title: Singapore Resident Sentenced To 57 Months In Prison For Soliciting Millions Of Dollars In Pre-IPO Stock Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that SHAMOON RAFIQ, a/k/a “Shamoon Omer Rafiq,” a/k/a “Omar Rafiq,” a/k/a “Omer Rafiq,” was sentenced today by U.S. District Judge Victor Marrero to 57 months in prison for engaging in a scheme in which RAFIQ solicited millions of dollars of investors’ money by falsely representing that he was offering investments in shares of stock in privately held companies that had not yet conducted an initial public offering (“pre-IPO stock”), even though he did not actually have those shares to offer, by impersonating senior officials of a reputable family office investment firm and by engaging in other acts of deception. RAFIQ previously pled guilty to conspiracy to commit securities fraud and wire fraud before U.S. Magistrate Judge Sarah L. Cave. U.S. Attorney Damian Williams said: “Today’s sentence demonstrates that stiff penalties await anyone who seeks to cheat and swindle American investors, and that running an investment scheme from halfway around the world will not shield fraudsters from being pursued by this Office and our law enforcement partners.” According to the charging documents and other filings and statements made in court: RAFIQ was born in the Netherlands and resided in Singapore. RAFIQ was convicted in 2004 in the U.S. District Court for the Eastern District of New York for carrying out a wire fraud scheme in which he purported to sell pre-IPO stock in a privately held company that had not yet conducted its initial public offering when, in fact, RAFIQ did not own or have access to such stock. After serving a 41-month federal prison sentence for that crime, RAFIQ was deported from the U.S. and eventually relocated to Singapore. In or about 2020, RAFIQ engaged in a new scheme from Singapore to defraud victims into paying him millions of dollars for alleged investment interests in various pre-IPO stocks that he did not actually own or control. In connection with his new fraud scheme, RAFIQ fraudulently impersonated two senior officials (“Victim-1” and “Victim-2”) of a prominent family office investment firm (“FamCap”) that manages and invests assets of members of a prominent billionaire family. In July 2020, RAFIQ caused the creation of a fake FamCap website, which automatically routed users to the official FamCap website, and the creation of fake FamCap email addresses for Victim-1 and Victim-2 that closely resemble, but are slightly different from, their genuine FamCap email addresses. The fake FamCap website and email addresses for Victim-1 and Victim-2 were created without their or FamCap’s consent. The fake email addresses also included the names of Victim-1 and Victim-2 without their authorization. In July 2020, RAFIQ began soliciting millions of dollars from investment firms in New York and elsewhere based on false claims that in exchange for their funds, he would sell them investment interests in a purported special purpose investment vehicle called “[Fam] Capital Technology Fund, LLC” that was supposedly managed by FamCap and allegedly owned pre-IPO stock in Airbnb, Inc., among other companies. For example, as part of this fraudulent scheme, RAFIQ deceived an investment firm based in New York, New York (the “New York Firm”), and one of the firm’s foreign institutional clients (the “Foreign Client”) into making agreements under which the Foreign Client wired about $9 million in mid-August 2020 into an escrow account in New York for anticipated release to a bank account in Singapore to pay RAFIQ for his purported sale of investment interests in the LLC. In soliciting this $9 million investment, RAFIQ made a variety of false representations, including the following: RAFIQ falsely claimed that the LLC was managed by FamCap. In fact, the LLC never existed. RAFIQ falsely claimed that the LLC owned pre-IPO shares of Airbnb, Inc. In fact, the LLC did not own and could not have owned such stock because the LLC never existed. RAFIQ falsely claimed that Victim-1 and Victim-2 had approved of his sale of his alleged interests in the LLC. In fact, Victim-1 and Victim-2 do not know RAFIQ and have confirmed that FamCap was never involved in or approved of any such transaction. During and to further the goals of this fraudulent scheme, RAFIQ also caused the creation and transmission of emails from the fake FamCap email addresses, fake contracts, and deal documents purporting to have been signed by Victim-1 or Victim-2 on behalf of FamCap that neither of them approved. In August 2020, during the course of email communications with the New York Firm and Foreign Client concerning RAFIQ’s alleged sale to them of his purported interests in the alleged FamCap-managed LLC that supposedly held Airbnb, Inc. shares, RAFIQ copied into the email chain the fake FamCap email addresses to create the false impression that FamCap was involved in and approved of the alleged transaction. Also pursuant to the fraudulent scheme, RAFIQ solicited over $1 million from an investment group located in California (the “California Group”) in late 2020 by yet again purporting to be a representative of FamCap offering pre-IPO stock for sale. As a result, the California Group wired RAFIQ a total of approximately $1,002,615 in November and December 2020. * * * In addition to his prison term, RAFIQ, 50, a resident of Singapore and a citizen of the Netherlands, was ordered to pay restitution and forfeiture in the amount of $1,002,615. Mr. Williams praised the investigative work of Homeland Security Investigations, the U.S. Postal Inspection Service, the New York City Police Department, and the New York City Sheriff’s Office, and he also thanked the U.S. Securities and Exchange Commission, which conducted a separate parallel investigation, for its assistance, and the Department of Justice’s Office of International Affairs, Interpol, Singapore Police Force, and the Attorney-General’s Chambers of Singapore for their assistance in the extradition of the defendant. This case is being handled by this Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jared Lenow is in charge of the prosecution.


