title: Charges and Seizures Brought in Fraud Scheme Aimed at Denying Revenue for Workers Associated with North Korea

component: National Security Division (NSD)

body_text: WASHINGTON – The Justice Department unsealed charges, seizures, and other court-authorized actions to disrupt the illicit revenue generation efforts of the Democratic People’s Republic of Korea (DPRK or North Korea). The charges include prosecutions of an Arizona woman, Ukrainian man, and three unidentified foreign nationals who allegedly participated in schemes to place overseas information technology (IT) workers—posing as U.S. citizens and residents—in remote positions at U.S. companies. As alleged in the court documents, DPRK has dispatched thousands of skilled IT workers around the world, who used stolen or borrowed U.S. persons’ identities to pose as domestic workers, infiltrate domestic companies’ networks, and raise revenue for North Korea. The schemes described in court documents involved defrauding over 300 U.S. companies using U.S. payment platforms and online job site accounts, proxy computers located in the United States, and witting and unwitting U.S. persons and entities. This announcement includes the largest case ever charged by the Justice Department involving this type of IT workers’ scheme. Two criminal prosecutions brought by the U.S. Attorney’s Office for the District of Columbia, one in partnership with the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division, were unsealed today. As part of the prosecutions, two defendants have been arrested and related seizures and search warrants have been executed in Washington, D.C. and other jurisdictions. The investigations were led by the FBI Phoenix and New York Field Offices and IRS Criminal Investigations (IRS-CI), and coordinated with five other FBI field offices and four other U.S. Attorney’s Offices, producing arrests in the United States and Poland, the execution of five premises search warrants, and the seizure of illicitly obtained wages and a website domains. “As alleged in the indictment, Chapman and her co-conspirators committed fraud and stole the identities of American citizens to enable individuals based overseas to pose as domestic, remote IT workers,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The charges in this case should be a wakeup call for American companies and government agencies that employ remote IT workers. These crimes are alleged to have benefitted the North Korean government. The Criminal Division remains firm in its commitment to prosecute complex criminal schemes like this one.” “Today’s announcement of charges and law enforcement action show our broad approach to attacking funding sources for North Korea across the United States,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to vigorously pursue cases against individuals, in the United States and abroad, that use U.S. financial systems to raise revenue for North Korea.” “On the surface, today’s allegations of wire fraud, identity theft, and money laundering may read like a typical white collar or economic crime scheme,” said Assistant Director Kevin Vorndran of the FBI’s Counterintelligence Division. “But what these allegations truly represent is a new high-tech campaign to evade U.S. sanctions, victimize U.S. businesses, and steal U.S. identities. The charges clearly demonstrate how the FBI and its partners will employ every resource at our disposal to bring to justice anyone who helps North Korea evade sanctions.” “The FBI has long-stated that cybersecurity is national security and this case is living proof of that,” said FBI Special Agent in Charge Akil Davis of the Phoenix Field Office. “That a woman living her quiet life in the outskirts of Phoenix can allegedly get so entangled in something like this clearly indicates our adversaries are getting more sophisticated and stealthier, so it’s critical that businesses and citizens be hyper-vigilant with their cyber activities.” “Today’s announcement exposes disturbing criminal ties to North Korea where fraudsters allegedly used stolen identities of U.S. citizens to infiltrate the U.S. job market as remote workers,” said IRS Criminal Investigation Acting Special Agent in Charge of the Phoenix Field Office Carissa Messick. “CI and our federal partners will remain vigilant in our efforts to expose criminal fraud schemes that jeopardize our national security.” “Oleksandr Didenko allegedly owned and operated U.S.-based online infrastructure as well as fraudulent and stolen U.S. persons’ identities for use by Information Technology workers in North Korea in an effort to evade sanctions,” said FBI Assistant Director Smith of the New York Field Office. “The arrest of Didenko demonstrates the FBI’s commitment to protecting the United States from threats posed by a hostile foreign actors, specifically the government of the Democratic Peoples Republic of Korea. Didenko's arrest also sends a clear message to anyone who supports this type of brazen illegal activity the FBI and our global law enforcement partners will hold you accountable wherever you may be.” An indictment was unsealed today in the District of Columbia against U.S. citizen Christina Marie Chapman, 49, of Litchfield Park, Arizona, related to her participation in a scheme to assist overseas IT workers—posing as U.S. citizens and residents—in working at more than 300 U.S. companies in remote IT positions. Chapman was arrested yesterday in Litchfield Park, Arizona. As alleged in the indictment, Chapman and her co-conspirators’ scheme defrauded U.S. companies across myriad industries, including multiple well-known Fortune 500 companies, U.S. banks, and other financial service providers. The identities of more than 60 U.S. persons were compromised and used by IT workers related to Chapman’s cell. In addition to Chapman, the indictment charged three foreign nationals with money laundering for their participation in the scheme. As alleged in the indictment, the department seized wages earned by more than 19 overseas IT workers and will seek forfeiture of the same. Additionally, a criminal complaint was unsealed today in the District of Columbia charging Ukrainian national Oleksandr Didenko, 27, of Kyiv, with a separate years-long scheme to create fake accounts at U.S. IT job search platforms and with U.S.-based money service transmitters. As alleged in the complaint, Didenko sold the accounts to overseas IT workers, some of whom he believed were North Korean, and the overseas IT workers used the false identities to apply for jobs with unsuspecting companies. Several U.S. persons had their identities used by IT workers related to Didenko’s cell, and evidence in the complaint showed that the overseas IT workers using Didenko’s services were also working with Chapman. Polish authorities arrested Didenko on May 6 at the request of the United States, which is seeking Didenko’s extradition from Poland. Didenko’s company’s online domain, upworksell.com, was also seized today by the Justice Department pursuant to a court order, and all traffic diverted to the FBI. Related to the above schemes, the FBI executed search warrants for U.S. based “laptop farms,” residences that hosted multiple laptops for overseas IT workers, wherein U.S.-based facilitators logged onto U.S. company computer networks and then allowed the overseas IT workers to remotely access those laptops through various software applications. The overseas IT workers used the laptop farms’ U.S. Internet Protocol addresses to make it appear as though they were operating inside the United States. Chapman’s residence was searched in October 2023 pursuant to a search warrant issued in the District of Arizona, resulting in evidence that is reflected in the indictment. Search warrants for four U.S. residences associated with laptop farms controlled by Didenko were issued in the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, and executed between May 8 and May 10. Concurrent with today’s announcement, the U.S. Department of State announced a reward of up to $5 million for information related to Chapman’s coconspirators: John Doe 1, alias Jiho Han; John Doe 2, alias Haoran Xu; John Doe 3, alias Chunji Jin; and an unindicted coconspirator utilizing aliases “Zhonghua” and “Venechor S.” Chapman Indictment, Money Seizures, and Premises Warrant According to the indictment, the overseas IT workers associated with Chapman, many of whom were tied to North Korea, posed as U.S. citizens using the stolen, false, or borrowed identities of U.S. nationals, and applied for positions at U.S companies, causing the transmission of false documentation to the U.S. Department of Homeland Security (DHS). The overseas IT workers gained employment at U.S. companies, including at a top-five major television network, a Silicon Valley technology company, an aerospace manufacturer, an American car manufacturer, a luxury retail store, and a U.S.-hallmark media and entertainment company, all of which were Fortune 500 companies. Some of these companies were purposely targeted by a group of DPRK IT workers, who maintained postings for companies at which they wanted to insert IT workers. Chapman ran a “laptop farm,” hosting the overseas IT workers’ computers inside her home so it appeared that the computers were located in the United States, and also received and forged payroll checks and received direct deposits of the overseas IT workers’ wages from the U.S. companies into her U.S. financial accounts. The overseas IT workers also attempted to gain employment and access to information at two different U.S. government agencies on three different occasions, although these efforts were generally unsuccessful. The overseas IT workers associated with Chapman’s cell were paid millions for their work, much of which has been falsely reported to the IRS and the Social Security Administration in the name of the actual U.S. persons whose identities were stolen or borrowed. Chapman also allegedly conspired with the John Doe defendants to commit money laundering by conducting financial transactions under aliases to receive money generated by the scheme and transfer those funds outside of the United States, in an attempt to hide that these were proceeds of the IT workers’ fraud. Chapman and her co-conspirators allegedly compromised more than 60 identities of U.S. persons, impacted more than 300 U.S. companies, caused false information to be conveyed to DHS on more than 100 occasions, created false tax liabilities for more than 35 U.S. persons, and resulted in at least $6.8 million of revenue to be generated for the overseas IT workers. The department seized funds related to scheme from Chapman as well as wages and monies accrued by more than 19 overseas IT workers. “Using the stolen identities of U.S. citizens is a crime by itself, but when you use those identities to procure employment for foreign nationals with ties to North Korea at hundreds of U.S. companies, you have compromised the national security of an entire nation,” said Chief Guy Ficco of IRS-CI. “For more than 100 years, IRS Criminal Investigation special agents have been following the money, and their financial expertise has once again stopped criminals in their tracks.” Chapman is charged with conspiracy to defraud the United States, conspiracy to commit wire fraud, conspiracy to commit bank fraud, aggravated identity theft, conspiracy to commit identity fraud, conspiracy to launder monetary instruments, operating as an unlicensed money transmitting business, and unlawful employment of aliens. The John Does are charged with conspiracy to commit money laundering. If convicted, Chapman faces a maximum penalty of 97.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count, and the John Does face a maximum penalty of 20 years in prison. The FBI Phoenix Field Office and IRS-CI Phoenix Field Office are investigating this case, with assistance from the FBI Chicago Field Office. Assistant U.S. Attorney Karen P. Seifert for the District of Columbia and Trial Attorney Ashley R. Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas. The U.S. Attorney’s Office for the District of Arizona and Trial Attorney Gregory Nicosia of the National Security Division’s National Security Cyber Section also provided valuable assistance. Didenko Complaint, Domain Seizure, and Premises Warrants According to the criminal complaint, Didenko allegedly engaged in a multi-year scheme to create accounts at U.S.-based freelance IT job search platforms and with U.S. money service transmitters in the names of false identities, including identities of U.S. persons, and sold these accounts to overseas IT workers. Didenko ran a website, upworksell.com, which advertised creating, buying, and renting accounts at U.S. websites using false identities, and also advertised “Credit Card Rental” in the European Union and the United States and SIM card rental for cellular phones. Didenko allegedly offered a full array of services to allow an individual to pose under a false identity and market themselves for remote IT work with unsuspecting companies. As stated, Didenko’s domain was seized as part of the case. According to the affidavit in support of the complaint, Didenko is alleged to have managed as many as approximately 871 “proxy” identities, provided proxy accounts for three freelance U.S. IT hiring platforms, and provided proxy accounts for three different U.S.-based money service transmitters. In coordination with his co-conspirators, Didenko facilitated the operation of at least three U.S.-based laptop farms, at one point hosting approximately 79 computers. Didenko sent or received $920,000 in U.S. dollars payments since July 2018. Didenko acknowledged in messages that he believed he was assisting North Korean IT workers. One of Didenko’s overseas IT worker customers also requested that a laptop be sent from one of Didenko’s U.S. laptop farms to Chapman’s laptop farm, showing the interconnectivity of these cells within the DPRK overseas IT worker network. Search warrants of Didenko’s laptop farms were executed in early May 2024. If convicted, Didenko faces a maximum penalty of 67.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count. The FBI New York Field Office is investigating this case. The FBI Norfolk and San Diego Field Offices and the Jefferson City, Tennessee, Resident Agency provided assistance in executing search warrants. Assistant U.S. Attorneys Karen P. Seifert and Steven Wasserman for the District of Columbia are prosecuting the case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas and the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorney’s Offices for the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, Justice Department’s Office of International Affairs, and Trial Attorney Jacques Singer-Emery of the National Security Division’s National Security Cyber Section provided valuable assistance as well. *** The FBI, along with the Departments of State and Treasury, issued a May 2022 advisory to alert the international community, private sector, and public about the North Korea IT worker threat. Updated guidance was issued in October 2023 by the United States and the Republic of Korea (South Korea), which includes indicators to watch for that are consistent with North Korea IT worker fraud. An indictment and a criminal complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Two Men Indicted for Scheme to Tamper with  Pollution Control Systems in Violation of the Clean Air Act

