title: Carbon & Luzerne County Men Charged With Conspiracy, Burglary Of A U.S. Post Office, And Bank Fraud

component: USAO - Pennsylvania, Middle

body_text: SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Juan Jose Rodriguez Tejeda, age 22, of Luzerne County, Pennsylvania, and Angel Luis Carrasco Marinez, age 20, of Carbon County, Pennsylvania, were indicted on October 8, 2024, by a federal grand jury for conspiracy to commit burglary of U.S. Post Offices, burglary of a U.S. Post Office, and bank fraud. According to United States Attorney Gerard M. Karam, the indictment alleges that between May 12, 2024 and August 12, 2024, Rodriguez Tejeda and Carrasco Marinez conspired to burglarize multiple U.S. Post Offices in the Middle District of Pennsylvania, the Eastern District of Pennsylvania, and the District of New Jersey. The indictment also alleges that Rodriguez Tejeda and Carrasco Marinez burglarized a U.S. Post Office in Cornwall, Pennsylvania. The indictment further alleges that Rodriguez Tejeda altered checks stolen from the burglaries in order to deposit them into his own bank account. This matter was investigated by the U.S. Postal Investigation Service (USPIS). Assistant United States Attorney Sarah R. Lloyd is prosecuting the case. The maximum penalty under federal law for burglary of a U.S. Post Office is 5 years imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for bank fraud is 30 years imprisonment, a term supervised release, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Former Minersville Police Officers Charged With Civil Rights And False Report Offenses

body_text: SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Harry Brown, age 43, of Pottsville, Pennsylvania, and Richard Clink, age 50, of Minersville, Pennsylvania, were indicted by a federal grand jury for depriving the civil rights of another under the color of law and for making false reports. According to United States Attorney Gerard M. Karam, the indictment alleges that on or about February 2, 2022, while acting under the color of law, Brown and Clink, aiding and abetting each other, did deprive an arrestee of his constitutional right to be free from the use of unreasonable force by a law enforcement officer. This use of unreasonable force led to bodily injury of the arrestee. The indictment further alleges that both Brown and Clink falsified, covered up, and made false entries into police reports documenting the arrest and their use of force during that arrest. “Law enforcement officers take an oath to serve and protect the public, but as alleged in this case, these officers violated the constitutional rights of an individual and then attempted to cover up their actions,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. "FBI Philadelphia and our partners will continue to ensure the civil rights of all our citizens are protected, and that those who commit crimes will be held accountable." The matter was investigated by the Minersville Police Department and the Federal Bureau of Investigation. Assistant United States Attorney James Buchanan is prosecuting the case with assistance from the Civil Rights Division. The maximum penalty under federal law for these offenses is twenty years’ imprisonment and a fine of $250,000. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Resident of New Hampshire Sentenced for Involvement in Online Scheme to Defraud the Elderly

component: Federal Bureau of Investigation (FBI)

body_text: ALEXANDRIA, La. – United States Attorney Brandon B. Brown announced that Raj Vinodchandra Patel , 34, of New Hampshire, has been sentenced by United States District Judge Dee D. Drell to 51 months in prison for his role in an online scheme to defraud the elderly. On June 20, 2024, Patel pleaded guilty to one count indictment charging him with conspiracy to commit wire fraud. Sometime in September 2023, an elderly resident in Alexandria, Louisiana, saw a “pop-up” message on their computer screen which directed them to call a computer “helpline.” This alleged computer helpline was merely a contact number being operated by one of Patel’s co-conspirators from India. When the victim called this supposed helpline, they were told that criminal activity had been seen on their computer and then transferred them to an alleged special agent working for the Federal Trade Commission in Washington, D.C. who would assist them further. However, the victim was not actually communicating with a federal agent but in truth and in fact, it was another of Patel’s co-conspirators operating from India. This fake federal agent falsely claimed that the victim’s Social Security number had been compromised, and that their monetary assets were at risk and that the only way to fix it would be for the victim to liquidate their bank account, buy gold bullion, and then transfer that gold bullion to another federal agent who would maintain the gold for supposed safe keeping until the “federal investigation” was completed. When in truth and in fact, there was no federal investigation, but this was an online scam to steal money and property from the victim. Patel worked as a courier in this wire fraud scheme. On October 7, 2023, he flew from Boston to New Orleans, rented a car, and drove to the victim’s residence to retrieve the gold bullion. The victim had been instructed by Patel’s co-conspirator in India to place the gold bullion into the backseat of Patel’s rental car. Unbeknownst to Patel, however, the victim had contacted the Federal Bureau of Investigation (“FBI”) about the fraud scheme. The FBI set up a sting operation and video recorded Patel retrieving the package from the victim and driving away. Troopers with the Louisiana State Police stopped Patel and he was placed under arrest. Following his arrest, Patel admitted to his part in this scheme and that he had flown to other places across the United States for gold pickups from other elderly victims. Patel further admitted that as he was being stopped by law enforcement officers, he deleted the “WhatsApp Business” application from his cell phone in order to conceal his communications with co-conspirators. The intended loss amount attributed to this fraud scheme was approximately $514,000. “There is a keen federal interest to protect the elderly and prosecute those who take advantage of their vulnerability by using them to commit financial crimes,” said United States Attorney Brandon B. Brown. “This is a transnational crime, spanning from India to central Louisiana, that was investigated because the victim trusted his/her instincts and immediately contacted law enforcement. The Department of Justice is ready, willing, and able to seek justice for the elderly, who are the backbone of our country.” “Victims in Louisiana lost nearly $12 million dollars to schemes just like this one last year and those are the people we know about,” said Special Agent in Charge Lyonel Myrthil of FBI New Orleans. “The victim in this case did exactly as we ask the public to do. Trust your instincts. Take a break and call law enforcement. These actors are getting bolder and potential victims are putting their lives at risk with these encounters. We ask the public to report any suspicious activity like this to IC3.gov or by calling 1-800-CALL-FBI.” The case was investigated by the Federal Bureau of Investigation and Louisiana State Police and prosecuted by Assistant United States Attorney Mike Shannon. To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov . To learn more about the Department of Justice’s elder justice efforts please visit the Elder Justice Initiative page . # # #


title: York County Man Sentenced To 10 Years In Prison For Trafficking Methamphetamine

body_text: HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Craig Smith, age 53, of York County, Pennsylvania, was sentenced on October 8, 2024, by U.S. District Court Judge Jennifer P. Wilson to 10 years in prison for trafficking methamphetamine. According to United States Attorney Gerard M. Karam, Smith was sentenced for his role in a methamphetamine trafficking ring operated out of a home in Windsor, Pennsylvania. Smith received the ten-year mandatory minimum sentence for trafficking over 500 grams of methamphetamine. Smith had previously entered a guilty plea where he admitted that on May 6, 2020, he tried to acquire over 600 grams of methamphetamine from a drug dealer in Philadelphia. Police arrested him and found a gun. Smith was charged with conspiracy to traffic meth with Kimberly Forney, Cody Mitzel, Christa Tabor, and Sheridan Lee Boothe. All the other co-defendants have pled guilty to their roles in methamphetamine trafficking conspiracy. Kimberly Forney was sentenced to 14 years in prison. Cody Mitzel was sentenced to approximately 36 months in prison. Sheridan Lee Boothe was sentenced to 100 months in prison. Christa Tabor pled guilty to conspiracy to traffic methamphetamine and is awaiting sentencing. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael Consiglio is prosecuting the case. # # #


title: Eighteen Individuals and Entities Charged in International Operation Targeting Widespread Fraud and Manipulation in the Cryptocurrency Markets