title: Federal Jury Finds Nigerian Man Guilty of Money Laundering and Aiding and Abetting Wire Fraud and Mail Fraud

component: USAO - North Dakota

body_text: BISMARCK – United States Attorney Mac Schneider announced that on May 16, 2024, after a four-day trial, a federal jury found Nigerian citizen Christopher Agbaje guilty on charges of 1) Money Laundering; 2) Aiding and Abetting Wire Fraud; and 3) Aiding and Abetting Mail Fraud. The jury found Agbaje not guilty on charges of 1) Wire Fraud; and 2) Mail Fraud. United States District Court Judge Daniel M. Traynor presided over Agbaje’s jury trial in Bismarck, North Dakota, after Agbaje was extradited to North Dakota from the United Kingdom. As demonstrated at trial, between November and December 2020, the defendant participated with others in a sophisticated scheme to defraud a North Dakota law firm out of $198,336.68. As part of this scheme, individuals falsely purported to be a business owner in a legal dispute with a Bismarck, North Dakota, company and entered into a fictious attorney-client relationship with this law firm. Through email communications, these individuals made false statements and promises, upon which the law firm relied to their detriment. Thereafter, the law firm received a parcel containing a fraudulent Citibank check payable to the law firm in the amount of $198,850.00 and deposited this check in the law firm’s bank account. Subsequently, at the purported business owner’s request, the law firm sent a $198,336.68 wire transfer to Agbaje’s business partner. A short time later, Agbaje directed his business partner to fraudulently initiate a $180,000.00 international wire transfer with the intent to conceal the location, ownership, and control of the law firm’s money. “Our determined career prosecutors and their law enforcement partners will cross oceans to bring international fraudsters to justice when they target North Dakota,” Schneider said. “I commend our trial team for the hard work and skill that went into this result. Combatting fraud — whether it’s homegrown or from overseas — will continue to be a high priority for the United States Attorney’s Office.” "The FBI will aggressively investigate individuals, like Christopher Agbaje, who engage in fraudulent schemes at the expense of the American public," said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. "The guilty verdict today underscores the FBI, the Justice Department’s Office of International Affairs, and the North Dakota U.S. Attorney's Office's dedication to collaborating with global partners in tackling fraud on an international scale to protect the American people." The District Court will schedule Agbaje’s sentencing hearing for a date and time to be determined. This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Jonathan J. O’Konek and Nick Baker. The Justice Department’s Office of International Affairs provided substantial assistance with securing the arrest and extradition of Agbaje. ######


title: Allport Man Pleads Guilty to Narcotics, Firearms, and Money Laundering Charges

body_text: JOHNSTOWN, Pa. – A resident of Allport, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics, firearms, and money laundering laws, United States Attorney Eric G. Olshan announced today. Alexis Brolin, Jr., 55, pleaded guilty before United States Senior District Judge Kim R. Gibson to Counts Two through Five of the Superseding Indictment. In connection with the guilty plea, the Court was advised that, from in and around July 2019 to in and around April 2020 in the Western District of Pennsylvania, Brolin conspired with others to distribute and possess with intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine. Brolin, who directed the drug trafficking organization’s activity in Clearfield and surrounding areas, was intercepted on a federal wiretap obtaining kilogram quantities of methamphetamine that he distributed to others, and was arrested in possession of more than 650 grams of methamphetamine destined for Clearfield during an April 2020 interdiction stop. Through the execution of a search warrant at Brolin’s residence on the day of his arrest, law enforcement agents seized additional quantities of methamphetamine as well as 11 firearms and ammunition, including five shotguns, two rifles, an AK-style rifle, and three pistols, with numerous of the firearms not having serial numbers. Under federal law, Brolin was prohibited from possessing any firearm or ammunition based on an earlier felony conviction for robbery, with Brolin also pleading guilty to possessing a firearm in furtherance of his drug trafficking crime. Additionally, from in and around July 2019 to June 2020, Brolin conspired to commit money laundering by having various distributors pre-pay him for the drugs he was to provide them through money wires to and from various locations within Western Pennsylvania. Judge Gibson scheduled sentencing for September 20, 2024. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant. Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government. The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Brolin. Additional agencies participating in this investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service–Criminal Investigation, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies. 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: David DePape Sentenced after Conviction on Assault and Attempted Kidnapping Charges

component: Office of the Attorney General

body_text: David DePape, 44, of Richmond, California, was sentenced today to 360 months in prison and five years of supervised release, following his conviction on assault and attempted kidnapping charges in connection with his Oct. 28, 2022, intrusion into the home of Speaker Emerita Nancy Pelosi and her husband, Paul Pelosi. “This sentence is a warning: violence against those who serve the public and their families will not be tolerated,” said Attorney General Merrick B. Garland. “The Justice Department will aggressively prosecute those who target public servants and their families with violence. In a democracy, people vote, argue, and debate to achieve the policy outcome they desire. But the promise of democracy is that people will not employ violence to affect that outcome.” “David DePape, when he planned his attempted kidnapping, claimed he intended to punish the Speaker Emerita and teach Congress as a whole a lesson,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “He then violently assaulted Mr. Pelosi. Today’s sentence is a stern reminder to those who pursue violence against public officials and institutions that significant punishment will follow. I want to thank the FBI, the San Francisco Police Department, the U.S. Capitol Police, and the members of my prosecution team — including Helen Gilbert, Laura Vartain, and Maddie Wachs — for bringing this matter to a swift and decisive conclusion. We hope that the conclusion of the federal case brings a measure of healing to Mr. Pelosi and his family.” “Today’s sentencing of David DePape to a significant prison term sends a clear message that violence and intimidation have no place in our community or our political discourse,” said Special Agent in Charge Robert Tripp of the FBI San Francisco Field Office. “DePape's attack, fueled by misguided ideology, underscores the dangers posed by extremist beliefs. The FBI is committed to protecting all citizens and ensuring that our democracy remains strong and resilient against those who seek to harm it.” The evidence at trial established that, weeks before the attack, DePape targeted Nancy Pelosi, who was then Speaker of the U.S. House of Representatives, and collected personal information about her, including her home address. DePape kept the information in a computer file he labeled “favorite politicians.” DePape intended to kidnap the then-Speaker, hold her hostage, and break her kneecaps. The evidence at trial demonstrated that on the night of the assault, DePape used public transportation to travel from the East Bay to San Francisco while carrying two backpacks that contained a hammer, sledgehammer, duct tape, rope, zip ties, and electronic items, among other items. After arriving at the Pelosi residence, DePape used the hammer to break the window of a glass door and enter the home. Then-Speaker Pelosi was not home and her husband, Paul Pelosi, was sleeping on the third floor of the home. DePape roamed the home until he found Paul Pelosi in the third-floor bedroom. The trial evidence demonstrated that DePape woke Paul Pelosi and, while standing three to four feet from him holding the hammer and restraints, made various threats including, “I will take you out.” Paul Pelosi managed to walk to his bathroom and call 9-1-1, during which he carefully used language to alert the emergency operator to the situation without agitating DePape. Paul Pelosi convinced the defendant to go downstairs to the first floor and continued talking to DePape. When the police arrived, Paul Pelosi opened the door and the police ordered DePape to drop the hammer he was holding. Instead, DePape struck Paul Pelosi three times with full force, fracturing his skull. The responding officers immediately tackled DePape and took him into custody. On Nov. 9, 2022, a federal grand jury indicted DePape, charging him with one count of assault upon an immediate family member of a U.S. official with the intent to impede, intimidate, or interfere with the official while engaged in the performance of official duties or with intent retaliate against the official on account of the performance of official duties, and one count of attempted kidnapping of a U.S. official on account of the performance of official duties. A jury convicted DePape of both charges. DePape will receive credit for the little over 18 months that he has been in custody since his crime. The FBI San Francisco Field Office, U.S. Capitol Police, and San Francisco Police Department are investigating the case. The U.S. Attorney’s Office for the Northern District of California’s National Security and Cyber Section is prosecuting the case.