component: USAO - Washington, Eastern

body_text: Spokane, Washington - A federal grand jury for the Eastern District of Washington returned an indictment charging Pavel Ivanovich Turlak; his companies PT Express LLC, Spokane Truck Service LLC, and Paul’s Trans LLC; Ryan Hugh Milliken; and his company, Hardway Solutions; with six counts of violating the Clean Air Act for a scheme to interfere with pollution control software in diesel trucks. Turlak was also charged with six counts of fraud in connection with COVID-19 relief funding. Turlak’s companies are based in Spokane, Washington. Milliken’s company is based in Mary Esther, Florida. The indictment alleges that between August of 2017 and November of 2023, Turlak and Milliken tampered with emission control monitoring devices and methods on diesel pickup trucks, including both software and hardware modifications. The illegal software modifications involved “tuning” or “deleting” the trucks by tampering with the “on board diagnostic” (OBD) systems and disabling emission controls, which allowed the trucks to emit substantially more pollutants into the atmosphere. The indictment alleges Milliken created and sold custom software “delete tunes” to Turlak for specific vehicles based on specifications provided by Turlak. Turlak then charged as much as $3,500 to diesel truck owners to “delete” and “tune” their vehicles by tampering with and rendering inaccurate required monitoring devices. Despite the harm to the environment, diesel vehicle owners sometimes seek such illegal modifications to avoid the costs of maintaining and repairing emission control components and to increase speed and fuel efficiency. The indictment also alleges Turlak falsely and fraudulently sought and received more than $300,000 in federal funding that was designated to go to eligible small businesses during the COVID-19 pandemic. The indictment alleges Turlak and his businesses were not eligible to receive this funding, but falsely certified that they were in order to obtain it. “Exposure to diesel exhaust can lead to serious health conditions like asthma and respiratory illnesses and can worsen existing heart and lung disease, especially in children and the elderly. Pollution control systems are in place to protect us,” stated Vanessa R. Waldref, United States Attorney for the Eastern District of Washington. “My office is fully committed to enforcing laws to achieve environmental justice and making Eastern Washington a clean, safe place to live and work.” This case was investigated by the EPA’s Criminal Investigation Division with assistance from the Small Business Administration, Office of Inspector General, and the Spokane Police Department. Assistant United States Attorneys Dan Fruchter and Jacob Brooks are prosecuting the case. U.S. Attorney Waldref further wishes to thank the U.S. Attorney’s Office for the Northern District of Florida for its coordination and support. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Laredoan sent to prison for producing child pornography of sexual abuse of minor relative

component: USAO - Texas, Southern

body_text: LAREDO, Texas – A 26-year-old man has been ordered to prison for production and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani. Aaron Negrete pleaded guilty March 7, 2023. U.S. District Judge Keith P. Ellison has now sentenced Negrete to 225 and months for the production and possession of child pornography convictions, respectively. They will run concurrently for a total 225-month-term of imprisonment. At the hearing, the court also heard additional information including testimony from the minor victim’s mother, detailing the impact of Negrete’s actions. In handing down the prison terms, the court noted severity of the his crimes. Negrete was further ordered to pay $30,000 in restitution to known victims of the child pornography possessed and will serve five years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Negrete will also be ordered to register “The homes of relatives are supposed to be safe places, especially for kids, but Aaron Negrete used his residence to harm his relative numerous times, committing the most heinous acts one can perpetrate on another, let alone a child," said Hamdani. "He filmed himself molesting the minor then shared the videos and images on the internet, extending the child’s victimization into perpetuity. Our hope is this significant sentence can give the victim some peace knowing Negrete is not lurking in anyone’s home, but instead behind bars for nearly 20 years to come.” “The Aaron Negrete sentence today sets the tone for how we will handle child predators in our state,” said Special Agent in Charge Craig Larrabee, Homeland Security Investigations (HSI) San Antonio. “If you harm a child, we will investigate you, we will arrest you, and we will bring the full weight of the law against you. HSI urges our South Texas community to remain vigilant against child predators and to immediately report suspected cases of child exploitation to HSI.” The investigation began when authorities learned an IP address associated with Negrete had uploaded child pornography online. On Oct. 12, 2022, law enforcement executed a search warrant at his home. At that time, they found and seized several electronic devices which contained child pornography and took Negrete into custody. He ultimately admitted to downloading an application he used to search for child pornography which included abuse of babies and toddlers. The investigation further revealed he had sexually abused a minor relative. He recorded himself doing so and shared the recordings and photographs online. The child had visited Negrete and stayed at his residence in Laredo. On more than 50 instances, Negrete forced the victim to rub his genitals and took naked pictures, among other things. The minor was told to keep it a secret to prevent “something bad” from happening. Negrete will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department as part of the Child Exploitation Task Force which also includes FBI, Texas Department of Public Safety, U.S. Marshals Service and United Independent School District Police. Assistant U.S. Attorney Michael Makens prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources link on that page.