component: USAO - Massachusetts

body_text: BOSTON – Eighteen individuals and entities have been charged for widespread fraud and manipulation in the cryptocurrency markets. Charges were unsealed in Boston against the leaders of four cryptocurrency companies, four cryptocurrency financial services firms (known as “market makers”) and employees at those firms. Four defendants have pleaded guilty, another defendant has agreed to plead guilty, and authorities apprehended three other defendants in Texas, the United Kingdom and Portugal this week. More than $25 million in cryptocurrency has been seized and multiple trading bots responsible for millions of dollars’ worth of wash trades for approximately 60 different cryptocurrencies have been deactivated. According to the charging documents, the defendants who created cryptocurrency companies made false statements about their cryptocurrencies (“tokens”) and executed sham trades in those tokens (“wash trades”) to create the appearance of trading activity that would make the tokens look like good investments. These deceptive tactics allegedly attracted new investors and purchasers, which resulted in an increase in the tokens’ trading prices. The defendants are then alleged to have sold their tokens at the artificially inflated prices, a fraud commonly known as a “pump and dump.” The largest of these cryptocurrency companies, Saitama, at one point had a multi-billion-dollar market value. The cryptocurrency companies also allegedly hired financial services firms ( “market makers”) to wash trade their tokens in exchange for payment. As one market maker defendant, who has agreed to plead guilty, described the practice to a prospective client: the “objective on the secondary markets” is to find “other buyers from the community, people you don’t know about or don’t care about” because “we have to make [the other buyers] lose money in order to make profit.” Three market makers—ZM Quant, CLS Global and MyTrade—along with their employees are charged with allegedly wash trading and/or conspiring to wash trade on behalf of NexFundAI, a cryptocurrency company and token created at the direction of law enforcement as part of the government’s investigation. A fourth market maker, Gotbit, its CEO, and two of its directors are also charged for perpetrating a similar scheme. Specifics regarding the defendants and conduct are detailed in Attachment A below. “This investigation, the first of its kind, identified numerous fraudsters in the cryptocurrency industry. Wash trading has long been outlawed in the financial markets, and cryptocurrency is no exception. These are cases where an innovative technology – cryptocurrency – met a century old scheme – the pump and dump. The message today is, if you make false statements to trick investors, that’s fraud. Period. Our Office will aggressively pursue fraud, including in the cryptocurrency industry,” said Acting United States Attorney Joshua Levy. “These charges are also a stark reminder of how vigilant online investors must be and that doing your homework before diving into the digital frontier is critical. People considering making investments in the cryptocurrency industry should understand how these scams work so that they can protect themselves.” “What the FBI uncovered in this case is essentially a new twist to old-school financial crime. ‘Operation Token Mirrors’ targeted nefarious token developers, promoters, and market makers in the crypto space. What we uncovered has resulted in charges against the leadership of four cryptocurrency companies, and four crypto ‘market makers’ and their employees who are accused of spearheading a sophisticated trading scheme that allegedly bilked honest investors out of millions of dollars,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI took the unprecedented step of creating its very own cryptocurrency token and company to identify, disrupt, and bring these alleged fraudsters to justice.” If you bought or sold any of the tokens referenced below, please fill out this form . The Securities & Exchange Commission has filed civil complaints alleging violations of the securities laws in relation to the conduct at Gotbit, CLS, ZM Quant, Saitama and Robo Inu. Valuable assistance was provided by the Federal Bureau of Investigation’s Legal Attachés (Madrid and London), Portugal’s Policia Judiciaria European Network of Fugitive Active Search Team (ENFAST), the United Kingdom’s National Crime Agency’s National Extradition Unit, the Internal Revenue Service Criminal Investigation, Boston Field Office and the Criminal Division’s Computer Crime and Intellectual Property Section, National Cryptocurrency Enforcement Team. 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. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the cases. The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law. ### ATTACHMENT A The following individuals and entities have been charged in U.S. District Court in Boston, Mass.: Aleksei Andriunin , Fedor Kedrov, Qawi Jalili, Gotbit Consulting LLC (Gotbit) – According to court documents, Gotbit was a well-known “market maker” in the cryptocurrency industry. Aleksei Andriunin, 26, of Russia and Portugal, was Gotbit’s Chief Executive Officer and Founder. Andriunin was arrested on Oct. 8, 2024 in Portugal and awaits extradition. Fedor Kedrov, of Russia, was Gotbit’s Director of Market Making. Qawi Jalili, of Russia was Gotbit’s Director of Sales. Gotbit, Kedrov and Jalili are each charged with wire fraud and conspiracy to commit market manipulation and wire fraud. Andriunin is also charged in a separate criminal complaint with wire fraud, conspiracy to commit market manipulation and wire fraud and conspiracy to commit money laundering. It is alleged that between 2018 and 2024, Gotbit provided market manipulation and wash trading services to several cryptocurrency companies, including companies located in the United States. Gotbit allegedly made wash trades worth millions of dollars on behalf of clients and received tens of millions of dollars in proceeds for these illicit services. In a 2019 interview published online, Andriunin allegedly described how he developed a code to wash trade and artificially inflate cryptocurrency trading volume. Andriunin allegedly kept track of Gotbit’s market manipulation, including with spreadsheets that compared “Created Volume” from wash trades with naturally occurring “Market Volume.” Gotbit’s employees, including Jalili and Kedrov, allegedly described these wash trading tactics to prospective clients and how to avoid detection. Jalili and Kedrov also allegedly provided these services to multiple cryptocurrencies, including the Saitama and Robo Inu cryptocurrencies. Riqui Liu, Baijun Ou, Z M Quant Investment LTD (ZM Quant) – ZM Quant was a “market maker” in the cryptocurrency industry that allegedly advertised illicit market manipulation services to clients. Riqui Liu, 26, of the United Kingdom and Hong Kong, was an employee of ZM Quant. Baijun Ou, 32, of Hong Kong, was also an employee of ZM Quant. ZM Quant, Liu and Ou are each charged in a superseding indictment with wire fraud and conspiracy to commit market manipulation and wire fraud. According to court documents, ZM Quant allegedly advertised a “trading bot” that could “create volume.” ZM Quant employees allegedly discussed these illicit services with clients through Telegram messages and during video teleconferences. For example, as alleged in the charging documents, during a video teleconference in March 2024, Liu and Ou described how ZM Quant would trade “maybe ten times per minute or twenty times a minute” to “increase the trading volume” and “pump the price.” Liu and Ou also described how ZM Quant allegedly used multiple trading wallets to avoid having the trading look “fake.” It is further alleged that ZM Quant provided market manipulation services for multiple cryptocurrency companies, including Saitama and NexFundAI. Andrey Zhorzhes, CLS Global FZC, LLC (CLS) – CLS was a “market maker” in the cryptocurrency industry that allegedly advertised illicit market manipulation services to its clients. Andrey Zhorzhes, of the United Arab Emirates, was an employee of CLS. Both CLS and Zhorzhes are charged in an indictment with wire fraud and conspiracy to commit market manipulation and wire fraud. It is alleged that Zhorzhes described to a prospective client how CLS’s algorithm generated trading volume on multiple cryptocurrency exchanges, as follows: “We have an algorithm that . . . basically does self-trades, buying and selling.” “The idea of volume generation is . . . so the token looks organic and looks live and people get interested in trading it.” “It’s very hard to track. . ..We’ve been doing that for many clients.” “I know that it’s wash trading and I know people might not be happy about it.” Zhorzhes and other CLS traders allegedly provided these market manipulation services for NexFundAI. Liu Zhou , MyTrade MM – MyTrade MM was another “market maker” in the cryptocurrency industry that advertised illicit market manipulation services to its clients, including “pump and dump” consulting services and “wash trades” facilitated by “bots.” Liu Zhou, 39, of China and Canada, was the founder of MyTrade MM. Zhou is charged and has agreed to plead guilty to conspiracy to commit market manipulation and wire fraud. MyTrade MM’s clients had access to a dashboard on MyTrade MM’s website through which clients specified the desired amount of daily wash trades on identified cryptocurrency exchanges. MyTrade MM’s dashboard described the service as “Volume Support” and allowed for millions in wash trades per day for each client cryptocurrency, for example: In conversations with purported promoters of NexFundAI, Zhou allegedly described MyTrade MM as superior to “CLS” and “Gotbit” because those market makers “keep clients in the dark” and “control the pump and dump,” which means “they can do inside trading easily.” Zhou allegedly also described the various purposes for wash trading, including showing “continuous trading activity every hour”; generating large enough trading volumes for cryptocurrency exchanges to waive listing fees; and executing “pump and dumps.” According to court documents, Zhou further described that the “objective on the secondary markets” was to find “other buyers from the community, people you don’t know about or don’t care about” because “we have to make [the other buyers] lose money in order to make profit.” Manpreet Kohli, Haroon Mohsini, Nam Tran , Max Hernandez , Russell Armand , Vy Pham , Saitama LLC (Saitama) – Saitama was a cryptocurrency company, originally incorporated in Massachusetts in August 2021. Manpreet Kohli, 43, of the United Kingdom, was the CEO of Saitama. Kohli was arrested in the United Kingdom on Oct. 7, 2024 and is awaiting extradition. Haroon Mohsini, 37, of Texas, also worked at Saitama. Mohsini was arrested on Oct. 7, 2024 in the Southern District of Texas. Nam Tran, 32, of Vietnam, worked at Saitama and is currently in Vietnam. Kohli, Mohsini and Tran are each charged in a superseding indictment with wire fraud, market manipulation, and conspiracy to commit wire fraud, commit market manipulation and conduct an unlicensed money transmitting business. Max Hernandez, 36, of Massachusetts, and Russell Armand, 42, of Texas, also worked at Saitama and are charged separately and have both pleaded guilty to market manipulation and conspiracy to commit wire fraud and to operate an unlicensed money transmitting business. Vy Pham, 32, of California, is also charged for conduct at a different cryptocurrency company but, as part of that guilty plea, admitted to certain conduct involving Saitama. Saitama allegedly purported to create a series of products that could be used with its token and, at its peak, boasted a market value of $7.5 billion. Saitama’s leadership allegedly made a variety of false public statements, including that Saitama’s business plan had been reviewed by regulators, that its leadership was not selling the Saitama tokens they owned and that the Saitama token was coded in a way that prevented market manipulation. According to charging documents, in reality Saitama’s leadership was actively manipulating the market for the Saitama token and secretly selling their Saitama tokens for tens of millions in profits. Saitama’s market manipulation campaign allegedly began in or about July 2021, when leadership coordinated a series of small purchases spread across multiple cryptocurrency wallets. These trades were coordinated on Telegram, where Armand allegedly explained that the goal was to “create an illusion of massive buys and new holders” to “incite ppl [people] to buy more...W[e] want list of small buys to look like it’s mor[e] buyers. That’s the idea.” Saitama’s leadership allegedly confirmed their purchases to one another, discussed how they were successfully getting others to purchase the Saitama cryptocurrency and exchanged “pump it” memes and GIFs: Thereafter, the Saitama leadership allegedly paid several market makers to wash trade the Saitama cryptocurrency on cryptocurrency exchanges, including BitMart, LBank and XT.com. The market makers that Saitama paid allegedly included ZM Quant and Gotbit. Robo Inu Finance (Robo Inu) – Robo Inu was a cryptocurrency company and token that Vy Pham created after she left Saitama in 2021. Pham has been charged and agreed to plead guilty to conspiracy to commit market manipulation, to commit wire fraud and to operate an unlicensed money transmitting business. Pham founded and promoted Robo Inu from the United States. Like Saitama, Robo Inu allegedly purported to create a series of products that could be used with its cryptocurrency. Beginning in or about 2022, Robo Inu allegedly paid Gotbit to artificially inflate the trading volume of the Robo Inu token through wash trades on cryptocurrency exchanges such as Bitmart. Michael Thompson , VZZN – VZZN was a cryptocurrency company and token that Armand created after he left Saitama in 2023. Michael Thompson, 50, of Virginia, also worked at VZZN. As with Armand, Thompson is charged and pleaded guilty to conspiracy to commit market manipulation. VZZN allegedly purported to be a video streaming service that could be used with the VZZN token. While promoting that service, Armand and Thompson allegedly also made misleading public statements about VZZN and artificially inflated the trading volume of the VZZN token through wash trades. Bradley Beatty , Lillian Finance LLC (Lillian Finance) - Lillian Finance was a cryptocurrency company and token founded by Bradley Beatty, 48, of Florida. Beatty is charged in an indictment with wire fraud. Lillian Finance allegedly purported to use blockchain technology in the healthcare industry and to use a portion of proceeds generated from token sales for charitable purposes. Beatty allegedly made a series of false statements about Lillian Finance to attract investors, for example, that he was a defense contractor and that he had addressed Congress on the topic of cryptocurrency. Thereafter, it is alleged that Beatty generated hundreds of thousands of dollars in proceeds from retail sales of the Lillian Finance token and misappropriated a portion of Lillian Finance’s profits that were supposed to be used for charity. The charge of market manipulation provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $5 million or twice the gross gain or loss from the offense and forfeiture. The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit wire fraud, market manipulation and/or to conduct an unlicensed money transmitting business provides for a sentence of up to five years in prison, up to three years of supervised release, a fine of up to $250,000 to twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000, or twice the value of the criminally derived property, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. ###


