hold bad actors who exploit them accountable.” “This $21.6 million settlement by Cornerstone Healthcare Group Holding is one of the largest civil healthcare fraud settlements FBI Houston has seen, and we work a lot of healthcare fraud cases. I hope this case sends a message to other healthcare providers who think they can get away with similar fraud,” said FBI Special Agent in Charge James Smith. “Not only did Cornerstone Healthcare bilk the Medicare program out of millions of dollars, it also took advantage of its patients who were unknowingly used for its scam. These patients trusted their doctors and healthcare providers and ultimately received little to no care. At the end of the day, health care fraud affects everyone. It raises our health insurance premiums and exposes patients to worthless and unnecessary medical procedures. I’m proud of the work our FBI Houston Healthcare Fraud Task Force has done.” Under the False Claims Act, a private party known as a relator can file an action on behalf of the United States and receive a portion of the recovery. In this case, the relator will receive $4,327,502. The U.S. Attorney’s Office, DHHS-OIG, FBI and Department of Defense conducted the investigation. The claims resolved by the settlement are allegations only, and there has been no determination of liability.


title: 12 Defendants from 4 States Charged in Federal Methamphetamine Conspiracy

component: USAO - Kentucky, Western

body_text: Owensboro, KY – A federal grand jury in Bowling Green, Kentucky, returned a two-count indictment on February 15, 2023, charging twelve defendants with conspiring to possess with the intent to distribute methamphetamine. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Shane Catone of the DEA Chicago Field Division, Special Agent in Charge Jerry C. Templet, Jr. of the Department of Homeland Security Investigations, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Chief Art Ealum of the Owensboro Police Department, and Sheriff Brad Youngman of the Daviess County Sheriff’s Office made the announcement. According to the indictment, the following 12 defendants were each charged with conspiracy to possess with the intent to distribute over 500 grams of methamphetamine between July 2022 and February 14, 2023: Chance Morton, 34, of Owensboro, Kentucky; Nicholas Stallings, 38, of Forest Park, Georgia; George James, 52, of Hawesville, Kentucky; Desmond Morton, 38 of Owensboro, Kentucky; Morgan Anderson, 36, of Owensboro, Kentucky; William Simmons, 49, of Owensboro, Kentucky; Johnny Albury, 55, of Owensboro, Kentucky; Charles Hudson, 44, of Vero Beach, Florida; Ellis Parker, 64, of Owensboro, Kentucky; Willie Mosley, 55, of Hagerstown, Maryland; Brian Ray, 36, of Philpot, Kentucky; and Lindsay R. Harper, 39, of Hawesville, Kentucky. The defendants are in custody and scheduled to make their initial court appearances before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky tomorrow. If convicted, all defendants face a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system. The DEA, FBI, HSI, Owensboro Police Department, Daviess County Sheriff’s Office, and the Appalachia High Intensity Drug Trafficking Area (HIDTA) Owensboro-Daviess County Drug Task Force are investigating the case, with the assistance of the United States Postal Inspection Service, the Kentucky State Police DESI-West, the Indian River County (Florida) Sheriff’s Office, the Indiana State Police, the United States Attorney’s Office for the Southern District of Florida, the United States Attorney’s Office for the Middle District of Florida, the United States Attorney’s Office for the Northern District of Georgia, the United States Attorney’s Office for the Northern District of West Virginia, the Hancock County Sheriff’s Office, the United States Secret Service, and the ATF. Assistant U.S. Attorneys Frank Dahl and Mark Yurchisin are prosecuting the case. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF. ###


title: Durant Woman Pleads Guilty to Mail Theft

component: USAO - Mississippi, Southern

body_text: Jackson, Miss. – A Durant woman pled guilty to mail theft, announced U.S. Attorney Darren J. LaMarca and Scott Pierce, Inspector in Charge of the U.S. Postal Service Office of Inspector General, Southern Area Field Office. Cori T. Hopson, 22, pled guilty in U.S. District Court in Jackson. According to court records, Hopson was a Highway Contract Driver for the United States Postal Service and was responsible for picking up mail from remotely managed post offices for delivery to another post office. Special agents with the U.S. Postal Service Office of the Inspector General investigated after receiving complaints of missing mail along Hopson’s route. On September 29, 2022, agents found Hopson to be in possession of mail she did not deliver. Hopson is scheduled to be sentenced on May 17, 2023. She faces a maximum penalty of 5 years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. This case was investigated by the U.S. Postal Service Office of the Inspector General. Assistant U.S. Attorney Matt Allen is prosecuting the case.