title: Man Charged with Murder in Relation to Methamphetamine Trafficking

component: Criminal Division

body_text: A California man made his initial appearance in the District of Hawaii today to face charges related to his role in the murder of another man in connection with drug trafficking. According to court documents, on March 27, 2021, Filimone Tavake, 36, of San Francisco, allegedly killed a Hawaii resident at the victim’s home in connection to a drug distribution conspiracy. Tavake was arrested on March 22 in California. Tavake is charged with carry, use and discharge of a firearm during and in relation to a drug trafficking crime; causing the death of a person through use of a firearm; killing while engaged in conspiracy to distribute and possess with intent to distribute methamphetamine; and conspiracy to distribute and possess with intent to distribute methamphetamine. If convicted, Tavake faces a mandatory minimum sentence of 20 years in prison and a maximum penalty of life in prison. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Clare E. Connors for the District of Hawaii; Special Agent in Charge Steven Merrill of the FBI; and Chief Arthur “Joe” Logan of the Honolulu Police Department made the announcement. The FBI and Honolulu Police Department are investigating the case. Trial Attorney Christina Taylor of the Criminal Division’s Violent Crime and Racketeering Section and the U.S. Attorney’s Office for the District of Hawaii 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: Teen Indicted on Armed Carjacking and Other Violent Crimes Arising from a Crime Spree in August 2023

component: USAO - District of Columbia

body_text: WASHINGTON – Montello Washington, 17, of Washington, D.C., was indicted today and charged as an adult with armed carjacking, armed robbery, assault with a dangerous weapon and related charges stemming from a spree of offenses occurring between August 15, 2023 and August 16, 2023, U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD) announced. Washington was indicted by a grand jury in the Superior Court of the District of Columbia on one count of armed carjacking, two counts of armed robbery, two counts of assault with a dangerous weapon, unauthorized use of a vehicle in order to commit crimes of violence, and possession of a firearm during crimes of violence. Washington is scheduled to be arraigned on May 20, 2024, before the Honorable Lynn Leibovitz. According to the government’s evidence, late in the evening of August 15, 2023, Washington and several accomplices robbed a man at gunpoint while the victim was on his way to work. During the next several hours, into the early morning on August 16, 2023, Washington and his accomplices committed a series of armed robberies, armed assaults, in which they fired gunshots at two victims, and an armed carjacking. Later in the evening on August 16, 2023, after MPD officers saw the stolen car used to commit these offenses in Southeast DC, they attempted to stop it. The driver led MPD on a pursuit through the District, into Maryland, and back into the District before three people eventually bailed out of the car. Police apprehended Washington and another person after they fled from the vehicle. This case is being investigated by the Metropolitan Police Department (MPD). This case is being prosecuted by AUSAs Stephanie Dinan and Sabena Auyeung of the U.S. Attorney’s Office for the District of Columbia. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.


title: Two Foreign Nationals Arrested for Allegedly Laundering At Least $73 Million Through Shell Companies Tied to Cryptocurrency Investment Scams

component: USAO - California, Central

body_text: LOS ANGELES – A grand jury indictment was unsealed today in U.S. District Court charging two Chinese nationals, one of them a San Gabriel Valley resident, alleging they played leading roles in a scheme to launder proceeds from cryptocurrency investment scams. Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to the Central District of California. Yicheng Zhang, 38, a Chinese national and resident of Temple City, was arrested and arraigned today in Los Angeles. Li and Zhang are both charged with conspiracy to commit money laundering and six substantive counts of international money laundering. If convicted, the defendants face a maximum penalty of 20 years in prison on each count. Zhang pleaded not guilty today to the charges and a July 9 trial date was scheduled. Zhang, who remains in federal custody, has a detention hearing scheduled for May 21. Li, whom a federal magistrate judge has ordered jailed without bond, is scheduled for arraignment on May 20. “Sophisticated financial scams such as these are a dangerous threat to the financial wellbeing of all Americans,” said United States Attorney Martin Estrada. “While my office will continue to root out and punish these deceitful schemes, I encourage everyone to educate themselves on pig butchering and other kinds of financial fraud to protect their families against such predatory activity. Vigilance is key." “Cryptocurrency investment scams exploit the borderless nature of virtual currency and online communications to defraud victims,” said Deputy Attorney General Lisa Monaco. “While fraud in the crypto markets takes on many forms and hides in many far-off places, its perpetrators aren’t beyond the law’s reach. Today, we announce the arrests of two foreign nationals charged with laundering funds to the tune of at least $73 million tied to an international crypto investment scam. These arrests—made possible through the assistance of our international and U.S. partners—reflect the Justice Department’s ongoing commitment to disrupting the entire cybercrime ecosystem and stopping fraud across all financial markets.” According to court documents, Li, Zhang, and other conspirators allegedly managed an international syndicate that laundered proceeds of cryptocurrency investment scams, which are also known as “pig butchering.” Victims of the schemes under investigation were fraudulently induced into transferring millions of dollars to U.S. bank accounts opened in the names of dozens of shell companies whose sole apparent purpose was to facilitate the laundering of fraud proceeds. A network of money launderers then facilitated the transfer of those funds to other domestic and international bank accounts and cryptocurrency platforms in a manner designed to conceal the source, nature, ownership, and control of the funds. The fraud scheme involved more than $73 million laundered through U.S. financial institutions to bank accounts in The Bahamas, and converted to the virtual asset USDT, or Tether. A cryptocurrency wallet involved in the scheme received more than $341 million in virtual assets. Li and Zhang allegedly instructed co-conspirators in the laundering network to open bank accounts in the names of various shell companies. Once the victims sent funds to the shell companies, Li and Zhang monitored the lower-level co-conspirators who transferred the proceeds overseas to bank accounts at Deltec Bank in The Bahamas. One of the Deltec Bank accounts was operated with the financial assistance of Li. The funds were then allegedly converted into cryptocurrency and sent to virtual-asset wallets, including at least one controlled by Li. Zhang allegedly also directly received victim funds. Communications revealed extensive coordination to facilitate the international money laundering, including chats discussing the commission structure for the network, the various shell companies used, victim information, and at least one video from a conspirator calling a U.S. financial institution. “As alleged in the indictment, Li and Zhang helped launder millions of dollars obtained from victims of cryptocurrency investment scams,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Money laundering is critical to the success of these scams, allowing fraudsters to quickly move illicit proceeds and try to make them appear legitimate. The arrests announced today demonstrate the Criminal Division’s commitment to disrupting the sophisticated financial networks on which these scams depend and holding those involved accountable, no matter where they may be found.” “Complex financial fraud schemes such as pig butchering present a clear and present threat to the financial infrastructure of the United States as countless numbers of Americans continue to be victimized by this predatory activity,” said Assistant Director of Investigations Brian Lambert of the U.S. Secret Service. “In 2023, the Secret Service with our partners recovered more than $1.1 billion in financial fraud and we are on pace to exceed that number this year. A special thank you to the special agents, support teams, and our prosecutorial partners for their exceptional work in bringing this case to justice.” An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The U.S. Secret Service’s Global Investigative Operations Center is investigating the case. The Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, Dominican Republic National Drug Directorate Sensitive Investigative Unit and Fugitive Task Force, U.S. Marshals Service, Drug Enforcement Administration, and the Justice Department’s Office of International Affairs provided assistance. Assistant United States Attorneys Maxwell Coll of the Asset Forfeiture and Recovery Section and Nisha Chandran of the Cyber and Intellectual Property Crimes Section and Trial Attorney Stefanie Schwartz of the Justice Department’s National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets. If you or someone you know is a victim of a cryptocurrency investment fraud, report it to www.IC3.gov . In your complaint, please reference “Pig Butchering PSA.” Include as much information as possible in your report, including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.