title: Staten Island Man Sentenced to 33 Months in Prison for $1.9 Million Baby Formula Scheme

component: USAO - New York, Eastern

body_text: BROOKLYN, NY – Earlier today in federal court in Brooklyn, Vladislav Kotlyar was sentenced by United States District Judge William F. Kuntz II to 33 months in prison and ordered to pay approximately $738,000 in restitution and forfeit approximately $1 million for his role in a scheme to fraudulently obtain specialty baby formula. Kotlyar pleaded guilty to mail fraud in March 2023. Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the sentence. Kotlyar submitted and caused the submission of forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. Kotlyar obtained prescriptions and medical records for infants who were prescribed baby formula and forged those records to obtain specialty baby formula. After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including by impersonating the infants’ parents, to falsely claim that shipments were damaged or contained the incorrect formula to acquire additional formula at no additional cost. Kotlyar then sold the fraudulently obtained formula. A portion of Kotlyar’s scheme occurred during a national shortage of infant formula. Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case. Assistant United States Attorney Claire S. Kedeshian of the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters. The Defendant: VLADISLAV KOTLYAR Age: 45 Staten Island, New York E.D.N.Y. Docket No. 23-CR-75 (WFK)


title: Sixteen Individuals Charged for Their Roles in Drug Trafficking Organization

component: USAO - New Jersey

body_text: NEWARK, N.J. – Nine people have been arrested for their alleged roles in a drug trafficking organization that distributed fentanyl, heroin, cocaine, and methamphetamine in Newark, U.S. Attorney Philip R. Sellinger announced today. Jaquan Beard, 25, Joseph Feliciano, 40, Carlos Lopez, 50, George Lopez, 49, Tyree Malone, 36, and David Quinones, 29, all of Newark; Wilberto Cotto, 41, Reinaldo Cruz, 44, Steven Garcia, 48, Adolphus Hunter, 48, Jermaine Jones, 37, and Nelson Valentin, 37, all of Elizabeth, New Jersey; Joel Hernandez, 28, of Parlin, New Jersey; Jonathan Arce, 36, of Belleville, New Jersey; and Jose Correa, 53, of Yardley, Pennsylvania, are each charged by complaint with one count of conspiracy to distribute methamphetamine, cocaine, fentanyl, and heroin. George Lopez is also charged with one count of possession with intent to distribute methamphetamine and cocaine, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of illegal possession of firearms and ammunition. Reynaldo Cruz, 27, of Elizabeth, is charged by complaint with one count of possession with intent to distribute controlled substances and one count of conspiracy to use and carry a firearm during and in relation to a drug trafficking crime. Reynaldo Cruz and Quinones are scheduled to appear today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. Arce, Cotto, Reinaldo Cruz, Feliciano, Hernandez, Hunter, and Carlos Lopez appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on May 16, 2024, and were detained. Jones, George Lopez, and Valentin are detained on state charges. Beard, Correa, Garcia, and Malone are at large. According to documents filed in this case and statements made in court: Reinaldo Cruz, Feliciano, Hernandez, and Quinones distributed controlled substances on behalf of the drug trafficking organization (DTO) in and around Essex and Union counties, New Jersey, from several specific distribution locations. Beard, Correa, Cotto, Garcia, Hunter, Jones, Carlos Lopez, Malone, and Valentin, in turn, received controlled substances, often from one of these locations, and distributed them on behalf of the DTO. Arce served as a source of supply of controlled substances for the DTO. The investigation has also revealed that George Lopez provided advice and connections regarding sources of supply of controlled substances from jail while he received cash from the DTO. Many of the defendants are members and associates of the Latin Kings street gang, and some members are known to possess firearms in connection with the DTO’s activities. The investigation has revealed that the DTO distributed in excess of 50 grams of methamphetamine, 5 kilograms of cocaine, 40 grams of fentanyl, and 100 grams of heroin. The methamphetamine and cocaine conspiracy count carries a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine. The fentanyl and heroin conspiracy and methamphetamine and cocaine possession counts each carries a mandatory minimum penalty five years in prison, maximum potential penalty of 40 years in prison, and a $5 million fine. The possession with intent to distribute controlled substances count carries a maximum potential penalty of 20 years in prison and a $1 million fine. The possession of firearms in furtherance of a drug trafficking crime count carries a mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed. The conspiracy to use and carry a firearm during and in relation to a drug trafficking crime count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The illegal possession of firearms and ammunition count carries a maximum potential penalty of 15 years in prison and a $250,000 fine. U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel and Chief Harvey A. Barnwell; and the Elizabeth Police Department, under the direction of Police Director Earl Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked the Union County Police Department, under the direction of Chief Martin Mogensen; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; the Essex County Sherriff’s Department, under the direction of Sheriff Armando B. Fontoura; the Hudson County Department of Corrections, under the direction of Director Becky Scott; the Cranford Police Department, under the direction of Chief Ryan Greco; the Bloomfield Police Department, under the direction of Chief George Ricci; the New Jersey State Police SWAT Team, under the direction of Col. Patrick J. Callahan: the Newark Police Department, under the direction of Public Safety Director Fritz Fragé and Chief Emmanuel Miranda; the Hudson County Regional SWAT Team, under the direction of Prosecutor Esther Suarez; and the U.S. Marshals Services, under the direction of Special Agent in Charge Juan Mattos Jr. The government is represented by Assistant U.S. Attorneys John Mezzanotte of the Organized Crime and Gangs Unit and Eli Jacobs of the General Crimes Unit of the U.S. Attorney’s Office. The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty. reynaldocruz.complaint.pdf arceetal.complaint.pdf