title: U.S. Attorney’s Office Announces 20th Annual Project Safe Neighborhoods Logo Contest

component: USAO - South Carolina

body_text: COLUMBIA, SOUTH CAROLINA — The United States Attorney's Office is sponsoring the 20th Annual Project Safe Neighborhoods (“PSN”) Logo Contest. The statewide contest welcomes students to illustrate how we can help prevent gun violence in our schools by designing a logo for use on upcoming PSN publications. The theme is “Preventing Gun Violence in Our Schools – Know the Signs.” The contest is open to all South Carolina grade school students, including homeschooled students, and entries will be categorized into four grade divisions: K-2nd grade, 3rd-5th grade, 6th-8th grade, and 9th-12th grade. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo will be chosen from the four division winners and will receive an additional $50 prize for a total of $100. The winning entries will be selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state encouraging children and promoting community awareness of the consequences of juvenile crime. In addition to the South Carolina Department of Juvenile Justice, the United States Attorney’s Office is proud to partner with the South Carolina Sheriffs’ Association, the South Carolina Police Chiefs’ Association, and the South Carolina Law Enforcement Officers’ Association for this year’s contest. Entries should be consistent with the theme “Preventing Gun Violence in Our Schools – Know the Signs.” The deadline for submissions is March 31, 2023. If your student is interested in participating, contact your local school as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found on our website at https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules . The centerpiece of the Department of Justice’s violent crime reduction efforts, PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The contest is an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes among our young people and ensuring a safe learning atmosphere for our schoolchildren. ###


title: Boston Man Indicted for Robbing Brookline Bank

component: USAO - Massachusetts

body_text: BOSTON – A Boston man has been indicted in connection with the September 2022 robbery of a bank in Brookline. Jerome Lamont Turner, 47, was indicted by a federal grand jury in Boston on one count of bank robbery. He will appear in Boston at a later date. Turner was previously charged by criminal complaint on Jan. 23, 2023. According to the charging documents, on Sept. 26, 2022, an individual – later identified as Turner – entered a Brookline Bank branch in Brookline. Once inside the bank, Turner allegedly approached a teller and inquired about opening a new account. Turner was provided a bank pamphlet on the process, and he exited the bank. A few minutes later, it is alleged that Turner reentered the bank, approached the same teller and handed them the pamphlet with the words, “Let me have 17,000 in large bills no dye pack,” written on it. As the teller was gathering money from the cash drawer, it is alleged that Turner repeatedly motioned for more money before exiting the bank. A subsequent investigation allegedly identified Turner on the bank’s video surveillance from a previous arrest less than a week earlier and identified his fingerprints on the pamphlet. It is further alleged that on Sept. 27, 2022, Turner was located wearing the same clothing worn in the Brookline robbery. Following a violent struggle, Turner was taken into custody and allegedly found in possession of over $2,500 in cash. The charge of bank robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brookline Acting Chief of Police Jennifer Paster made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit 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: Old Saybrook Contractor Sentenced to Prison for Tax Evasion

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DIMITRIOS KASSIMIS, also known as Jimmy Kassimis, 58, of Old Saybrook, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 15 months of imprisonment, followed by three years of supervised release, for tax evasion. According to court documents and statements made in court, Kassimis owns and operates various entities related to his construction business, including Allstate Contracting and JRC Renovations. In 2018 and 2021, Kassimis received substantial income from his businesses but did not file any personal or business federal income tax returns, and also did not file any employment tax returns for his businesses. The investigation revealed that Kassimis did not have any personal bank accounts. He paid all of his personal expenses through his business bank accounts and made cash withdrawals from the business accounts at casinos for personal expenses. He also cashed checks made payable to his businesses at a check cashing business in New York and failed to report that income. In addition, he did not issue IRS Forms 1099 or W-2 to his employees and paid at least some employees in cash. The tax loss to the IRS for the 2018 through 2021 tax years was $233,086.87. Judge Williams ordered Kassimis to cooperate with the IRS to pay all outstanding tax liabilities. On November 9, 2022, Kassimis pleaded guilty to one count of tax evasion. Kassimis, who is released on bond, is required to report to prison on April 24. This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney David T. Huang.