title: Secret Service Seizes a Web Domain Used in Furtherance of a Cryptocurrency “Pig Butchering” Scheme

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – The U.S. Secret Service has seized a web domain used in a recent cryptocurrency confidence crime known as “pig butchering.” United States Attorney Carla B. Freedman; William Mancino, Special Agent in Charge, Criminal Investigative Division of the U.S. Secret Service; and James Bensley, Resident Agent in Charge of the U.S. Secret Service’s Albany Resident Office, made the announcement. In pig butchering schemes, scammers encounter victims through a variety of ways, including on dating applications and social media websites, and even random text messages masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme running fraudulent cryptocurrency investment platforms, where victims are persuaded to invest money. Once the money is sent to the fake investment application, the scammer vanishes, taking all the money with them, often resulting in significant losses for the victim. According to court records, between about August 2022 and July 2023, scammers induced a Warren County victim to wire monies to the now-seized domain OKEX-NFT.net. The scammers — using the confidence-building techniques described above — convinced the victim that he/she was investing in a legitimate cryptocurrency opportunity. After the victim transferred investments into the deposit addresses that the scammers provided in connection with the seized domain name, the victim’s funds were immediately transferred through numerous bank accounts in an effort to conceal the source of the funds. In total, the victim lost over $341,000. Assistant U.S. Attorneys Elizabeth Conger and Rick Belliss represented the U.S. Attorney’s Office in this matter. Related court documents and information are located on the online docket for the United States District Court for the Northern District of New York (available via www.pacer.gov ), by searching for Case No. 24-MJ-00038 (DJS). If you believe you are a victim of this type of scheme, please contact CryptoFraud@SecretService.gov or IC3.gov to file a report. Please provide detailed information in your report, including any purported investment websites visited, telephone numbers, email accounts, and social media profiles used by scammers, and any cryptocurrency addresses, transaction hashes, and dates of transactions. Your responses are voluntary. Based on the information provided, you may be contacted by the Secret Service or another law enforcement agency and asked to provide additional information. This case is part of the Department of Justice’s Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.


title: Trio convicted of a series of Suffolk armed robberies and attempting to cover their trail

component: Federal Bureau of Investigation (FBI)

body_text: NORFOLK, Va. – A federal jury convicted three Virginians yesterday for a series of armed robberies in Suffolk and attempting to dispose of evidence. According to court records and evidence presented at trial, from November 2020 through February 2022, Harvey Lee Lewis IV, aka Hurricane, 36, of Suffolk, and Dennis Lee Adamson Jr., 29, of Portsmouth, planned and carried out a series of armed robberies of convenience stores. In several of the robberies, Lewis discharged his semiautomatic firearm into the ceiling of the store as he entered, terrifying the employees and customers. Lewis and Dennis Adamson robbed four convenience stores between Nov. 10, 2020, and Nov. 20, 2020, including two stores on the same date. Over a year later, on Feb. 3, 2022, the two men robbed the EZ Food Mart & Deli in Suffolk, during which Dennis Adamson brandished a pistol at customers and Lewis fired several rounds, narrowly missing a store employee, before Lewis grabbed a cash register and the two men fled the store. In addition to these robberies, Lewis and Dennis Adamson committed robberies separately. Lewis robbed a 7-Eleven convenience store on Feb. 1, 2022. On Oct. 14, 2022, several months after Lewis had been identified and arrested, Dennis Adamson robbed a Dollar General store in Portsmouth. On Feb. 15, 2022, while he was in pre-trial detention, Lewis had a video call with Ieisha Marie Adamson, 32, of Portsmouth. During the call, Lewis directed Ieisha Adamson to remove items from his vehicle, including a box of ammunition from a secret compartment in the vehicle, which law enforcement had not discovered during a search of the vehicle the week prior. Lewis then directed Ieisha Adamson to leave the scene. When police encountered Ieisha Adamson approximately two hours later, she no longer had the box of ammunition. Lewis was convicted of conspiracy to interfere with commerce by means of robbery, six counts of interference with commerce by means of robbery, three counts of possession of a firearm in furtherance of a crime of violence, and felon in possession of a firearm and ammunition. Lewis faces a mandatory minimum of 24 years in prison and a maximum penalty of life in prison when sentenced on Sept. 19. Dennis Adamson was convicted of conspiracy to interfere with commerce by means of robbery, six counts of interference with commerce by means of robbery, and two counts of possession of a firearm in furtherance of a crime of violence. Dennis Adamson faces a mandatory minimum of 17 years in prison and a maximum penalty of life in prison when sentenced on Sept. 19. Ieisha Adamson was convicted of accessory after the fact and misprision of a felony, and faces a maximum penalty of 10 years in prison when sentenced on Sept. 19. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and James Buie, Interim Chief of Suffolk Police, made the announcement after U.S. District Judge Jamar K. Walker accepted the verdict. The U.S. Attorney’s Office thanks the Portsmouth Police Department and Western Tidewater Regional Jail for their assistance in this investigation. Assistant U.S. Attorneys Megan M. Montoya and Anthony Mozzi are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-62.


title: Federal grand jury indicts three additional  defendants for their roles in scheme that defrauded thousands of companies out of millions of dollars

component: USAO - New York, Western

body_text: ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a superseding indictment charging John Engler, Alec Dierna, And Nicholas Scarantino with conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine. Also named in the superseding indictment are three defendants previously charged in the case: Tommy Lee Coburn, Kyle Paul Edward Gibson, and Heather Dierna. Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the superseding indictment, in January 2019, defendant Engler began mailing fictitious invoices to primarily large companies located throughout the United States for cleaner/degreaser products that the victim companies would believe they had previously ordered and received. In August 2020, Engler recruited defendant Dierna to participate in his scheme, which began the conspiracy. Defendants Coburn and Heather Dierna joined the conspiracy in January 2021, Gibson in February 2021, and in July 2021, Scarantino joined the conspiracy. Large companies were targeted because it was less likely during the COVID-19 pandemic that account payable departments in these companies would question whether cleaner/degreaser products listed on the fraudulent invoices were ordered and received. Large companies were targeted because the relatively small amounts owed on the fraudulent invoices would be less likely to raise questions regarding the legitimacy of the invoices, and because the accounts payable departments do not order products for their companies, and would be less likely to question or be suspicious of the grossly inflated prices for the cleaner/degreaser products. Fraudulent invoices were mailed from Florida and from Rochester. Intended to look like legitimate invoices, the defendants placed statements that the documents were merely “solicitations,” and that there was no obligation to pay the amounts listed on the fraudulent invoices, in hard-to-find places on page two of the invoice. The statements were inserted so that if the defendants were ever later questioned, they could falsely claim that the intended purpose of the documents was merely to “solicit” future business from the victim companies. As a result of the conspiracy, approximately 5,458 victim companies were tricked into believing that they had received a legitimate invoice for cleaner/degreaser products, paying approximately $8,010,543.50 to the sham companies. After receiving payment, the defendants attempted to cover up their fraud by having inexpensive cleaner/degreaser products delivered to the victim companies. Several companies in the Western District of New York were victimized. The companies are located in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls. The superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division, and the Internal Revenue Service-Criminal Investigations, under the direction of Special Agent-in-Charge Thomas M. Fattorusso. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Jamestown man going to prison for more than 19 years for selling heroin and fentanyl which resulted in two deaths