title: Man Sentenced to 24 Years in Prison for Shooting Two Men, Killing One and Severely Wounding the Other

component: USAO - District of Columbia

body_text: WASHINGTON – DeJuan Bell, 47, of Washington, D.C., was sentenced today to a total of 24 years in prison for the December 2021 murder of Davon Childs and the shooting of another individual. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). Bell pleaded guilty on March 1, 2024. On May 17, 2024, Superior Court Judge Marisa J. Demeo sentenced Bell to 24 years in prison, with five years of supervised release for second degree murder while armed to run concurrently with the sentence of 12 years in prison for aggravated assault while armed and five years of supervised release for that charge. According to the government’s evidence, with which Bell agreed, on the evening of December 10, 2021, at approximately 10:00 p.m., in the second floor hallway of an apartment building located in the 2300 block of 4th Street NE, Bell intentionally fired a 9mm semi-automatic handgun at least seven times in the direction of two unarmed people, striking both and killing one of them. In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those investigating the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Lauren Douglas and former Paralegal Debra Forte. Finally, they commended the work of Assistant U.S. Attorneys Erin DeRiso and Sarah Santiago, who investigated and prosecuted the case.


title: Altus Man Convicted for Lying about Pending Criminal Charges during Purchase of a Rifle

component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – ANGEL LUIS GARCIA-NAVEDO , 27, of Altus, has been found guilty after a bench trial of making a false statement during the purchase of a firearm, announced U.S. Attorney Robert J. Troester. On August 16, 2023, a federal grand jury returned a two-count Indictment against Garcia-Navedo, charging him with making a false statement during the purchase of a firearm and with illegal receipt of a firearm by a person under indictment. On May 14, 2024, the case proceeded to a bench trial on the false statement count, after which the Court found Garcia-Navedo guilty. According to evidence presented at trial, in April 2023, Garcia-Navedo visited an Altus federal firearm licensee (FFL) to initiate the purchase of a rifle. To do so, Garcia-Navedo was required to complete Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473. This Form requires buyers to answer several questions, including those about the buyer’s competency, criminal history, drug use, immigration status, and history with domestic violence. Federal law prohibits knowingly making any false statement in connection with purchasing, or attempting to purchase, a firearm. On the ATF Form 4473, evidence at trial showed that Garcia-Navedo indicated that he was not under indictment or information for a felony or a crime for which he could be imprisoned for more than one year. Public record reflects, however, that at the time that he completed the ATF Form 4473, Garcia-Navedo was charged by information with two felony offenses in Jackson County District Court. At sentencing, Garcia-Navedo faces up to 10 years in federal prison, a fine of up to $250,000, and up to three years of supervised release. This case is the result of an investigation by the ATF and the Altus Police Department. Assistant U.S. Attorneys Danielle M. Connolly, Mary E. Walters, and Steven W. Creager are prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of PSN and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001. This case is also part of "Operation 922," the Western District of Oklahoma’s implementation of PSN, which prioritizes prosecution of federal crimes connected to domestic violence. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok . Reference is made to public filings for additional information.


title: Nurse Sentenced to Federal Prison for Stealing Pain Medication from Patients and Fined $20,000

component: USAO - Iowa, Northern

body_text: A Carroll County registered nurse who stole controlled substances from patients and falsified medical records at a life care center where she was employed was sentenced today to 7 months in federal prison and ordered to pay a $20,000 fine. Cassandra Lynne Vonnahme, age 32, from Arcadia, Iowa, pled guilty to one count of acquiring a controlled substance by means of misrepresentation, fraud, deception, and subterfuge, and one count of false statements relating to health care matters on November 30, 2023. Vonnahme admitted that between November 2020 and December 2020, she diverted controlled substances and falsified related medical records. The controlled substances Vonnahme stole and the records she falsified pertained to actual patients. Evidence at sentencing also revealed that Vonnahme burglarized 5-6 homes after losing her job as a nurse for stealing patient’s medication. Vonnahme was later convicted of impersonating a public official after another burglary in Carroll County in 2021, where she pretended to be a county assessor in order to gain entry into a stranger’s home and then stole controlled substances. Vonnahme was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 7 months’ imprisonment and fined $20,000. She must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system. Vonnahme was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set. The case is being investigated by the Iowa Department of Inspections & Appeals, Medicaid Fraud Control Unit and is being prosecuted by Assistant United States Attorney Ron Timmons. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-4019. Follow us on Twitter @USAO_NDIA.


title: Puerto Rico Legislator and her Husband Sentenced for Theft, Bribery, and Kickback Scheme