title: Repeat Offender Sentenced to 135 Months in Prison for Possession of Child Pornography

component: USAO - New Jersey

body_text: NEWARK, N.J. –A Hudson County, New Jersey, man was sentenced today to 135 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced. Christopher Carvajal, 31, of North Bergen, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possession of child pornography. Judge Cecchi imposed the sentence today in Newark federal court. According to documents filed in this case and statements made in court: In April 2023, Carvajal’s iPhone was seized at Newark International Airport. A search revealed that Carvajal’s iPhone contained more than 900 video files and more than 400 image files depicting sexual abuse of minors, including infants or toddlers. Carvajal’s iPhone also contained communications in which Carvajal discussed his desire for sexual encounters with young children. Carvajal was previously convicted in the Superior Court of New Jersey, Bergen County, of a child pornography offense. In addition to the prison term, Judge Cecchi sentenced Carvajal to 15 years of supervised release. U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the charges. The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division in Newark.


title: Massachusetts Business Owner Pleads Guilty to Million Dollar Tax Fraud Scheme

body_text: BOSTON – A Hanson man pleaded guilty on Oct. 4, 2024 to a tax fraud scheme in which he willfully failed to pay employment taxes for his two businesses. Kenneth Marston, 67, pleaded guilty to one count of failure to collect and pay over employment taxes. U.S. District Judge Indira Talwani scheduled sentencing for Jan. 3, 2025. From 2015 through 2018, Marston owned and operated two businesses: Bowmar Steel Industries, Inc., which engaged in steel fabrication and Teleconstructors, Inc., which provided installation services on cellular phone towers. During that time, Marston falsely treated his employees as if they were independent contractors and, in turn, failed to withhold employment taxes on over $3.8 million in combined wages. As a result, Marston avoided reporting and paying $1 million in employment taxes owed to the Internal Revenue Service. The charge of failure to pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit and Trial Attorney Mark McDonald of the Justice Department’s Tax Division are prosecuting the case.


title: Huntingdon County Man Sentenced To 10 Years In Prison For Drug Trafficking

body_text: HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Scott Douglas Moyer, age 49, of Huntingdon County, Pennsylvania, was sentenced on October 7, 2024, to 10 years in prison by United States District Court Judge Christopher C. Conner for drug offenses. According to United States Attorney Gerard M. Karam, Moyer was sentenced for trafficking methamphetamine from his home between October 2020 and February 2021. Previously, Moyer entered a guilty plea to drug trafficking charges where he admitted that on multiple occasions he distributed methamphetamine, which led police to search his Union Township home on February 1, 2021. Police found close to kilogram of methamphetamine and 17 firearms at his home. When imposing sentence, Judge Conner noted the significant amount of drugs distributed and seized, as well as the presence of weapons at his home. The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pennsylvania State Police. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses. # # #


title: Alexandria Man Sentenced for Conspiring to Distribute Methamphetamine

body_text: ALEXANDRIA, La. – Tyrone Donnell Porter , 51, of Alexandria, has been sentenced for conspiracy to distribute and possess with intent to distribute methamphetamine, announced United States Attorney Brandon B. Brown. United States District Judge Dee D. Drell sentenced Porter to 360 months (30 years) in prison, followed by 5 years of supervised release. Porter was found guilty of the charge by a jury in Alexandria after a trial in December 2023. Evidence introduced at trial revealed that agents with the Federal Bureau of Investigation began an investigation into the drug trafficking activities of Porter and others during 2021. Law enforcement agents obtained a search warrant for a hotel room which was rented under Porter’s name in Alexandria and where Porter was staying. On September 30, 2021, agents executed the search warrant and found Porter inside the hotel room, along with two other individuals. Inside the room, agents found two bags containing a glass pipe with methamphetamine residue, 2 boxes and 18 loose rounds of ammunition, as well as a Sig Sauer 9mm handgun in a holster loaded with 11 rounds in the magazine. In addition, agents found a large black plastic bag with a can which had a vacuum sealed bag containing 492 grams of suspected methamphetamine. Agents were later able to obtain video footage of Porter carrying the black plastic bag which had the can of methamphetamine into the hotel just minutes before law enforcement arrived to execute the search warrant. The case was investigated by the Federal Bureau of Investigation and Rapides Parish Sheriff’s Office and prosecuted by Assistant United States Attorneys John W. Nickel and Casey N. Richmond. # # #