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Steven Mojica Medina, 36, of Jamestown, NY, who was convicted of possession with intent to distribute, and distribution of, heroin, fentanyl, and acetyl fentanyl, and being a felon in possession of a firearm and ammunition, was sentenced to serve 235 months in prison by U.S. District Judge Richard J. Arcara. Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on August 30, 2018, an individual identified as J.H., fatally overdosed after ingesting a substance containing fentanyl, and acetyl fentanyl. Medina provided J.H. with the fentanyl and fentanyl analogue mixture shortly before J.H. died. Approximately a week later, on September 9, 2018, an individual identified as J.T. fatally overdosed after ingesting a substance containing heroin, fentanyl, and acetyl fentanyl. Medina provided the substance to a third party who then provided it to J.T. On December 1 and 2, 2020, the Jamestown Police Department conducted controlled purchases of heroin and fentanyl from Medina. Subsequently, a search warrant was executed at Medina’s Euclid Avenue residence during which investigators recovered two loaded firearms, a drug ledger, 48 bags of fentanyl weighing 1.76 grams, and cocaine. On November 1, 2021, Medina was pulled over in his vehicle by the Jamestown Police Department. Officers recovered a 9mm semi-automatic pistol, six magazines and approximately 167 rounds of 9mm ammunition. Medina also had 24 wrapped baggies of crack cocaine weighing 3.8 grams. In July 2015, Medina was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm. The sentencing is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division. # # # #


title: Flushing, NY, man arrested charged with possession and importation of MDMA

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Yong Chen, 37, of Flushing, NY, was arrested and charged by criminal complaint with possession with intent to distribute MDMA and importation of MDMA. The charges carry a maximum penalty of 20 years in prison and a fine of $1,000,000. Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the complaint, in the early morning hours of September 21, 2022, U.S. Border Patrol Buffalo Sector spotted a drone launch originating at a residence in Youngstown, NY. The drone traveled across the Lower Niagara River into Ontario, Canada, and landed in Niagara-on-the-Lake, Ontario, Canada, before returning a short time later to its original launch location. Law enforcement responded to the residence and observed the drone hovering in the back yard with an attached package hanging from the chassis. The drone made landfall near an individual later identified as Edvin Yug. Another individual at the residence fled from law enforcement. The package was transported to the Niagara Falls Border Patrol Station for analysis, and found to contain three vacuum sealed bags of MDMA. A short time later, Yong Chen was found by the Niagara County Sheriff’s Department when a 911 call came in for an individual requesting medical attention for shortness of breath. Chen was identified as the individual that fled from the Youngstown residence. A search warrant was executed at the residence, which was barely furnished, with only mattresses on the floor and almost no other furniture. The residence also contained few comfort items and no clothing to suggest individuals were using it as a primary residence. During the search, investigators seized numerous commercial grade drones, controllers, electronics, cell phones and a video hard drive containing the residence’s security camera footage, which showed Chen at the residence around the time the drone was spotted. Additionally, rolls of paracord were found on that were consistent to the cord holding the package of MDMA to the drone. An analysis of the seized drones recovered data indicating that they had conducted five cross-border flights into Canada and back prior to September 21, 2022, all originating and concluding at the Youngstown residence. Chen’s flight records also coincide with the dates of the cross-border drone activity. Chen is not known to have any ties to the Buffalo/Youngstown area. According to the complaint, the Youngstown residence was purchased by a business owned by Chen’s sister. The complaint is a result of an investigation U.S. Border Patrol, Buffalo Sector, under the direction of Chief Patrol Agent Thomas G. Martin, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Filicetti. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Muskogee Resident Pleads Guilty To Robbery In Indian Country

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Patrick Lamar Tims, Jr., age 22, of Muskogee, Oklahoma, pleaded guilty to an Information of one count of Robbery in Indian Country. The Information alleged that on or about January 16, 2024, Tims took by force, violence, and intimidation, a thing of value, namely, United States currency, from a Family Dollar located in Muskogee, Oklahoma. The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma. The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The Honorable Jason A. Robertson, United States Magistrate Judge for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Tims was remanded to the custody of the United States Marshal Service pending sentencing. Assistant United States Attorney Joshua Satter represented the United States.


title: Muskogee Resident Sentenced For Methamphetamine Distribution

component: USAO - Oklahoma, Eastern

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Karrie Michelle Brown, age 32, of Muskogee, Oklahoma, was sentenced to time served for one count of Distribution of Methamphetamine. The charges arose from investigations by the Oklahoma Bureau of Narcotics and the Oklahoma State Bureau of Investigation. On March 27, 2023, Brown pleaded guilty to one count of Distribution of Methamphetamine. According to investigators, Brown sold approximately 55.25 grams of methamphetamine on December 11, 2019. The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Assistant United States Attorney Joshua Satter represented the United States.


title: U.S. Attorney Jaime Esparza Recognizes National Police Week

component: USAO - Texas, Western

body_text: SAN ANTONIO – In honor of National Police Week, U.S. Attorney Jaime Esparza recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. The week is observed Saturday, May 11 through Friday, May 17, 2024. “As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.” “As U.S. Attorney for the Western District of Texas, I am grateful to our federal, state, local and tribal law enforcement partners for their daily commitment to protecting our citizens and upholding the rule of law,” said Esparza. “We see in our communities across the United States each and every day, law enforcement officers place their lives on the line to prioritize the safety and security of our neighbors, our friends, and our loved ones.” In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. In the past year, two law enforcement officers lost their lives in the line of duty while serving in the Western District of Texas. Sergeant Joshua Clouse, a Cameron Police Officer and U.S. Army veteran, was fatally shot by a subject while executing a search warrant in Cameron, south of Waco in May 2023. In November, Austin Police Officer Jorge Pastore was killed, and another officer injured during a SWAT standoff with a violent assailant. Pastore had previously been an Emergency Medical Technician (EMT) in Parkland, Florida, and responded to the shooting at Marjory Stoneman Douglas High School in 2018. This week, we remember and honor their sacrifice along with the sacrifice of their families and of too many law enforcement officers before them. Every day, we must be grateful for the commitment of our law enforcement officers to protecting our citizenry, and for their selfless service to our communities. On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/ . To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org . ###


title: Curwensville Man Charged for Possession with Intent to Distribute Methamphetamine

component: USAO - Pennsylvania, Western

body_text: JOHNSTOWN, Pa. – On May 14, 2024, a resident of Curwensville, Pennsylvania, was indicted by a federal grand jury in Johnstown on a charge of violating a federal narcotics law, United States Attorney Eric G. Olshan announced today. The one-count Indictment named Jason Lentz, 30, as the sole defendant. According to the Indictment, in and around January 2024, Lentz possessed with intent to distribute 50 grams or more of methamphetamine. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government. The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation leading to the Indictment. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Nigerian national sent to prison for conducting multimillion-dollar advance-fee scheme