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – A Puerto Rico legislator and her husband were sentenced today for engaging in a multi-year theft, bribery, and kickback conspiracy scheme to fraudulently inflate the salary of a legislative assistant in exchange for a portion of the assistant’s inflated salary. María Milagros Charbonier-Laureano, also known as Tata, a member of the Puerto Rico House of Representatives, was sentenced to eight years in prison. Her husband, Orlando Montes-Rivera, was sentenced to four years and nine months in prison. According to court documents and evidence presented at trial, from early 2017 until July 2020, Charbonier-Laureano, her husband, and her assistant, Frances Acevedo-Ceballos, executed a scheme to defraud the Commonwealth of Puerto Rico by engaging in a theft, bribery, and kickback scheme. Over the course of the scheme, Charbonier-Laureano inflated Acevedo-Ceballos’ salary from $800 on a bi-weekly, after-tax basis to nearly $2,900. Out of every inflated paycheck, it was agreed that Acevedo-Ceballos would keep a portion and kick back approximately $1,500 to Charbonier-Laureano and Montes-Rivera. After learning of the investigation into illegal activities in her office and of a warrant that had been obtained for one of her phones, Charbonier-Laureano proceeded to delete certain data on the phone. In particular, Charbonier-Laureano deleted nearly all call log entries, WhatsApp messages, and iMessages associated with the phone. The jury convicted Charbonier-Laureano and Montes-Rivera in January of one count of conspiracy; two counts of theft, bribery, and kickbacks concerning programs receiving federal funds; six counts of honest services wire fraud; and two counts of money laundering. The jury also convicted Charbonier-Laureano of obstruction of justice for destroying data on her cell phone. Acevedo-Ceballos, who pleaded guilty to bribery concerning programs receiving federal funds, was sentenced in February to three years and one month in prison. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico; and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement. The FBI investigated the case. Trial Attorneys Jonathan E. Jacobson and Kathryn E. Fifield of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney María L. Montañez Concepción for the District of Puerto Rico prosecuted the case.


title: Convicted Felon Sentenced For Possessing a 9mm Pistol He Attempted to Hide From Police in a Liquor Store Refrigerator

body_text: WASHINGTON – Kenneth Hart, 25, a previously convicted felon from Washington D.C., was sentenced today to 46 months in prison for possessing a loaded 9 mm Springfield Armory XDS-9 pistol that he tried to hide from police inside a liquor store refrigerator, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD). Hart pleaded guilty to unlawful possession of a firearm and ammunition by a convicted felon on January 30, 2024. In addition to the prison term, U.S. District Judge Trevor N. McFadden ordered Hart to serve three years of supervised release. According to court papers, on November 1, 2023, members of the MPD’s Violent Crime Suppression Division Robbery Suppression Unit were conducting firearm interdiction activities on the 2900 block of Martin Luther King Junior Ave., SE. About 5:30 p.m., officers observed Hart along with several other individuals leave a nearby restaurant. An investigator who wearing a tactical vest with clearly visible, “POLICE” insignia began to walk behind the Hart, who spotted the investigator, turned away, and started heading towards Malcolm X Avenue, SE. Hart entered a liquor store and stood beside a beverage refrigerator at the back. The investigator, now inside the store, noticed that both of Hart’s hands were inside the refrigerator. The investigator saw Hart place a black firearm inside the refrigerator. The investigator arrested Hart. Additional MPD investigators arrived and assisted in the arrest. In the refrigerator, police recovered a 9 mm Springfield Armory XDS-9, with one round in the chamber and six in the magazine. The pistol, which had been reported stolen out of Pittsylvania, Virginia, subsequently was swabbed and determined to have a DNA match with the defendant. Hart has a significant criminal history including two prior convictions that include attempted robbery with an unregistered firearm and unlawful possession of a firearm by a convicted felon. This case was investigated by the Metropolitan Police Department’s Violent Crime Suppression Division. It is being prosecuted by Assistant U.S. Attorney Shehzad Akhtar.


title: Starkville man sentenced to 15 years in prison  for distributing methamphetamine

body_text: Oxford, MS – A Starkville man was sentenced today to 15 years in prison for drug trafficking. According to court documents, Chad Boyd, aka Chadrick Robinson, 41, previously pled guilty to distribution of 50 grams or more of methamphetamine (actual), also known as “ice,” a Schedule II controlled substance. Boyd was sentenced Thursday by U.S. District Judge Michael P. Mills to 180 months in prison followed by 5 years of supervised release. Boyd was remanded to the custody of the U.S. Marshals following his sentencing hearing. “Individuals who chose to spend their time selling meth and other illegal drugs in the Northern District of Mississippi should know that this office and our law enforcement partners will do all we can to see that they are removed from the community and sent to prison,” remarked U.S. Attorney Clay Joyner. “We hope that today’s sentence will serve as another reminder that the sale of illegal narcotics has detrimental and life-changing consequences for those who peddle the illicit substances and those who use them.” “The sentencing of Mr. Chad Boyd, for the distribution of methamphetamine, underscores the positive impacts law enforcement has on the communities affected by the drug crisis,” said FBI SAC Robert A. Eikhoff. “Criminals like Mr. Boyd can expect the FBI and our federal, state, and local partners to remain steadfast in our resolve to remove offenders from the communities where they would otherwise bring the violence and the criminal activity inextricably linked to illegal drugs.” This case was investigated by the FBI and the Starkville Police Department. The case was prosecuted by AUSA Robert Mims.


title: Parmelee Man Sentenced for Assault and Prohibited Person in Possession of a Firearm

component: USAO - South Dakota

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Parmelee, South Dakota, man convicted of Assault of an Intimate Partner by Strangulation and Prohibited Person in Possession of a Firearm. The sentencing took place on May 15, 2024. Tanner Barron, age 32, was sentenced to two years and six months in federal prison, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund. Barron was indicted by a federal grand jury in November of 2023. He pleaded guilty on February 29, 2024. In the evening of September 30, 2022, Barron and the mother of his children had a verbal argument about their relationship. The disagreement continued into the next day and became physical when Barron threw the victim down. Barron then placed his hands on the victim’s neck and applied pressure, sufficient to leave a bruise and cause her voice to be hoarse. Officers from the Rosebud Sioux Tribe Law Enforcement Services responded to the scene, but Barron was no longer present. Officers located Barron in his vehicle at a gas station in Rosebud on October 2, 2022. A search of his person revealed a pipe used to ingest methamphetamine. A pistol was found on the front floorboard of Barron’s vehicle. As a regular user of methamphetamine, Barron was prohibited from possessing a firearm. The offenses occurred within the Rosebud Reservation. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court. Further, this case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Abby Roesler prosecuted the case. Barron was immediately remanded to the custody of the U.S. Marshals Service.