title: York Man Sentenced To Over 14 Years In Prison For Drug Trafficking

body_text: HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mark A. Woods, age 32, of York, Pennsylvania, was sentenced on October 7, 2024, to 176 months in prison by United States District Court Judge Christopher C. Conner for drug offenses. According to United States Attorney Gerard M. Karam, Woods was sentenced for trafficking crack cocaine, heroin, and fentanyl in York. Previously, Woods entered a guilty plea where he admitted that on July 30, 2019, the York City Police Department caught him with drugs he was going to traffic. Police also found that he had a gun. When imposing sentence, Judge Conner pointed to the fact that Woods had a gun on this occasion, that Woods’ extensive criminal history including drugs and guns, and that previous prison sentences failed to deter him. The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the York City Police Department. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses. # # #


title: Eight Charged in $68M Social Adult Day Care and Home Health Care Scheme

component: Criminal Division

body_text: An indictment was unsealed today in Brooklyn, New York, charging eight defendants for their alleged roles in a scheme to defraud Medicaid of approximately $68 million through the operation of two social adult day cares and a home health care financial intermediary that were paying kickbacks and bribes for services that were not provided. According to court documents, Zakia Khan, 53, of Brooklyn, and Ahsan Ijaz, 27, of Brooklyn, owned two social adult day cares, Happy Family Social Adult Day Care Center Inc. (Happy Family) and Family Social Adult Day Care Center Inc. (Family Social), and a financial intermediary, Responsible Care Staffing Inc. (Responsible Care), for the New York Medicaid Consumer Directed Personal Assistance Services Program (CDPAP), which permits family members of Medicaid recipients to receive payment for assisting Medicaid recipients with activities of daily living. Beginning in approximately October 2017, in exchange for kickbacks and bribes, marketers Elaine Antao, 45, also known as Aleena, of Brooklyn, Omneah Hamdi, 61, of Brooklyn, and Manal Wasef, 44, of Brooklyn, allegedly referred Medicaid recipients to Happy Family, Family Social, and/or Responsible Care. The marketers in turn allegedly paid kickbacks and bribes to Medicaid recipients for social adult day care and CDPAP services that Happy Family, Family Social, and Responsible Care billed to Medicaid but were not provided or were induced by kickbacks and bribes. Ansir Abassi, 38, also known as Zaib Abassi and Ansir Zaib, of Brooklyn, and Amran Hashmi, 53, of Brooklyn, allegedly managed Happy Family and Family Social and the marketers. To carry out the kickback scheme, Khan, Antao, Ijaz, Abassi, and Hamdi allegedly used business entities to launder the fraud proceeds and generate the cash used to pay kickbacks and bribes. Seema Memon, 30, of Brooklyn, an employee of Happy Family who was previously charged by complaint on July 1, was also indicted. “As alleged in the indictment, these defendants orchestrated a years-long scheme to defraud Medicaid of tens of millions of dollars for social adult day care and home care services for seniors that they did not provide,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendants allegedly paid cash bribes and kickbacks to recruiters and Medicaid recipients as part of a scheme to enrich themselves at the expense of vital programs for senior citizens. Today’s charges make clear that the Criminal Division will not tolerate schemes that brazenly steal from federal health care programs.” “Social adult day care and home health services are meant to help seniors, but as alleged, the defendants allegedly turned their businesses into a brazen cash grab of millions of dollars from the Medicaid program,” said U.S. Attorney Breon Peace for the Eastern District of New York. “My office is committed to investigating and prosecuting those who plunder taxpayer-funded, federal health care programs dollars while purporting to offer health care services.” “HHS-OIG is committed to working with our law enforcement partners to investigate allegations that bribes and kickbacks are paid with Medicaid monies,” said Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.” “The crimes outlined in this indictment took advantage of a network that offers essential health care and other services to those in need,” said Interim Commissioner Thomas G. Donlon of the New York City Police Department (NYPD). “Let it be clear: anyone who attempts to profit by defrauding the system will face consequences, as these schemes drain already limited resources and deprive beneficiaries of crucial funds. I commend our NYPD investigators and federal law enforcement partners for their successful and continued collaboration.” “As alleged, the defendants saw nothing beyond the dollar signs associated with their crimes, and in turn defrauded the U.S. government of $68 million in welfare funds meant for one of our country’s most vulnerable populations,” said Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York. “Today’s announcement underscores the HSI New York El Dorado Task Force’s unrelenting focus on dismantling and disrupting financial fraud schemes that exploit the American public and hurt our economy.” Khan is charged with conspiracy to commit health care fraud, three counts of health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, paying health care kickbacks, conspiracy to commit money laundering, and money laundering. If convicted, she faces a maximum penalty of 20 years in prison for each count of conspiracy to commit money laundering and money laundering, 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud, and paying health care kickbacks, and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks. Abassi, Antao, Hamdi, and Ijaz are charged with conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, conspiracy to commit money laundering, and money laundering. If convicted, they face a maximum penalty of 20 years in prison for each count of conspiracy to commit money laundering and money laundering, 10 years in prison for conspiracy to commit health care fraud, and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks. Hashmi is charged with conspiracy to commit health care fraud, three counts of health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and paying health care kickbacks. If convicted, he faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud, and paying health care kickbacks, and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks. Memon is charged with conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and paying health care kickbacks. If convicted, she faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud and paying health care kickbacks and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks. Wasef is charged with conspiracy to commit health care fraud and conspiracy to defraud the United States and to pay and receive health care kickbacks. If convicted, she faces a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to defraud the United States and to pay and receive health care kickbacks. HHS-OIG, NYPD, and HSI are investigating the case. Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Tanisha R. Payne for the Eastern District of New York is assisting with forfeiture matters. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Three Arrested, Facing Up To 10 years in Federal Prison for Possession of Machinegun Conversion Devices

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

body_text: DEL RIO, Texas – A San Antonio man was arrested on criminal charges related to his alleged possession of a machinegun conversion device. According to court documents, Anethen Sergio Bruno aka “BIG A,” 21, possessed at least two handguns, each equipped with a machinegun conversion device, also known as a “switch.” The devices make a firearm capable of firing automatically more than one shot, without manual reloading, by a single function of the trigger. The possession, production, and/or use of such devices is in violation of federal law and violators are considered to be in possession of a machinegun. Bruno made his initial appearance in federal court today and is charged with two counts of possession of a machinegun. If convicted, he faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Codefendants Hector Elias aka “COCO,” 20, and Miguel Angel Reyes aka “ANGEL,” 22, of Del Rio were both arrested Sept. 27 and made their initial appearances Sept. 30. Elias is charged with one count of possession of a machinegun and one count of felon in possession of a firearm. He faces up to 10 years in prison for the machinegun charge and up to 15 years in prison for the felon in possession charge. Reyes is charged with one count of possession of a machinegun. He faces up to 10 years in prison. U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the case. Assistant U.S. Attorneys Warsame Galaydh and Matt Kass are prosecuting the case. 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: Seven Western Washington tribal nations receive significant funding from DOJ’s Office of Violence Against Women to enhance services for victims of domestic violence

component: USAO - Washington, Western

body_text: Seattle – Seven western Washington tribal nations are receiving significant funding to enhance services for victims of domestic violence, sexual assault, and stalking, announced U.S. Attorney Tessa M. Gorman. The grants, from the Office of Violence Against Women (OVW) pay for a range of services. For three of the tribes the funding will enhance their efforts to hold non-Indian offenders accountable in tribal court. “Native women suffer domestic violence assaults at a disproportionately higher rate than other communities,” said U.S. Attorney Gorman. “These grants enhance the efforts of our tribal partners to hold offenders accountable and promote healing for victims of domestic violence and sexual assault.” Three tribes, the Quileute Tribe, the Lummi Nation, and the Tulalip Tribes received grants under the 2024 Special Tribal Criminal Jurisdiction Grant Program. The program assists tribes in establishing court staff and procedures to prosecute non-Indians for crimes against Indian victims on tribal land. Such crimes include: assault of Tribal justice personnel, child violence, dating violence, domestic violence, obstruction of justice, sexual violence, sex trafficking, stalking and violation of a protection order. The Quileute Tribe received $1,710,078 for its justice program. The Lummi Nation received $863,977 and the Tulalip Tribes was awarded $1.5 million specifically for their tribal court programs. In addition to the Tribal Criminal jurisdiction grants, significant funds are supporting services for victims in tribal communities: The Tulalip Tribes receive two other OVW grants totaling $1.7 million. $500,000 is to enhance investigation of domestic violence, dating violence, sexual assault and stalking with additional training and personnel. The additional $1.2 million is to support crisis intervention services, housing, legal services, and therapy for victims of domestic violence. The Lummi Nation received an additional $800,000 for safety planning and shelter for victims of domestic violence. The Suquamish Indian Tribe received $1.2 million to provide support for crime victims, housing stability and no cost civil legal services. The Quinault Indian Nation received $1,199,960 to provide advocacy, shelter, and legal services to victims. The Sauk-Suiattle Indian Tribe received $900,000 for transitional housing for victims and funding for a special therapy program for youth who have experienced domestic violence, dating violence and sexual assault. The Skokomish Indian Tribe received $501,601 to increase the capacity of its crisis hotline, safe housing and crisis advocacy and support.