body_text: HOUSTON – A 57-year-old man has been sentenced for his role in a fraud conspiracy perpetrated against victims in more than 20 countries, announced U.S. Attorney Alamdar S. Hamdani. Uche Victor Diuno pleaded guilty Feb. 1. U.S. District Judge Alfred H. Bennett has now ordered Diuno to serve 60 months months in federal prison and to pay $5,693,648 in restitution. Not a U.S. citizen, Diuno is expected to face removal proceedings following his imprisonment. At the hearing, the court recounted Diuno’s recent testimony in which Diuno detailed his own significant role in the fraud. Diuno himself told the court he regretted his actions and the great harm he caused to victims of the scheme. “Diuno helped orchestrate a team of fraudsters impersonating bank executives to pitch fake investments and fake payouts to real victims around the world,” said Hamdani. “This international operation, supported by a cadre of co-conspirators, stole millions from victims as far off as Asia and as close as America, all to funnel money and Land Rovers to his boss in Nigeria. Now, the only traveling Diuno will do will be from a prison yard back to his cell.” Diuno helped orchestrate a scam in which fraudsters abroad lured victims with false promises of millions in investment funding and inheritances. His co-conspirators posed as executives and employees of well-known U.S. banks to deceive victims into making payments to secure purported investment and money transfer agreements. Other members of the conspiracy then laundered these payments through U.S. bank accounts and directed them back to the scheme’s leaders in Nigeria. Diuno admitted he and his co-conspirators used multiple aliases to convince victims the scam was authentic. Diuno also admitted to his role in the laundering of victim funds. Acting on instructions from the scheme’s leader, Diuno directed a co-conspirator to disburse victim funds after receiving them. This included transferring funds to other bank accounts through currency exchangers and purchasing vehicles that were shipped back to scammers in Nigeria. From October 2014 to September 2018, Diuno and his co-conspirators caused losses of nearly $5.7 million. “Uche Victor Diuno conspired with criminal associates who established false web domains and capitalized on sham visits to U.S. embassies around the globe to defraud millions of dollars from victims in over 20 countries,” said FBI Houston Special Agent in Charge Douglas Williams. “This complex, international investment fraud was identified, investigated, and ultimately eradicated due to the diligent work of FBI Houston agents and our key partners at the Department of State’s Office of Inspector General (DOS-OIG). We encourage all Americans to protect themselves from fraudsters like Uche Diuno by visiting www.ic3.gov for the most relevant information about trending scams and protective tips to combat swindles.” “DOS-OIG is unwavering in our commitment to investigate and bring to justice individuals engaged in international fraud schemes such as Uche Victor Diuno,” said Special Agent in Charge Christopher Hileman, DOS-OIG. “We greatly appreciate the work of our partners at the FBI Houston Field Office, Southern District of Texas, Criminal Division’s Fraud Section and their diligent and professional investigation and prosecution of Diuno.” Diuno will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. FBI and DOS-OIG conducted the investigation. Assistant U.S. Attorney Christian Latham and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section prosecuted the case.


title: U.S. Attorney Charges Man For Stealing Police Firearm And Firing At Lansing Police Officer During Arrest

component: USAO - Michigan, Western

body_text: GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Andrial Ched Ortiz, 29, of Lansing, was charged by indictment with being a felon in possession of firearms. In the course of his arrest on April 10, 2024, Ortiz repeatedly tried to steal police weapons from Lansing Police Department officers. During his struggle, Ortiz possessed a Glock 43X, which he fired, injuring an LPD police officer working to arrest him. “Today’s charge reflects our continued efforts to keep the streets safe from the danger presented by those who cannot lawfully possess firearms,” said U.S. Attorney Mark Totten . “I’m thankful that the officers on scene were able to minimize the damage caused and that everyone is safe.” The indictment alleges that Ortiz possessed two firearms on April 10, 2024, when he could not lawfully do so following a previous felony conviction. His initial appearance in the Western District of Michigan is set for Monday, May 20, 2024. Gun violence is an acute problem across the United States. According to the Centers for Disease Control and Prevention , the U.S. firearm homicide rate in 2021 was the highest documented since 1993. While the numbers have slightly declined since 2021, they remain high. Resources and information on the safe storage of firearms can be found by reviewing the U.S. Department of Justice Safe Storage of Firearms guide , Centers for Disease Control and Prevention fact sheet , and the Bureau of Alcohol, Tobacco, Firearms and Explosives pamphlet . Anyone who possesses a gun must follow all local, state, and federal laws. This case was investigated by the Lansing Police Department, Michigan State Police, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law. ###


title: Three Kalamazoo Drug Traffickers Sentenced for Distributing Fentanyl, Other Illegal Substances

body_text: GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Terrance Moore, 36, was sentenced to 21 years and 8 months in prison for his part in a drug trafficking conspiracy. Moore is the last of three Kalamazoo-based drug traffickers in this case to be sentenced within the last week. “These Kalamazoo defendants trafficked illegal drugs, including fentanyl, which is driving the ongoing epidemic of drug poisoning deaths across the United States,” said U.S. Attorney Mark Totten . “While we will never prosecute our way out of this epidemic, we will hold those who push these poisons accountable. These sentences should make clear to every dealer and would-be dealer that making fast cash off this lethal enterprise does not pay.” Terrance Moore, Darnell Moore, 30, and Ellis Hull, 31, worked together to sell methamphetamine, fentanyl, and hydrocodone in the Kalamazoo area between January 2023 and March 2023. When Kalamazoo Department of Public Safety Officers conducted a search of Terrance Moore’s apartment, which was the center of operations for the illicit drug business, they discovered approximately 330 grams of methamphetamine hidden inside a Pacman arcade game, 172 hydrocode pills, and two loaded firearms. Terrance Moore, the leader of the drug-trafficking operation, had 20 baggies of ready-to-sell methamphetamine and 14 baggies of ready-to-sell fentanyl in his pants pockets. Darnell Moore, Terrance Moore’s cousin and drug trafficking business partner, possessed about 27 grams of methamphetamine and over 4 grams of fentanyl, which he intended to sell. For his part of the drug conspiracy, Darnell Moore was sentenced to 19 and a half years in the Bureau of Prisons. Ellis Hull, whose job was to help deliver drugs to costumers and collect money, was sentenced to 14 years’ imprisonment. “The Kalamazoo Valley Enforcement Team (KVET) is extremely pleased with these sentences,” said KVET Captain Michael Ferguson . “We will continue to focus our enforcement efforts on those who are selling deadly drugs and carrying illegal firearms to help keep our community safe.” “Moore was the head of an organization responsible for distributing dangerous methamphetamine and fentanyl throughout west Michigan,” said DEA Special Agent in Charge Orville O. Greene . “At the time of his arrest, Moore had enough fentanyl to cause an untold amount of suffering and death. This sentence should send a clear message, those who choose to profit from the suffering of others will be brought to justice.” This case was investigated by the Kalamazoo Department of Public Safety and Drug Enforcement Administration. ###


title: U.S. Attorney Kavanaugh Recognizes Police Week,  Attends Fallen Officer Memorial in Charlottesville

component: USAO - Virginia, Western

body_text: CHARLOTTESVILLE, Va.— In honor of National Police Week, U.S. Attorney Christopher R. Kavanaugh will recognize the service and sacrifice of federal, state, local, and Tribal law enforcement. The week will be observed Saturday, May 11 through Friday, May 17, 2024. “As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.” “Each year during Police Week we gather together as a law enforcement community to pay tribute to those men and women who have sacrificed their lives keeping our communities safe,” United States Attorney Kavanaugh said today. “Police work has never been more complex and we have never been more thankful each and every day to those who take the oath and walk a beat not for glory but rather a sense a duty.” In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. Throughout the week, United States Attorney Kavanaugh will be attending memorial services throughout the Western District of Virginia honoring fallen officers. On Monday, United States Attorney Kavanaugh attended a fallen officers memorial on the downtown mall in Charlottesville, Virginia. At that ceremony, officers from the City of Charlottesville Police Department and the Virginia State Police were honored for giving their lives during service to their communities. On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/. To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org


title: Two Brothers Arrested For Attacking The Ethereum Blockchain And Stealing $25 Million In Cryptocurrency