title: Watauga Man Convicted by Federal Jury of Assault by Striking, Beating or Wounding

body_text: ABERDEEN - United States Attorney Alison J. Ramsdell announced that Justin James Schneider, age 38, of Watauga, South Dakota, was found guilty of Assault by Striking, Beating or Wounding as a result of a two-day federal jury trial in Aberdeen, South Dakota. The charge carries a maximum penalty of one year in federal prison and/or a $100,000 fine, one year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered. Schneider was indicted by a federal grand jury in January of 2023. On October 26, 2022, in McIntosh, South Dakota, within the Standing Rock Indian Reservation, Schneider, a non-Indian man, was taking out the trash when he saw another man. Schneider believed the other man, a tribal member, had wronged him several months earlier. Schneider gestured for the man to join him in a neighbor’s yard. When they met, Schneider accused the man of misconduct, then punched him several times in the face. Schneider walked the man to his wife’s workplace, forced him to apologize for the alleged misdeed, and then punched him once more on the nose, breaking it. This case was investigated by the Corson County Sheriff’s Office and the FBI. Assistant U.S. Attorney Carl Thunem prosecuted the case. A presentence investigation report was ordered and a sentencing date of August 1, 2024, was set. Schneider remains in the custody of the U.S. Marshals Service pending sentencing.


title: Oglala Man Sentenced to Fifteen Years in Federal Prison

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Eighth Circuit Court of Appeals Judge Jonathan A. Kobes, sitting in district court in Rapid City, South Dakota, has sentenced an Oglala, South Dakota, man convicted of one count of Enticement of a Minor Using the Internet and two counts of Commercial Sex Trafficking. The sentencing took place on May 14, 2024. Gordon Weston, age 58, was sentenced to 15 years in federal prison, followed by five years of supervised release on each count of conviction, and ordered to pay a total of $300 in special assessments to the Federal Crime Victims Fund for the three convictions. The prison sentences and periods of supervision shall be served concurrently. Weston was indicted for the charges by a federal grand jury in September of 2021. He was found guilty following a federal jury trial in Rapid City in January of 2024. Weston was employed as the Activities Coordinator at the Emergency Youth Shelter in Pine Ridge, South Dakota, from 2009 to 2021. During his employment he met several females at the shelter, one of which was the charged victim in the case. The victim was a vulnerable child who had been removed from her household due to neglect, violence, and drug and alcohol abuse. After the victim was released from the shelter, Weston contacted her through social media and solicited her for sexual intercourse in exchange for money. Weston engaged in two acts of Commercial Sex Trafficking on two separate occasions. Through the investigation, it was revealed that Weston had victimized at least one other female. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court. This case was investigated by the FBI. Assistant U.S. Attorneys Megan Poppen and Jeff Clapper prosecuted the case. Weston was immediately remanded to the custody of the U.S. Marshals Service.


title: Two Rapid City Men, one Rapid City Woman, and one Colorado Woman Sentenced for Conspiracy

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Eighth Circuit Court of Appeals Judge Jonathan A. Kobes, sitting in district court in Rapid City, South Dakota, and U.S. District Judge Karen E. Schreier have sentenced two Rapid City, South Dakota, men, one Rapid City, South Dakota, woman, and one Denver, Colorado, woman convicted of Conspiracy to Distribute a Controlled Substance. Mark Bond, age 59, was sentenced by Eighth Circuit Judge Kobes on May 15, 2024, to 26 years and eight months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Todd Pape, age 61, was sentenced by Eighth Circuit Judge Kobes on May 15, 2024, to 25 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Teresa Goodroad, age 41, was sentenced on May 15, 2024, by Judge Schreier to 17 years and six months in federal prison, followed by five years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Kaylee Heppner, age 37, was sentenced on May 15, 2024, by Eighth Circuit Judge Kobes to five years in federal prison, followed by three years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Bond and Pape were indicted by a federal grand jury in the summer of 2022, and pleaded guilty on March 11, 2024. Goodroad and Heppner were indicted by a federal grand jury in the fall of 2023, and pleaded guilty on March 15, 2024. These convictions stemmed from activities involving the large scale distribution of methamphetamine in Rapid City, South Dakota, and on the Pine Ridge Reservation. Goodroad and her significant other, Richard Glover, who is set to be sentenced later this summer, were the source of supply for Bond and Pape in South Dakota. During the course of the conspiracy, Bond and Pape would make trips to Colorado to pick up pounds of methamphetamine from Goodroad and Glover. Other times Goodroad and Glover would deliver the drugs to Bond and Pape in South Dakota. Once the drugs were in South Dakota it would be further distributed by multiple individuals, including Heppner. Between 15 and 45 kilograms of methamphetamine was distributed during the course of this criminal enterprise. Co-defendant Marlena Pond was previously sentenced to six years in custody. Six other co-defendants are pending sentencing later this summer. This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. All four were immediately remanded to the custody of the U.S. Marshals Service following their respective sentencings.


title: New Underwood Man Sentenced to Federal Prison

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a New Underwood, South Dakota, man convicted of Receipt of Child Pornography. The sentencing took place on May 14, 2024. Matthew Bowman, 35, was sentenced to five years and ten months in federal prison, followed by five years supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Bowman will also be required to register as a sex offender under the Sex Offender Registration and Notification Act. Bowman was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in November of 2023. He pleaded guilty on January 24, 2024. The charge stems from Bowman receiving child pornography between September of 2020 and July of 2022. Investigators found images depicting child sex abuse, and some of the images depicted children appearing as young as four to six years old. Bowman’s child pornography collection was reported to law enforcement through a cybertip from Google Drive and Google Photos. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Anna Lindrooth prosecuted the case. Bowman was immediately remanded to the custody of the U.S. Marshals Service.