title: Guilford Business Owner Sentenced to Prison for Tax Offense

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHELLE ANN GILSON, 38, of Guilford, was sentenced today by U.S. District Judge Vernon D. Oliver in Hartford to 19 months of imprisonment, followed by three years of supervised release, for failing to pay more than a million dollars in business payroll taxes. According to court documents and statements made in court, Gilson co-owned and co-operated B&M Package Solutions, Inc. and formerly owned and operated Epic Empirez, Inc., both Guilford-based package delivery companies. As co-owner, Gilson was responsible for company books, payroll, and invoices, and for collecting and paying over certain federal taxes from her employees, namely federal income taxes and Federal Insurance Contribution Act (“FICA”) taxes, which include Medicare and Social Security taxes. She was also responsible for ensuring that B&M Package Solutions and Epic Empirez, as employers, paid their own share of FICA taxes. An investigation revealed that, for multiple quarters during the 2017 through 2022 tax years, Gilson failed to report employees’ federal income and FICA taxes, and failed to pay over withheld amounts and the employers’ share of FICA taxes. During this time, Gilson paid more than $600,000 in mortgage payments and property improvements to her Guilford home, and made approximately $140,000 in payments to casino resorts. Judge Oliver ordered Gilson to pay the IRS restitution of $1,407,831.16. In 2020, Gilson applied for a government loan through the Paycheck Protection Program (PPP), which was authorized by Congress as part of the March 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. As part of the PPP application, Gilson attested that B&M Package Solutions paid payroll taxes for its employees. In July 2020, Gilson received $250,000 in PPP funds. The PPP loan was subsequently forgiven. On July 18, 2024, Gilson pleaded guilty to willful failure to pay over withholding taxes. Gilson, who is released on bond, is required to report to prison on December 4. This matter was investigated by Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Elena L. Coronado.


title: Shelton Man Charged with Child Exploitation Offenses

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI), New England, today announced that BURNEST GEYER, Jr., 31, of Shelton, has been charged by federal criminal complaint with child exploitation offenses. As alleged in court documents, an investigation revealed that Geyer had told an individual that he possessed child pornography videos, and that he had communicated with a second individual through Telegram, an encrypted phone messaging application, about his child pornography collection. During a Telegram communication, Geyer shared his laptop screen and showed pictures and videos depicting the sexual abuse of children. On October 8, 2024, investigators conducted a court-authorized search of Geyer’s residence and seized Geyer’s iPhone and other items. Preliminary analysis of the Telegram app on the iPhone revealed approximately 2,000 images and videos depicting child pornography. Geyer was arrested yesterday. He appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was released on a $100,000 bond. The complaint charges Geyer with receipt and distribution of child pornography, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years, and with possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years. U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by Homeland Security Investigations (HSI) with the assistance of the Bridgeport Police Department and the Shelton Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel P. Gordon. This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc . To report cases of child exploitation, please visit www.cybertipline.com .


title: Three Indicted in Conspiracy to Commit Bank Robberies in the Eastern District of California and the East Bay

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — On Sept. 26, 2024, a federal grand jury returned a five-count indictment against Dontae Jones Jr., 20, and Yasmin Millett, 21, both residing in Northern California with no fixed address, and JoMya Mauriyne Futch, 21, of Richmond, charging them with conspiracy to commit bank robbery and bank robbery, U.S. Attorney Phillip A. Talbert announced. Futch was additionally charged with one count of perjury. The indictment was unsealed today following the defendants’ arrests. According to court documents, between June 2023 and September 2024, Jones and Millett conspired to commit at least 10 bank robberies in Sacramento, Vallejo, Suisun City, Benicia, Concord, and Antioch. Jones and Millett worked together and with others, primarily women they recruited, such as Futch, to facilitate a patterned series of bank robberies. The participants drove to bank and credit union branches, entered the branches with threatening notes demanding money, presented the notes to branch employees, took cash, and exited the branches to a waiting getaway car. Generally, the notes would instruct the bank employees to provide money or “I will kill everyone in here.” On at least one occasion, a woman was held at gunpoint and forced to commit a robbery by Jones and Millett against her will. On another occasion, Jones and Millett used a minor in an attempted robbery. After a successful robbery, the members of the conspiracy distributed the stolen money amongst themselves. Jones and Millett actively sought and groomed recruits to act as the note passers. Millett advertised the conspiracy on Instagram in videos and photographs of herself and other participants holding large amounts of cash. Jones and Millett sometimes directed recruits to wear dark sunglasses during the robberies to conceal their identities and carry purses in order to carry the stolen money away from the banks and credit unions. Futch joined the conspiracy and conspired to commit at least two bank robberies. She is additionally charged with perjury. On Aug. 15, 2024, Futch appeared as a witness under oath before a grand jury and knowingly made false statements. This case is the product of an investigation by FBI field offices in San Francisco and Sacramento, with assistance from the Sacramento Police Department, Vacaville Police Department, Suisun City Police Department, Vallejo Police Department, Antioch Police Department, Alameda County Sheriff’s Office, Benicia Police Department, Concord Police Department, California Highway Patrol, Hayward Police Department, and Fremont Police Department. Assistant U.S. Attorney Whitnee Goins is prosecuting the case. If convicted of conspiracy to commit bank robbery, the defendants face a maximum statutory penalty of five years in prison and a fine up to $250,000. The bank robbery counts carry a maximum statutory penalty of 20 years in prison and a $250,000 fine. Futch faces a maximum penalty of five years in prison and a $250,000 fine if she is convicted of perjury. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.