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Lisa Monaco, the Deputy Attorney General of the United States; and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The charges in the Indictment arise from an alleged novel scheme by the defendants to exploit the very integrity of the Ethereum blockchain to fraudulently obtain approximately $25 million worth of cryptocurrency within approximately 12 seconds. ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO were arrested yesterday in Boston, Massachusetts, and New York, New York, respectively, and will be presented this afternoon before U.S. Magistrate Judge Paul G. Levenson for the District of Massachusetts and U.S. Magistrate Judge Valerie Figueredo for the Southern District of New York. U.S. Attorney Damian Williams said: “Today, my Office indicted two brothers—Anton Peraire-Bueno and James Peraire-Bueno—for conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, all stemming from their alleged scheme to exploit the Ethereum blockchain and to obtain about $25 million worth of cryptocurrency from it. As we allege, the defendants’ scheme calls the very integrity of the blockchain into question. The brothers, who studied computer science and math at one of the most prestigious universities in the world, allegedly used their specialized skills and education to tamper with and manipulate the protocols relied upon by millions of Ethereum users across the globe. And once they put their plan into action, their heist only took 12 seconds to complete. This alleged scheme was novel and has never before been charged. But as the Indictment makes clear, no matter how sophisticated the fraud or how new the techniques used to accomplish it, the career prosecutors of this Office will be relentless in pursuing people who attack the integrity of all financial systems.” Deputy Attorney General Lisa Monaco said: “As alleged in today’s indictment, the Peraire-Bueno brothers stole $25 million in Ethereum cryptocurrency through a technologically sophisticated, cutting-edge scheme they plotted for months and executed in seconds. Unfortunately for the defendants, their alleged crimes were no match for Department of Justice prosecutors and IRS agents, who unraveled this first-of-its kind wire fraud and money laundering scheme. As cryptocurrency markets continue to evolve, the Department will continue to root out fraud, support victims, and restore confidence to these markets.” IRS-CI Special Agent in Charge Thomas Fattorusso said: “These brothers allegedly committed a first-of-its-kind manipulation of the Ethereum blockchain by fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims. In this case, IRS-CI New York’s Cyber Unit simply followed the money. Regardless of the complexity of the case, we continue to lead the effort in financial criminal investigations with cutting-edge technology and good-ole-fashioned investigative work, on and off the blockchain.” As alleged in the Indictment: [1] ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO are brothers who studied mathematics and computer science at one of the most prestigious universities in the country. Using the specialized skills developed during their education, as well as their expertise in cryptocurrency trading, ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO exploited the very integrity of the Ethereum blockchain in order to fraudulently obtain approximately $25 million worth of cryptocurrency from victim cryptocurrency traders (the “Exploit”). Through the Exploit, which is believed to be the very first of its kind, ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO manipulated and tampered with the process and protocols by which transactions are validated and added to the Ethereum blockchain. In doing so, they fraudulently gained access to pending private transactions and used that access to alter certain transactions and obtain their victims’ cryptocurrency. Once the defendants stole their victims’ cryptocurrency, they rejected requests to return the stolen cryptocurrency and took numerous steps to hide their ill-gotten gains. ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO meticulously planned the Exploit over the course of several months. Among other things, they learned the trading behaviors of the victim traders whose cryptocurrency they ultimately stole. As they planned the Exploit, they also took numerous steps to conceal their identities and lay the groundwork to conceal the stolen proceeds, including by setting up shell companies and using multiple private cryptocurrency addresses and foreign cryptocurrency exchanges. After the Exploit, the defendants transferred the stolen cryptocurrency through a series of transactions designed to conceal the source and ownership of the stolen funds. Throughout the planning, execution, and aftermath of the Exploit, ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO also searched online for information about, among other things, how to carry out the Exploit, ways to conceal their involvement in the Exploit, cryptocurrency exchanges with limited “know your customer” procedures that they could use to launder their criminal proceeds, attorneys with expertise in cryptocurrency cases, extradition procedures, and the very crimes charged in this Indictment. * * * ANTON PERAIRE-BUENO, 24, of Boston, Massachusetts, and JAMES PERAIRE-BUENO, 28, of New York, New York, are charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison. The statutory maximum sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Williams praised the investigative work of the IRS-CI New York’s Cyber Investigations Unit. Mr. Williams also acknowledged the assistance of the U.S. Customs and Border Protection and the New York City Police Department. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Rushmi Bhaskaran and Danielle Kudla are in charge of the prosecution. The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.


title: Leader of Armed Drug Trafficking Organization Sentenced to Prison

body_text: ALBANY, Ga. – The leader of an armed drug trafficking organization responsible for acquiring at least 250 kilograms of methamphetamine from a prisoner and then distributing the drugs into west central Georgia was sentenced to serve 40 years in federal prison. Cornelius Leonard aka “Tae,” 29, of Grantville, Georgia, was sentenced to serve 480 months in prison to be followed by five years of supervised release on May 14. Leonard previously pleaded guilty to one count of conspiracy to possess with intent to distribute controlled substances; one count of distribution of methamphetamine; and one count of conspiracy to tamper with a witness. The defendant is not eligible for parole. “Cornelius Leonard and those involved in pushing more than 250 kilograms of methamphetamine into Thomaston and Columbus have been held accountable for their part in this armed drug trafficking organization causing harm in these communities,” said U.S. Attorney Peter D. Leary. “Federal, state and local law enforcement collaborated throughout this lengthy and complex investigation to successfully stop a significant criminal organization.” “This sentencing serves to put criminals on notice that if you bring illegal drugs into our communities, we will employ whatever means necessary to find you and bring you to justice no matter where you are,” said FBI Atlanta Supervisory Senior Resident Agent of the Macon Office Robert Gibbs. “This sentencing closes a significant pipeline for dangerous drugs running through the streets of Georgia. We are grateful to the many law enforcement agencies whose coordinated efforts achieved this sentence.” “This successful investigation and prosecution is the result of many law enforcement agencies dedicated to securing our communities; we are grateful for the collaboration and hopeful it will make a difference,” said Upson County Sheriff Dan Kilgore. The following co-defendants have been sentenced: Pedro Barragan Valencia aka “Casper” aka “Bossman,” aka “Mexican Hitman Pete,” 47, of Calhoun, Georgia, was sentenced to serve 400 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute controlled substances; Ramone Zorn aka “Big Razor,” 54, of Thomaston, was sentenced to serve 300 months in prison after he pleaded guilty to distribution of methamphetamine; Kedric Fuller aka “Blakk Ru,” 43, of Woodbury, Georgia, was sentenced to serve 180 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute controlled substances; Horatio Venable aka “Ray Ray,” 27, of Columbus, was sentenced to serve 144 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Markevious Snipes aka “Big Dawg,” 33, of Thomaston, was sentenced to serve 136 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Mechile Hobbs, 50, of Thomaston, was sentenced to serve 120 months in prison after he pleaded guilty to possession with intent to distribute methamphetamine; Darius Wellmaker, 41, of Thomaston, was sentenced to serve 90 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Joshua McAfee, 36, of Thomaston, was sentenced to serve 50 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute controlled substances; Rashard Moreland, 38, of Columbus, was sentenced to serve 40 months in prison after he pleaded guilty to use of a telecommunications facility in furtherance of a drug trafficking crime; Antovious Hunter aka “Ant,” 41, of Columbus, was sentenced to serve 37 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Dustin Robbins, 34, of Columbus, was sentenced to serve 36 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Sabrina Smith, 34, of Thomaston, was sentenced to serve 24 months in prison after she pleaded guilty to distribution of methamphetamine; Natashai Antley, 36, of Thomaston, was sentenced to serve 18 months in prison after she pleaded guilty to use of a communication facility; Nehemiah Johnson, 30, of Thomaston, was sentenced to serve 18 months in prison after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Jennifer Moss, 39, of Molena, Georgia, was sentenced to serve 18 months in prison after she pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Dixie Bailey, 34, of Thomaston, was sentenced to time served after she pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Mark Dean, 46, of Manchester, Georgia, was sentenced to time served after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Ashley Ingram, 37, of Cataula, Georgia, was sentenced to time served after she pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; Krystal Juarez Norman, 34, of Thomaston, was sentenced to time served after she pleaded guilty to conspiracy to possess with intent to distribute heroin; S. Carlton Power, 27, of Manchester, Georgia, was sentenced to time served after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine; and D. Justin Whitten, 38, of Hogansville, Georgia, was sentenced to time served after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. According to court documents, FBI was investigating Leonard for leading an armed drug distribution organization supplying controlled substances in late 2021 and early 2022. Agents made four controlled purchases of methamphetamine from Leonard during that time period. The investigation led to multiple wiretaps on Leonard’s phones. Through these wiretaps, law enforcement agents learned that Leonard was conspiring with co-defendant Valencia—who was an inmate at Calhoun State Prison and a member of the Sureños criminal gang—to acquire large quantities of methamphetamine, heroin, fentanyl and other illegal drugs for distribution in Thomaston, Columbus and other Georgia cities. Valencia supplied Leonard with at least 250 kilograms of methamphetamine. 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 https://www.justice.gov/OCDETF . The case was investigated by FBI and the Upson County Sheriff’s Office with assistance from the Georgia Department of Corrections (GDOC). Criminal Chief Leah McEwen prosecuted the case for the Government.