title: Lead Couple Sentenced to Federal Prison

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that a Lead, South Dakota husband and wife convicted of Conspiracy to Defraud the United States have been sentenced to prison. The couple must also pay $211,564.17 in restitution. On May 15, 2024, U.S. Circuit Judge Jonathan A. Kobes sentenced Tami Lee Stokes, 52, to 15 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. On May 16, 2024, U.S. District Judge Karen E. Schreier sentenced Jason Lee Stokes, 48, to 18 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. The Stokes were indicted by a federal grand jury in October of 2023 for Theft of Government Funds, Conspiracy to Defraud the United States, and False Statement. They both pleaded guilty to Conspiracy to Defraud the United States on March 8, 2024. The conviction stems from the Stokes’ scheme to fraudulently obtain benefits from the Social Security Administration (“SSA”). In December of 2012, Jason Stokes submitted an application for Social Security Title II Disability Insurance Benefits, claiming he was unable to work because of illness. He qualified for benefits. Thereafter, Jason and his wife, Tami Stokes, repeatedly reported false and fraudulent information to the SSA about the nature and extent of Jason’s alleged disability. From 2013 to 2023, Jason and Tami filed written reports and attended doctors’ appointments claiming Jason needed a wheelchair, could not physically function without constant assistance, and was unable to work. At doctors’ appointments, Jason acted as though he was suffering the symptoms falsely reported in the Stokes’ written reports. The Stokes also sought and obtained benefits on behalf of a minor dependent child. In reality, Jason was healthy and continued to work as a self-employed construction contractor, putting his LLC in his wife’s name to hide his employability. Throughout the time period of the fraud, the Stokes obtained $166,458.00 in Title II benefits for Jason’s falsified disability, and $43,042.00 in Title II benefits on behalf of their minor child, resulting in a total payout of approximately $209,500.00. During this time period, the Stokes purchased three snowmobiles, two vehicles, a trailer, and a motorcycle. They obtained numerous hunting licenses, took month-long international vacations, and enjoyed various outdoor activities including helicoptering and boating. Ultimately, their ten years of fraud was uncovered in 2022 when a doctor at a required consultative exam noted Jason’s muscle tone and other bodily functions did not match his purported levels of impairment. Investigators surveilled the Stokes engaging in their daily routine and observed them shopping, traveling to Mexico to go scuba-diving, going to restaurants, and driving. These activities completely contradicted the Stokes’ representation to the SSA that Jason couldn’t leave the home and needed assistance in essentially every aspect of his life. When sentencing Tami Stokes on May 15, 2024, to fifteen months in federal prison, U.S. Circuit Judge Jonathan A. Kobes stated that Tami took “full advantage of the fraud on the United States” and lived “the high life on the taxpayers’ dime.” At Jason Stokes’ sentencing on May 16, 2024, U.S. District Judge Karen E. Schreier told Jason, “Most of the people in South Dakota are honest, hardworking people. The scheme you were involved in here was not that at all.” Judge Schreier outlined the “outright lies” that the Stokes fed the SSA, including that Jason could not shave or brush his teeth, meanwhile the Stokes used “government money to purchase [various vehicles] and other items.” Judge Schreier sentenced Jason to eighteen months in federal prison, citing Jason’s conduct as more egregious than Tami’s because of the fact he actually pretended to be totally disabled. This case was investigated by the Office of the Inspector General – Social Security Administration. Assistant U.S. Attorney Anna Lindrooth prosecuted the case. The Stokes were remanded to the custody of the U.S. Marshals Service.


title: Mississippi Man Sentenced After Pleading Guilty to Interstate Travel for the Purpose of Engaging in Illicit Sexual Conduct with Fourteen-Year-Old Girl

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ERIC SCOTT ALFORD , age 38, a resident of Clinton, Mississippi, was sentenced today by United States District Judge Barry W. Ashe to 46 months in prison followed by 5 years of supervised release, after previously pleading guilty to interstate travel with intent to engage in illicit sexual conduct, in violation of Title 18, United States Code, Section 2423(b). Judge Ashe further required ALFORD to comply with sex offender registration requirements and to pay $5,100 in assessments. According to court documents, on about July 26, 2023, ALFORD , an adult male, contacted an undercover law enforcement officer purporting to be an adult female with a fourteen-year-old daughter (FA1) on a social network and messaging application designed for individuals interested in various “kink,” “fetish,” and alternative sexual practices. ALFORD asked what “kinks” FA1 had. On multiple occasions, over the next several days, in his correspondence with FA1, ALFORD expressed a desire and intent to engage in various forms of sexual contact with FA1 and her fourteen-year-old daughter, both individually and collectively, including by providing graphic descriptions of the sexual acts. ALFORD also frequently discussed and planned face-to-face meetings with FA1 and her daughter to engage in sexual acts with each of them, including suggesting that they travel to ALFORD’s residence. Separately, ALFORD communicated via an instant messaging application directly with who he believed to be FA1’s minor daughter. During that conversation, ALFORD again described sexual acts he intended to perform on and with FA1 and the child, individually and collectively. On August 2, 2023, ALFORD told FA1’s minor daughter that he was traveling to Hammond, Louisiana that evening to engage first in sex acts with FA1 and then to engage in sex acts with both FA1 and her daughter. That evening, ALFORD drove from Flowood, Mississippi to Hammond, Louisiana, in furtherance of his intent to engage in sexual acts with FA1 and her minor daughter. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. U.S. Attorney Evans praised the work of the United States Department of Homeland Security - Homeland Security Investigations and the Louisiana Bureau of Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, was in charge of the prosecution.