title: Executives plead guilty to diverting $12M from Air Force contract

body_text: ALEXANDRIA, Va. – Two executives at a contractor for the U.S. Air Force (USAF) pled guilty to theft of government property after diverting over $12 million from an Air Force contract to pay for unrelated personal and business expenses. According to court documents, Thomas D. Burns, 74, of Gainesville, and Daniel B. Tolley, 63, of Purcellville, founded SP Global, Inc. (SPG) in 2012. Burns served, at various times, as Chief Executive Officer, Chairman of the Board, and President. Tolley served, at various times, as Chief Technology Officer, President, and a member of the Board of Directors. In 2016, SPG incorporated SPG Institute, Inc. (SPGI). On Dec. 20, 2017, the United States Air Force (USAF) issued a Request for Information to initiate a collaborative research consortium for developing autonomy technologies, the Autonomy Research Collaboration Network (ARCNet). SPGI bid on and was ultimately awarded the project for over $196 million. SPGI’s payment of subrecipients for work performed under the contract relied upon “advance payments” from the Air Force Materiel Command (AFMC), which allowed SPGI to pay for research efforts in a faster, commercial-like manner. SPGI was to receive 4% of each advance payment to cover ARCNet operations and overhead. Only Burns and Tolley exercised control over bank accounts belonging to SPG and SPGI, including the SPGI ARCNet account that received advance payments intended to be held in trust for payment to subrecipients. Between March 28, 2019, and June 23, 2020, the USAF and AFMC, through the Defense Finance and Accounting Service, made a total of $27,250,000 in advance payments to the SPGI ARCNet account. SPG had previously accumulated large debts at high interest rates from a private lender in connection with its management of a prior government project and other business expenses. Those debts were personally guaranteed by Burns, Tolley, and their spouses. SPG also had spent large amounts of money on expanding its office space and maintaining staff. Burns repeatedly told SPG executives and directors that he had a “family trust” worth approximately $70 million that he could “break” at any time to make good on any debts. Burns never provided records to SPG to prove the trust existed, that it had the assets claimed, or that he had the legal right to “break” the supposed trust. In light of SPG’s revenue shortfalls and millions in personally guaranteed debts that were coming due in 2020, Burns and Tolley agreed to take “short term loans” exceeding the 4% overhead allowance from advance payments made to SPGI. Burns told Tolley and others that he could use his family trust to replace the government funds taken from SPGI, and that he preferred to take the money intended for subrecipients rather than breaking his trust due to potential personal tax consequences to him. Burns and Tolley directed SPG employees to list some of the transfers from SPGI to SPG as “short term loans,” which SPG failed to secure against Burns’ claimed assets. From January 16, 2020, through Aug. 28, 2020, Tolley transferred $11,878,000 from SPGI bank accounts to SPG’s business account. The converted ARCNet money was used to cover SPG payroll, SPG business expenses, to discharge personally guaranteed debts, and to pay tens of thousands of dollars to Burns and Tolley. For example, Tolley wrote checks from the SPG business account to Burns for $35,000 for “Repayment of Loan,” to SPG subsidiaries totaling $111,027, and to his personal business venture in Wythe County for $7,500. On one occasion, Burns and Tolley directed a wire payment of $4,683,979.72 to a private lender to cover business loans that were personally guaranteed by Burns, Tolley, and their spouses. Using money transferred from the SPGI ARCNet account to the SPG business account, Tolley wrote checks to himself totaling at least $115,000. Over $300,000 of the SPGI ARCNet account transfers to the SPG business account went to pay credit card bills for Tolley and Burns. On March 23, 2020, Tolley wrote a $150,164.56 check from the SPG business account to a private lender for loans he and Burns had personally guaranteed. An SPGI senior employee, who was a former FBI Supervisory Special Agent, strongly advised against use of ARCNet funds from the USAF for SPG business, telling Burns and Tolley that they were not entitled to use ARCNet money for unrelated purposes. A week later, Burns executed a “personal guarantee” drafted by company counsel to personally repay $3,640,000 of ARCNet funds received from the USAF. Burns did not have the personal funds or trust assets to back this personal guarantee. The USAF was never consulted about this plan to convert the ARCNet funds to SPG for payment of previous debts and other expenses. Beginning in July 2020, after the vast majority of Tolley’s “short term loan” transfers, SPGI failed to pay subrecipients against submitted invoices. Near the end of September 2020, Tolley wrote a check for payment of a subrecipient in the amount of $3,000, for which the account had insufficient funds. The bounced check set off concerns that ultimately led to the discovery of the conversion of over $12 million of ARCNet funds for the benefit of SPG, Burns, and Tolley, at the expense of the government and subrecipients. In a letter to the USAF dated Jan. 5, 2021, Burns falsely claimed the lack of payments was the result of “significant accounting issues” that would soon be fixed. Burns and Tolley also stated that subrecipients would be paid once investor money arrived from overseas. No investor money ever arrived, and subrecipients performed unpaid work and suffered losses. The ARCNet consortium was set back significantly due to the actions of Tolley and Burns. Tolley pled guilty on July 10 and is scheduled to be sentenced on Nov. 14, 2024. Burns pled guilty today and is scheduled to be sentenced on Jan. 30, 2025. Each faces up to 10 years in prison. 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; Brigadier General Amy Bumgarner, Commander of the Office of Special Investigations for the U.S. Air Force and Space Force; and David E. Geist, Acting Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after U.S. District Judge Patricia Tolliver Giles accepted the plea. The AFMC Law Office, Procurement Fraud Division provided substantial assistance in this case. Assistant U.S. Attorneys Kenneth R. Simon Jr. and Russell L. Carlberg are prosecuting the case. Assistant U.S. Attorney Maya D. Song and Former Assistant U.S. Attorney Kimberly Pedersen assisted the prosecution. 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 Nos. 1:24-cr-215 (Burns) and 1:24-cr-148 (Tolley).


title: Belton Man Sentenced for Drug Trafficking, Illegal Firearms

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Belton, Mo., man was sentenced in federal court today for leading a drug-trafficking conspiracy and for illegally possessing a firearm. Serjio Diaz, 40, was sentenced by U.S. District Judge Greg Kays to 15 years in federal prison without parole. On April 9, 2024, Diaz pleaded guilty to one count of conspiracy to distribute heroin, methamphetamine, and cocaine, one count of possessing heroin with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of money laundering. Diaz admitted that he was the primary organizer of a drug-trafficking conspiracy that lasted from Jan. 1, 2019, to June 22, 2021. The investigation began on March 18, 2019, when federal agents interdicted and seized a package from California that contained more than 4.5 kilograms of methamphetamine, which was addressed to Diaz’s residence. On the same day, federal agents also interdicted and seized a package from California that contained more than three kilograms of methamphetamine, which was addressed to the residence of his brother and co-defendant, Tony Diaz, 41, of Raymore, Mo. During the course of the investigation, investigators conducted 23 controlled transactions from Serjio and Tony Diaz, utilizing an FBI confidential source. Over the course of these controlled purchases, law enforcement purchased more than seven kilograms of methamphetamine, more than six kilograms of heroin, and 468.6 grams of cocaine from Serjio and Tony Diaz for a total of $243,900. In one transaction, for example, the confidential source purchased a kilogram of methamphetamine for $9,000 from Tony Diaz. In another instance, the confidential source purchased 222.4 grams (7.5 ounces) of cocaine from Serjio Diaz for $7,000. On June 22, 2021, law enforcement officers arrested Serjio and Tony Diaz and searched Serjio Diaz’s residences and vehicles. Officers found almost nine kilograms of heroin, 166 grams of cocaine, six bags of pills that contained fentanyl and weighed a total of 78 grams, a Glock 9mm semi-automatic pistol, and $82,250 in cash. Officers searched Tony Diaz’s residence and found 1,128 grams of suspected heroin, 28 grams of suspected cocaine, a Zastava Arms 7.62x39mm semi-automatic rifle, a Romarm Cugir 7.62x39mm semi-automatic rifle, and $5,461 in cash in Tony Diaz’s bedroom. Officers also found a Remington Arms .22-caliber rifle in a shed, one pound of suspected marijuana in his Lincoln Navigator SUV, and a Ruger 9mm semi-automatic pistol and 3.4 grams of suspected marijuana in his BMW X5. From May 1, 2019, to Dec. 31, 2020, Serjio Diaz deposited 93 money orders, totaling $82,145, into either his personal bank account or the bank account of his business, Imperial Window & Gutter Cleaning, LLC. Serjio Diaz went to multiple post offices on the same date to purchase money orders; 21 of those purchases occurred soon after a controlled drug purchase was made by law enforcement in this investigation. Serjio Diaz limited his purchase to a maximum of $2,000 at each post office in order to avoid federal reporting requirements. Tony Diaz has pleaded guilty to one count of conspiracy to distribute heroin, methamphetamine, and cocaine, one count of possessing heroin with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of being a felon in possession of a firearm. A sentencing hearing has not yet been scheduled for Tony Diaz. Co-defendant Maria Jasmin Lopez, 24, of Phoenix, Arizona, also pleaded guilty to her role in the drug-trafficking conspiracy and was sentenced on Aug. 1, 2023, to 10 years and three months in federal prison without parole. This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the U.S. Postal Inspection Service, the FBI and the Jackson County Drug Task Force. Organized Crime and Drug Enforcement Task Force This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: Former City of Pittsburgh Building Inspector Sentenced for Accepting Bribes from Developer

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 18 months of probation, including 90 days of home confinement, a $1,375 forfeiture, and a $1,500 fine on his conviction for bribery, United States Attorney Eric G. Olshan announced today. Chief United States District Judge Mark R. Hornak imposed the sentence on Walter Eiseman, 59. According to information provided to the Court, Eiseman was a building inspector for the City of Pittsburgh, where he was responsible for performing inspections of properties that were the subject of applications for certificates of occupancy. In 2018, a developer was working on a project to redevelop a commercial building in downtown Pittsburgh as luxury apartments and hotel rooms. As part of the financing for the project, the developer sought a historical tax credit, which would only be granted after the developer obtained a temporary certificate of occupancy for one of the project’s floors by the end of December 2018. As part of his guilty plea, Eiseman admitted performing inspections on two floors of the project during the month of December, which resulted in a temporary certificate of occupancy being issued. In return for such official action, Eiseman accepted home appliances from the developer, which were delivered in early January 2019. Eiseman also admitted that he solicited a set of kitchen cabinets from the developer, which were ordered but ultimately not delivered to Eiseman’s residence. Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government. U.S. Attorney Olshan commended the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Eiseman.