title: Jefferson County Man Indicted on Federal Gun Theft Charges for Stealing Numerous Firearms from Licensed Dealers

body_text: Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment today charging a local man with stealing firearms from licensed firearms dealers. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement. According to the indictment, Dairon Finisson, 19, was charged with two counts of stealing a firearm from a licensed dealer of firearms. On July 17, 2022, Finisson, aided and abetted by others, is alleged to have stolen 17 pistols, 7 rifles, and a shotgun. On July 20, 2022, Finisson, aided and abetted by others, is alleged to have stolen 6 rifles and 1 pistol. The defendant will make an initial court appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky on a later date. If convicted, Finisson faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system. This case is being investigated by the ATF, Louisville Metro Police Department, and Jeffersontown Police Department. This case is being prosecuted by Assistant United States Attorney Josh Porter. 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. 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 Grand Jury Indicts Louisville Felon for Illegal Possession of a Firearm and Machine Gun

body_text: Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment today charging a local man with being a convicted felon in possession of a firearm and for illegally possessing a machine gun. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement. According to the indictment, on February 13, 2023, Charles Divine, 26, possessed two Glock 9-millimeter pistols after having previously been convicted of the following felony offense. On June 30, 2020, in Jefferson Circuit Court, Devine was convicted of wanton endangerment in the first degree. The indictment also alleges that on February 13, 2023, Divine illegally possessed a machine gun, that is a Glock switch bearing no serial number. A Glock Switch device allows a semi-automatic handgun to function as an automatic and is defined as a machine gun under federal law. Divine will make his initial court appearance before a United State Magistrate Judge in the United States District Court for the Western District of Kentucky on a later date. If convicted, Divine faces a maximum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system. This case is being investigated by the ATF and the Louisville Metro Police Department. Assistant U.S. Attorney Frank Dahl is prosecuting this case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Third and Pike armed drug dealer sentenced to five years in prison

body_text: Seattle – A 31-year-old Seattle man was sentenced today in U.S. District Court in Seattle to five years in prison for federal crimes related to his distribution of fentanyl pills in downtown Seattle and his armed shoplifting in Bellevue, announced U.S. Attorney Nick Brown. Kendall Alston was arrested on March 23, 2022, after Seattle Police Officers noted his hand-to-hand drug sales. The officers had been surveilling the area of 3 rd Avenue between Pike and Pine Streets as part of “Operation New Day.” The emphasis patrol was aimed at increasing public safety in the Pike/Pine corridor where drug sales had led the area to become a hot spot for other crimes including assaults and shootings. “Mr. Alston was armed with a loaded handgun while dealing potentially deadly fentanyl pills in downtown Seattle,” said U.S. Attorney Nick Brown. “Drugs and guns are a deadly combination and getting both off the street is a priority for the community.” According to records filed in the case and testimony at trial, an officer in an observation point above the street witnessed a person in distinctive clothing engaging in what appeared to be a hand-to-hand drug sale. The officer returned to street level and saw the person later identified as Alston make another drug sale. Officers moved in and took Alston into custody. Alston carried 244 blue pills that were later tested and found to contain fentanyl. In his backpack, Alston carried a loaded Hi-Point .45 caliber semi-automatic handgun. After a 3-day trial in August 2022, the jury deliberated about three hours before finding Alston guilty of knowingly distributing fentanyl, possession of fentanyl with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Following the guilty verdicts, Alston agreed to plead guilty to two additional counts of being a felon in possession of a firearm. The counts are related to his March arrest in downtown Seattle with the firearm, and a previous January 2022 arrest for shoplifting in Bellevue, where he was found to be carrying a different firearm. Alston is prohibited from possessing firearms due to two felony convictions, a 2018 residential burglary conviction in Pierce County, and a 2013 residential burglary conviction in King County. At the sentencing hearing U.S. District Judge Lauren J. King noted Alston was “an intelligent young man engaging in high-risk behavior…. Possessing a firearm while dealing drugs adds to the danger.” The case was investigated by the Seattle Police Department with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Cecelia Gregson and Casey Conzatti.


title: Fayetteville Man Sentenced to More Than 15 Years for  Child Pornography After Negotiating a Plan to  Have Sex with a Child in Jamaica