title: Three Michigan Men Face Federal Charges For Fire At Isle Royale National Park

body_text: MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that his office has filed federal charges against Dylan Kenneth Wagner, 29, of Grand Rapids, MI; Jason Arden Allard, 28, of Macomb, MI; and Scott Warren Allard, 30, of Clinton Township, MI. The men are charged with one count of lighting, tending, or using a fire causing damage to real property and one count of violating conditions established by the superintendent at Isle Royale National Park. Both charges carry a maximum penalty of up to 6 months’ imprisonment, up to a $5,000 fine, up to 5 years’ probation, and mandatory restitution. “Some of America’s most stunning places are right here in Michigan, including Isle Royale National Park,” said U.S. Attorney Mark Totten . “These alleged crimes threatened the safety of park visitors, employees, and the ecosystem that sustains a rich diversity of life. We’re committed to protecting Isle Royale National Park and Michigan’s other national treasures for all to enjoy – today and for generations to come.” The charging documents allege that while in Isle Royale National Park on August 12 and 13, 2022, Wagner and the Allards camped north of the junction of the Mount Franklin and Tobin Harbor Trails. They camped illegally in an area too close to the trail and had a fire that was not in one of the metal rings or grills provided by the park. That fire caused the burning of park property and created a public safety hazard. Established in 1940, Isle Royale National Park is a remote island archipelago in Lake Superior, set aside for the benefit and enjoyment of the public and to preserve and protect its wilderness character, cultural and natural resources, scenery, and ecological processes. Additionally, as a unit of the national park system, Isle Royale National Park provides opportunities for recreation, education and interpretation, and scientific study. Information about Isle Royale and park-specific rules are available online through the National Park Service. This case was investigated by National Park Service law enforcement officers. The charges against Wagner and the Allards are merely accusations; defendants are presumed innocent until and unless proven guilty in a court of law. ###


title: Former Dover Man Sentenced to 57 Months in Federal Prison for the Unlawful Possession of Guns and Ammunition Obtained by a Straw Purchaser

component: USAO - New Hampshire

body_text: CONCORD – A former Dover man was sentenced yesterday in federal court for illegally possessing four firearms and ammunition that he acquired by using a straw purchaser, U.S. Attorney Jane E. Young announces. Christopher T. Brown, 39, was sentenced by U.S. District Court Judge Steven J. McAuliffe to 57 months in prison and 3 years of supervised release. On February 7, 2024, Brown pleaded guilty to being a felon in possession of firearms and ammunition. The straw purchaser in this case plead guilty to two counts of making false statements in connection with acquisition of a firearm and was sentenced on October 25, 2023. “The defendant used a straw purchaser to unlawfully acquire and possess multiple firearms,” said U.S. Attorney Young. “Individuals prohibited from obtaining firearms cannot use straw purchasers to circumvent federal law. The U.S. Attorney’s Office and our federal law enforcement partners will investigate these crimes and bring both the prohibited individuals and the straw purchasers to justice.” “Firearms possessed by convicted felons, often lead to an increase of violent crime within our communities,” said ATF Boston Field Division Special Agent in Charge James M. Ferguson “The sentence imposed yesterday sends a clear message that convicted felons who possess firearms will be held accountable. ATF alongside our local and state law enforcement partners are committed to keeping our communities safe.” On January 9, 2023, the defendant’s wife called emergency services and reported that she and the defendant had an argument, and that the defendant had a gun to his head. Dover police officers responded to the emergency call at the defendant’s home. The defendant’s wife consented to a search of the house, and officers found four firearms in the closet of their son’s bedroom. Those guns included two pistols, a .40 caliber rifle, and a 12-gauge sawed-off shotgun with an obliterated serial number. Officers also recovered ammunition. The defendant later admitted to owning the firearms and knowing that he could not lawfully possess them as a felon. The defendant also admitted that he used a straw purchaser to purchase three of the firearms and asked that straw purchaser to file a false police report that the firearms she bought were stolen. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led the investigation. Valuable assistance was provided by the Dover Police Department. Assistant U.S. Attorney Alexander S. Chen prosecuted the case. ###


title: Pennsylvania Man Sentenced to Probation and $20,000 Fine for Attempting to Obstruct Investigation Into Purdue Pharma’s and Practice Fusion’s Violations of Anti-Kickback Statute

component: USAO - Vermont

body_text: Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on May 13, 2024, Steven Mack, 49, of Bridgeville, Pennsylvania was sentenced by United States District Judge William K. Sessions III to a one-year term of probation and ordered to pay a $20,000 fine and perform community service. Mack previously pleaded guilty to attempting to obstruct a federal grand jury’s investigation into an illegal kickback that Purdue Pharma L.P. paid to Mack’s former employer, Practice Fusion, an electronic medical records company. According to court records, while working at Practice Fusion, Mack contributed to his employer’s successful efforts to persuade Purdue Pharma L.P. to pay Practice Fusion almost one million dollars in exchange for Practice Fusion altering its physician-facing user interface to generate more opioid prescriptions. In 2020, Purdue Pharma L.P. entered a plea of guilty relating to this arrangement in the United States District Court for the District of New Jersey, and Practice Fusion accepted responsibility for its role pursuant to a deferred prosecution agreement filed in United States District Court for the District of Vermont in case number 2:20-cr-11-wks. Pursuant to that agreement, Practice Fusion agreed to pay a criminal fine of more than $25 million. In late 2019, knowing that the United States Department of Justice was investigating this illegal kickback scheme, Mack intentionally deleted from his employer-issued computer documents that were relevant to the government’s investigation. In recognition of the underlying opioid-promoting kickback scheme, Judge Sessions ordered as a condition of probation that Mack perform 40 hours of community service arranged by a probation officer and involving services for persons suffering from drug addiction. As part of his plea agreement Mack agreed to cooperate with law enforcement and to provide truthful testimony. Because of Mack’s cooperation, the United States recommended that Mack receive a non-incarcerative sentence. United States Attorney Nikolas P. Kerest commended the investigation of the Office of Inspector General for the United States Department of Health and Human Services, as well as the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Michael Drescher, and former Assistant U.S. Attorney Owen Foster. Mack was represented by Stephen Huggard, Esq., of Boston, Massachusetts, and Lisa Shelkrot, Esq., of Burlington, Vermont.


title: California Businessman Sentenced for Securities Fraud Involving Penny Stock Company

component: USAO - Massachusetts

body_text: BOSTON – A California businessman was sentenced yesterday in federal court in Boston for engaging in a fraudulent scheme to obtain and profit from the sale of penny-stock shares that were later sold for millions of dollars during a sophisticated market manipulation scheme. Kevin C. Dills, 67, of Carlsbad, Calif., was sentenced by U.S. District Court Judge Richard G. Stearns to time served (approximately five days in prison) and 30 months of home detention. He was also ordered to forfeit $6.12 million. In January 2024, Dills pleaded guilty to one count of securities fraud. Dills was charged in March 2023 along with co-defendant Joseph A. Padilla, who was sentenced in November 2023 to 66 months in prison and one year of supervised release after previously pleading guilty to securities fraud and other charges. Between October 2020 and July 2021, Dills engaged in a fraudulent scheme to obtain and profit from the sale of unrestricted free-trading shares in the company Oncology Pharma, Inc., a thinly traded company that traded on the over-the-counter securities market under the ticker symbol ONPH. Dills fraudulently induced Oncology Pharma’s transfer agent to issue three million unrestricted free-trading ONPH shares to two entities under Dills’ control by, among other means, secretly controlling one of the entities through his girlfriend and not disclosing that control to Oncology Pharma’s transfer agent. Dills then sold the three million shares to two individuals who deposited the shares with the Cayman Islands broker Valor Capital, with which Padilla had a close, unofficial association. Padilla then engaged in manipulative trading in ONPH designed, at least in part, to artificially drive up the company’s stock price, after which Padilla began dumping the ONPH shares—which were under common control—to unsuspecting investors in Massachusetts and throughout the United States during a promotional campaign, generating tens of millions of dollars in illicit profits. Over $6 million from those illicit profits was then transferred to Dills via his two entities between March and June 2021. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant United States Attorneys James R. Drabick and Ian J. Stearns of the Securities, Financial & Cyber Fraud Unit prosecuted the case.