title: Charleston Man Sentenced to Prison for Federal Opioid Crime

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Jesus Emmanuel Davis, 25, of Charleston, was sentenced today to three years and six months in prison, to be followed by three years of supervised release, for distribution of protonitazene and isotonitazene. According to court documents and statements made in court, on April 7, 2023, Davis sold five pills to a confidential informant in Charleston. The pills were counterfeit pressed pills with the same markings as 30mg oxycodone pills. The West Virginia State Police Forensic Laboratory confirmed that the pills contained protonitazene and isotonitazene, synthetic opioids potentially more dangerous and deadly than fentanyl. Law enforcement officers conducted seven additional controlled buys during which Curon Cameron Cordon sold quantities of the same pills to a confidential informant. Cordon drove the confidential informant to Davis’ residence to obtain the pills for four of those transactions. On June 8, 2023, law enforcement officers executed a search warrant at Davis’ residence. Officers seized 95 of the same pills purchased during the controlled buys from the pocket of a jacket hanging inside Davis’ bedroom closet. Davis has a criminal history that includes multiple prior convictions including for domestic battery. Cordon, 24, of Charleston, pleaded guilty on August 1, 2024, to distribution of protonitazene and isotonitazene and awaits sentencing. United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Lesley C. Shamblin prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-51. ###


title: October Federal Grand Jury 2024-A Indictments Announced

component: USAO - Oklahoma, Northern

body_text: United States Attorney Clint Johnson today announced the results of the October Federal Grand Jury 2024-A Indictments. The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence. Emmanuel Josiah Ahaisse. Failure to Register as a Sex Offender. Ahaisse, 38, of Tulsa and a member of the Seminole Nation of Oklahoma, is charged with knowingly failing to register as a sex offender from Aug. 2023 through Oct. 2023. The U.S. Marshal Service is the investigative agency. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 24-CR-309 Dakota Yek-C’e Bear. Assault of a Spouse by Strangling and Suffocating in Indian Country. Bear, 35, of Tulsa and a member of the Muscogee (Creek) Nation, is charged with assaulting his spouse by strangulation and suffocation. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Stacey P. Todd is prosecuting the case. 24-CR-308 Victor Becerra-Gaytan. Alien Unlawfully in the United States in Possession of a Firearm. Becerra-Gaytan, 36, a Mexican National, is charged with possessing a firearm and ammunition, knowing he was an alien illegally and unlawfully in the United States. The U.S. Immigration and Custom’s Enforcement and Removal Operations, the Homeland Security Investigations, and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Niko Boulieris is prosecuting the case. 24-CR-319 Justin Earl Braziel. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Braziel, 31, of Quapaw and a member of the Ottawa Tribe of Oklahoma, is charged with assaulting the victim with intent to do bodily harm and discharging a firearm during a crime of violence. The FBI and Quapaw Nation Marshal Service are the investigative agencies. Assistant U.S. Attorney Mallory Richard is prosecuting the case. 24-CR-327 Paul Jimenez Diaz. Drug Conspiracy; Possession of Fentanyl with Intent to Distribute; Possession of Heroin with Intent to Distribute; Possession of Methamphetamine with Intent to Distribute; Possession of Cocaine with Intent to Distribute; Maintaining a Drug-Involved Premises. Diaz, 37, a Mexican National, is charged with conspiring to distribute fentanyl, heroin, methamphetamine, and cocaine. He knowingly possessed more than 500 grams of fentanyl, 100 grams of heroin, more than 50 grams of methamphetamine, and cocaine with the intention of distributing. Diaz additionally maintained a residence to distribute fentanyl, heroin, methamphetamine, and cocaine. The Drug Enforcement Administration, Homeland Security Investigation, and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Mandy M. Mackenzie is prosecuting the case. 24-CR-323 Nathan Alexander Gabbert. Assault with a Dangerous Weapon with Intent to do bodily Harm in Indian Country; Felon in Possession of a Firearm and Ammunition. Gabbert, 34, of Glenpool and a member of the Choctaw Nation of Oklahoma, is charged with assaulting three victims with a dangerous weapon. He is additionally charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney George Jiang is prosecuting the case. 24-CR-310 Erik Garcia. Felon in Possession of a Firearm and Ammunition. Garcia, 45, of Okmulgee, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney John Brasher is prosecuting the case. 24-CR-320 Christopher Michael Helton. Felon in Possession of a Firearm and Ammunition; Possession of Methamphetamine with Intent to Distribute; Carrying a Firearm During and in Relation to a Drug Trafficking Crime. Helton, 47, of Coweta, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. He knowingly possessed more than 50 grams of methamphetamine with intent to distribute. Helton additionally carried a firearm while drug trafficking. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney John W. Dowdell is prosecuting the case. 24-CR-311 Makale Kareem Lewis. Felon in Possession of a Firearm and Ammunition (Counts 1 & 2) (superseding). Lewis, 22, of Tulsa, is charged with two counts of possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Christian Harris is prosecuting the case. 24-CR-288 Gabriel Acevedo Medina. Felon in Possession of a Firearm and Ammunition; Kidnapping in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Medina, 39, of Marietta, Georgia, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. He also kidnapped a victim and used a dangerous weapon to assault the victim. Further, Medina is charged with brandishing a firearm during a crime of violence. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Broken Arrow Police Department are the investigative agencies. Assistant U.S. Attorney John Brasher is prosecuting the case. 24-CR-322 Clint Kyle Sutton. Felon in Possession of a Firearm and Ammunition; Malicious Destruction of Property in Indian Country. Sutton, 43, of Spavinaw and a member of the Cherokee Nation, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. Additionally, Sutton is charged with willfully and maliciously destroying property not belonging to him. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mayes County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Michele W. Hulgaard is prosecuting the case. 24-CR-321


title: Former Ambridge Water Authority Manager Pleads Guilty to Defrauding Utility of More Than $1 Million Over Two-Year Period

body_text: PITTSBURGH, Pa. - A resident of Aliquippa, Pennsylvania, pleaded guilty in federal court on October 8, 2024, to a charge of mail fraud, United States Attorney Eric G. Olshan announced today. Michael Dominick, 44, pleaded guilty to one count before United States District Judge Cathy Bissoon. In connection with the guilty plea, the Court was advised that Dominick, a former manager at the Ambridge Water Authority (AWA), defrauded AWA of money and property totaling approximately $1,073,185 during the period of January 2020 through August 2022. As manager of AWA, Dominick was responsible for overseeing all daily business and financial activity and thus had access to AWA’s bank accounts and cash and check payments made to AWA for water and related services. Dominick admitted that he secretly diverted AWA’s money into his own personal bank accounts by writing checks to himself, depositing cash and checks issued to AWA into his personal bank accounts, using an AWA debit card to make purchases of personal items, and adjusting or failing to report the true location of AWA’s funds on critical financial records. “Michael Dominick’s theft of more than a million dollars from the Ambridge Water Authority is an alarming violation of the public trust,” said U.S. Attorney Olshan. “Those who hold positions of authority at any level of government—and particularly those who are responsible for managing and safeguarding public finances—owe a special duty to act in the best interest of their employer and the community. Our office and our partners in law enforcement will continue to root out and hold accountable public officials who violate federal law and undermine public confidence in government.” “This plea marks a significant step toward justice,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “This fraud not only affects critical public resources, but also represents a betrayal of public trust. The AWA exists to provide an essential resource to our community. Stealing money in this manner has the potential to directly impact the well-being of tens of thousands of people.” Judge Bissoon scheduled sentencing for February 20, 2025. The law provides for a total sentence of up to 20 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government. The Federal Bureau of Investigation and Beaver County District Attorney’s Office conducted the investigation that led to the prosecution of Dominick.


title: Disabilities Day Program Employee Sentenced to 230 Days in Jail for Exploiting Vulnerable Adults and Shoplifting

component: Office of the Inspector General

body_text: WASHINGTON — Danielle Marquita Baltimore, 40, of the District of Columbia, was sentenced today to 180 days of incarceration for financial exploitation of a vulnerable adult or elderly person, and 50 days for shoplifting. Each sentence will run concurrent to each other. The announcement was made today by U.S. Attorney Matthew M. Graves, and Daniel W. Lucas, Inspector General for the District of Columbia. Baltimore pleaded guilty to the two charges on October 2, 2024, before the Honorable Robert Rigsby, in the Superior Court of the District of Columbia. According to the government’s evidence, Baltimore worked as a direct support professional at Innovative Day, LLC, a day program for adults with developmental disabilities. Baltimore’s duties included taking individuals who require assistance or supervision in a safe environment outside the home during the day. Along with her guilty plea, Baltimore admitted that on or about December 20, 2023, Baltimore took two vulnerable adults who suffer from cognitive and developmental disabilities to Walmart, located at 310 Riggs Rd NE, Washington, DC. While at Walmart, Baltimore coerced the two vulnerable adults under her care into shoplifting items on her behalf. Baltimore placed items consisting of sneakers, clothing, and various merchandise in bags and gave the bags to the victims. Baltimore instructed the victims to exit Walmart without paying for the items. After leaving Walmart, Baltimore retrieved all of the concealed items from the victims. One victim stated they felt bad for shoplifting but complied for fear Baltimore would harm them for refusing. This prosecution is part of the Office’s wider efforts to combat crimes against seniors and vulnerable adults. In 2018, the U.S. Attorney’s Office for the District of Columbia launched an initiative to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. The U.S. Attorney’s Office’s Elder Abuse and Financial Exploitation Initiative partners with the D.C. Office of the Inspector General’s Medicaid Fraud Control Unit (MFCU), which is statutorily responsible for investigating and prosecuting District Medicaid provider fraud as well as abuse or neglect of residents in health care facilities and board and care facilities and of District Medicaid beneficiaries in noninstitutional or other settings. This prosecution is indicative of the continued collaboration between the U.S. Attorney’s Office and the D.C. Office of the Inspector General to investigate and prosecute cases of this kind. The government urges the public to provide tips and assistance to stop health care fraud. If you have information about individuals committing health care fraud, please call the D.C. Office of the Inspector General at 202-724-TIPS [202-724-8477]. In announcing the sentence, U.S. Attorney Graves and Inspector General Lucas acknowledged the work of those who investigated and prosecuted the case from the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia and the Office of Inspector General’s MFCU. They also commended the efforts of Special Assistant United States Attorney Emmanuela Charles, on detail from the MFCU, who prosecuted the case, and MFCU Special Agents Eduardo Torre and Victor Richardson, who investigated the matter.