component: USAO - North Carolina, Eastern

body_text: NEW BERN, N.C. – Darren Kalmar of Fayetteville was sentenced today to 188 months in prison for two counts of receipt of child pornography. Kalmar, 58, pled guilty to the charge on May 13, 2022. According to court documents and other information presented in court, in 2019, the National Center for Missing and Exploited Children (NCMEC) received two CyberTip reports from a social networking platform, Tagged, regarding suspected child exploitation activity. The CyberTips concerned activity in May 2019 between two users who discussed arranging for sex with minors abroad. One user, later identified as Kalmar, mentioned having sex with a 13-year-old Dominican girl and asked the other person to arrange contact with a girl who was nine or 10 years old. The other responded with a photo that appeared to depict a prepubescent female, and Kalmar responded, “perfect, I want her.” They negotiated prices, settling on $90 for nude photos and $250 for access to the child for five days. He provided a CashApp payment username that contained “kalmar” and an email address with username dskalmar32. At the end of the conversation, Kalmar states that he sent the money and that he needs the photos now before asking the second user, “You get the money and run[?]” The IP address for the second user was traced to a woman in Jamaica. Kalmar’s IP was tracked to a residence in Fayetteville, and DMV records showed that the defendant Darren Kalmar resided there. Law enforcement compared Kalmar’s driver’s license photo to a user profile photo on his Tagged account and found that they matched. The Federal Bureau of Investigation (FBI) executed a search warrant on Kalmar’s home on October 18, 2019. On Kalmar’s cellphone, agents found audio files in which Kalmar appeared to be discussing upcoming travel to the Philippines for sex with a 15-year-old minor female and her friends. FBI confirmed that Kalmar had purchased tickets to travel to the Philippines on those dates. Records also showed Kalmar had previously traveled to Cambodia and the Philippines in 2018. Kalmar agreed to be interviewed and admitted to owning the Tagged account and chatting with someone in Jamaica. He also confirmed that the CashApp account was his but claimed the conversation arranging a sexual encounter with a minor was merely fantasy. FBI conducted forensics on Kalmar’s computer and several mobile devices. On a cellphone they found 21 images depicting child sexual abuse material (CSAM), and on a computer they found an additional 401 images and 11 videos of CSAM. The files included minors under the age of 12. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00013-FL. ###


title: Former MoviePass Executive Arrested on Indictment Alleging He Embezzled $260,000 from Employer to Repay Coachella Debt

component: USAO - California, Central

body_text: LOS ANGELES – A former executive at cinema subscription service MoviePass Inc. has been arrested on a federal grand jury indictment alleging he embezzled approximately $260,000 from MoviePass’ parent company to repay money he borrowed to produce an event at the Coachella music festival, the Justice Department announced today. Khalid Itum, 42, of Hollywood, was arrested by special agents with the FBI on Tuesday. Itum is charged with two counts of wire fraud and two counts of money laundering. At his arraignment Tuesday afternoon in United States District Court, Itum pleaded not guilty to the charges, and an April 18 trial date was scheduled. He was ordered released on $75,000 bond. According to the indictment returned Friday by a federal grand jury, Itum was a MoviePass executive from November 2017 until March 2019. MoviePass was a New York-based company that charged subscribers a flat monthly fee in exchange for credits they could spend on movie tickets from any theater in MoviePass’s network of participating cinemas. In August 2017, Helios & Matheson Analytics (HMNY), a New York-based data analytics company, acquired MoviePass. In the spring of 2017, Itum registered Kaleidoscope Productions LLC, a Los Angeles-based company that provided production and marketing services. That year, Itum, through Kaleidoscope, organized a party at the annual Coachella Valley Music and Arts Festival in Indio. Neither MoviePass nor HMNY participated in the Coachella event. Itum borrowed money from two individuals to help fund Kaleidoscope’s costs at Coachella. To repay the borrowed money, Itum later allegedly submitted sham invoices to HMNY for services purportedly rendered by Kaleidoscope and a different company owned by an Itum associate. Itum allegedly caused HMNY employees to wire money from MoviePass and HMNY accounts to a Kaleidoscope bank account to pay the sham invoices. Itum allegedly concealed his scheme by lying to HMNY’s auditor that Kaleidoscope had been used to pay legitimate MoviePass expenses from the 2018 Coachella festival. Itum caused HMNY a total loss of $260,000, according to the indictment. An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted of all charges, Itum would face a statutory maximum sentence of 20 years in federal prison for each wire fraud count and up to 10 years in federal prison for each money laundering count. The FBI’s New York Field Office is investigating this matter. The FBI’s Los Angeles Office is providing substantial assistance. Assistant United States Attorney David Y. Pi of the Major Frauds Section is prosecuting this case.


title: U.S. Attorney Sayler A. Fleming Announces New Voluntary Self-Disclosure Policy

component: USAO - Missouri, Eastern

body_text: United States Attorney Sayler A. Fleming announced that the U.S. Attorney’s Office for the Eastern District of Missouri has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate. The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy. Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program. The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program. In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy. The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.