title: Two Los Angeles-Area Residents Arrested on Indictment Alleging Scheme to Fraudulently Obtain and Launder Medicare Proceeds

component: USAO - California, Central

body_text: LOS ANGELES – A Los Angeles woman and a San Fernando Valley man were arrested today on a 24-count federal grand jury indictment alleging a scheme to defraud Medicare out of more than $54 million via hospice and diagnostic testing services that were never provided and then laundered their illicit proceeds, including by buying millions of dollars’ worth of gold bars and coins. Sophia Shaklian, 36, of the Larchmont area of Los Angeles, and Alex Alexsanian, 47, of Burbank, were arrested early this morning. They are scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles. Shaklian is charged with 16 counts of health care fraud and four counts of transactional money laundering. Alexsanian is charged with one count of conspiracy to launder monetary instruments and three counts of concealment money laundering. According to the indictment that a federal grand jury returned on October 2, Shaklian, often using aliases, managed and submitted claims for seven health care providers enrolled with Medicare and located in Los Angeles County. These businesses included a hospice company she owned – the Pasadena-based Chateau d’Lumina Hospice and Palliative Care – and several diagnostic testing companies: Saint Gorge Radiology in Sylmar; Hope Diagnostics in North Hollywood; Direct Imaging & Diagnostics and Lab One – both located in Hollywood; and Labtech and Lifescan Diagnostics in Claremont. From March 2019 to August 2024, these companies allegedly submitted more than $54 million in fraudulent claims to Medicare for services that were never provided and not needed. In total, they received more than $23 million for those claims. Shaklian allegedly laundered Medicare funds paid to Chateau by transferring them to accounts in the name of “Varsenic Babaian,” a synthetic or fake identity. Alexsanian allegedly directed a foreign national to open Saint Gorge Radiology, and to acquire Medicare provider Console Hospice in Van Nuys, and then provide control of those companies and their bank accounts and the foreign national’s personal bank accounts to Alexsanian. Alexsanian conspired with the foreign national (who soon left the country) and others to have Saint Gorge Radiology and Console Hospice submit fraudulent claims to Medicare for services not provided and then laundered the Medicare reimbursements they received, as well as funds deposited into their accounts through the “Babaian” identity, and used them to, among other things, buy more than $6 million in gold bars and coins. An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt. If convicted of all charges, Shaklian would face a statutory maximum sentence of 10 years in federal prison for each health care fraud count and up to 20 years in federal prison for each money laundering count. Alexsanian would face up to 20 years in federal prison for each count. The United States Department of Health and Human Services Office of the Inspector General and the FBI are investigating this matter. Assistant United States Attorney Kristen A. Williams of the Major Frauds Section is prosecuting this case.


title: Eastern Idaho Attorney Sentenced to 42 Months in Federal Prison for Drug Trafficking Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: POCATELLO – Robin Dwain Dunn, 69, of Rigby, was sentenced to 42 months in federal prison for his role in a drug trafficking conspiracy in Eastern Idaho. Senior U.S. District Judge B. Lynn Winmill also ordered Dunn to pay a $50,000 fine and to serve three years of supervised release following his prison sentence. Court records indicate that from June 2022 to February 2023, Dunn—an attorney practicing in Eastern Idaho—agreed with clients and others to distribute controlled substances. During the conspiracy, Dunn and a client made two trips to the Salt Lake City area to pick up methamphetamine and fentanyl. Dunn and the client then brought the drugs back to Idaho for distribution to others. Court records further indicated that in November 2022, Dunn caused fentanyl to be distributed into a correctional facility (the Bonneville County Jail) to an inmate client. Dunn agreed that he abused a position of trust by using his position as an attorney to further his drug trafficking activities. “This is a disturbing case in which at attorney endangered his community and jeopardized the integrity of the criminal justice system by distributing deadly drugs,” said U.S. Attorney Hurwit. “Upholding the rule of law means investigating crimes where they should be least expected to occur and holding everyone to the same standards, especially professionals who took an oath to uphold the law. My office is lucky to have law enforcement partners who feel the same way.” “The Drug Enforcement Administration and our partners work hard to hold people accountable for drug trafficking offenses, regardless of their jobs or backgrounds,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “I am proud of the work our team has done in this case and grateful for the strong message this sentence sends to others who would violate the ethical standards of our society.” “Teamwork is the cornerstone of successful law enforcement, and this case exemplifies what can be achieved when multiple agencies work together,” said Lieutenant Clint Skinner, Idaho State Police. “By leveraging the expertise and resources of local, state, and federal partners, we were able to dismantle a dangerous drug network and hold those responsible accountable.” U.S. Attorney Hurwit thanked the Drug Enforcement Administration, the Idaho Falls Police Department, the Bonneville County Sheriff’s Office, the Jefferson County Sheriff’s Office, and the Idaho State Police for their work and collaboration on this case. This case was prosecuted by Assistant U.S. Attorneys Frank Zebari and Christopher Atwood. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. ###


title: Man Who Narrated Child’s Sexual Assault on Video Sentenced to 20 Years in Prison

component: USAO - Texas, Northern

body_text: A 43-year-old man who narrated the sexual assault of a 14-year-old on video has been sentenced to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Vincent Jerome Thompson and his coconspirator, Lukumond Adebola Olatunji, 46, were indicted in January 2022. Mr. Thompson pleaded guilty in June 2024 to production of child pornography and aiding and abetting; Mr. Olatunji pleaded guilty to kidnapping a minor two months later. Mr. Thompson was sentenced Wednesday by U.S. District Judge Ed Kinkeade to 240 months in federal prison, followed by lifetime term of supervised release, and ordered to register as a sex offender. Mr. Olatunji is slated to be sentenced in December. “No child deserves to suffer the degradation this child endured,” said U.S. Attorney Leigha Simonton. “The callousness of the defendant’s commentary on the video he shot, even as the victim plead with the perpetrators to be let go, shocks the conscience. The U.S. Attorney’s Office is proud to stand up for this little girl – and every child abused in this manner.” “This defendant and his cohort coerced and sexually abused a child without regard for the lifelong trauma their actions would cause their victim, “said Travis Pickard, Special Agent in Charge of HSI Dallas. “Protecting minors from child predators remains a high priority for HSI. We will never relent in our efforts to apprehend those who seek to abuse our most vulnerable citizens.” According to plea papers, the men admit that on Oct. 23, 2021, they approached a 14-year-old girl and offered her a ride home. They then drove to an alleyway where Mr. Olatunji sexually assaulted her in the backseat of the car. Mr. Thompson recorded the assault on his cell phone, providing commentary as the assault progressed. On the video, the child can be heard saying, “I don’t want to do it no more,” and “can we go?” The pair then took the child to a nearby motel, where both men continued to sexually assault her. After approximately five hours inside the motel room, the child ran out of the room carrying her backpack and shoes. Police responded and searched the motel room, where they found condom wrappers and drug paraphernalia. In interviews with law enforcement, both men admitted to engaging in sexual intercourse with the child. Mr. Olatunji admitted that the child repeatedly told them that she did not want to have sex anymore. At Wednesday’s sentencing hearing, the prosecutor noted that the victim was intellectually disabled. Homeland Security Investigation’s Dallas Field Office and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Jenna Rudoff and Joe Magliolo (fmr.) are prosecuting the case