title: Convicted Ponzi schemer sentenced to over 14 years in prison for $11 million fraud and absconding before sentencing

component: USAO - Washington, Western

body_text: Seattle – A federally convicted Ponzi schemer who fled before sentencing, will do 156 months in prison for his fraud convictions, with an additional 16 months in prison for absconding before his original sentencing hearing, announced U.S. Attorney Tessa M. Gorman. Volodimyr Pigida, 49, a Miami area resident who previously resided in Bellevue, Washington, was ultimately arrested October 24, 2023, after a three-hour standoff with agents in South Florida. At his sentencing hearing today, U.S. District Judge Ricardo S. Martinez told Pigida that he had abused the court’s “trust” by fleeing from justice. The judge also described Pigida’s fraud as an “extensive, elaborate, complex scheme” that caused “immense harm” for his victims. “Accountability has been a long-time coming for Mr. Pigida,” said U.S. Attorney Gorman. “His refusal to accept responsibility for defrauding thousands of victims continues to this day and is reflected in the significant sentence imposed in this case.” In December 2022, Pigida was found guilty by a jury in the Western District of Washington of 26 felony counts , including conspiracy, wire fraud, mail fraud, and bankruptcy fraud, among other crimes. In his $11 million Ponzi scheme Pigida defrauded thousands of victims. Pigida and his wife, Marina Bondarenko, operated a ‘work-at-home’ email scheme named Trend Sound Promoter. The couple sold ad-promoting packages whereby those who bought a package were to be paid for email marketing. The couple made claims to those purchasing the packages that they could make big money for sending emails on Trend Sound’s behalf. In reality, the only significant money being generated was from those purchasing the packages, and it was used to pay earlier purchasers as in a typical Ponzi scheme. The scheme ultimately crashed – but not before the two raided the company’s accounts to purchase homes, expensive cars, and a yacht. On August 4, 2023, Pigida failed to appear at his sentencing hearing before the district court in Seattle. A warrant was issued for his arrest. Pigida is a naturalized U.S. citizen who was born in Ukraine. Initially, there were indications that Pigida might have fled to war torn Ukraine. Ultimately, law enforcement discovered him hiding in a secret room of a relative’s home in Parkland, Florida. He was pulled from hiding after a standoff with police. Assistant United States Attorney Philip Kopczynski described Pigida’s conduct in his sentencing brief, writing: “Defendant Volodimyr Pigida has shown nothing but contempt for this Court, the government, and the jury that heard the case against him. Last July, with his sentencing hearing looming on 26 felony convictions, Pigida fled. He sent a letter insisting he’s done nothing wrong, and insulting Your Honor, the prosecutors, and everyone else involved in his case. Through the diligent efforts of federal law enforcement, he was eventually found. He was arrested hiding behind a false wall in a relative’s house in Florida. Agents had to literally drag him out.” Pigida and his wife were indicted for conspiracy and mail, wire, and bankruptcy fraud in November 2018. In September 2019, Bondarenko pleaded guilty to bankruptcy fraud and was sentenced to 38 months in prison. The case was investigated by the FBI and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Philip Kopczynski.


title: St. Charles Man Admits Buying Child Pornography Online

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – A man from St. Charles, Missouri on Friday admitted buying child sexual abuse material online. Charles Lionel McGilberry, 41, pleaded guilty in U.S. District Court in St. Louis to one count of receiving child pornography and one count of possession of child pornography. He admitted making two separate purchases of child sexual abuse material on Aug. 28, 2022. Investigators later found 768 videos and 29 images containing child pornography in his Apple iCloud account and 152 videos and 2 images on his cell phone. McGilberry is scheduled to be sentenced on October 23. He faces a mandatory minimum term of five years in prison. Each crime is punishable by up to 20 years in prison. Homeland Security Investigations investigated the case. Assistant U.S. Attorney Nathan Chapman prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Charlotte Licensed Clinical Social Worker Convicted Of Medicaid Fraud, COVID-19 Relief Fraud, And Money Laundering

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – A Charlotte behavioral health services provider was convicted today by a federal jury following a nine-day trial, for defrauding the South Carolina Medicaid Program (SC Medicaid), falsely obtaining COVID-19 relief funds, and money laundering, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Stephanie G. Opet, Director of the South Carolina Medicaid Fraud Control Unit, join U.S. Attorney King in making today’s announcement. Ashley Nicole Cross, 41, of Charlotte, was found guilty of healthcare fraud, making false statements and writings relating to a healthcare matter, promotional money laundering, wire fraud, and conspiracy. According to trial evidence—including 25 witnesses and over 600 documents—Cross owned and operated Odyssey Health Group (OHG), a Charlotte-based company, which was enrolled with SC Medicaid to provide outpatient behavioral health services to eligible Medicaid beneficiaries. Under SC Medicaid rules, beneficiaries are allowed to use providers within 25-miles of the South Carolina border, including Charlotte. From 2016 to 2021, Cross’s company submitted fraudulent reimbursement claims to SC Medicaid and its contracted managed care organizations for rehabilitative behavioral health services that were never provided. To carry out the scheme, Cross used the personal identifying information (PII) of qualified SC Medicaid beneficiaries to file reimbursement claims totaling $1.3 million dollars. For some claims, Cross bought the PII of Medicaid beneficiaries she used to submit claims. To further the scheme and to give the appearance that OHG’s fraudulent claims were legitimate, Cross instructed OHG employees to create fake clinical service notes after she filed fraudulent claims in the names of Medicaid beneficiaries. Trial evidence established that in September 2019, Cross was informed of audits of OHG’s Medicaid claims. To cover up the fraud, Cross submitted fictitious patient medical records and made false statements to auditors. Trial evidence further established that Cross engaged in money laundering and used some of the fraudulent proceeds to promote the scheme by paying for Medicaid beneficiary names and PII. In addition to the Medicaid fraud scheme, evidence showed that from April 3, 2020, to May 14, 2022, Cross executed a scheme to obtain fraudulent Paycheck Protection Program (PPP) loans on behalf of OHG and Gucci International Inc. (Gucci), a purported event planning business owned by Cross’s boyfriend and co-conspirator. To obtain the PPP loans, Cross submitted loan applications and supporting documents that contained false statements regarding OHG’s and Gucci’s payroll expenses, number of employees, and other misrepresentations. Cross obtained more than $287,000 in COVID-19 relief funds for her companies and Gucci. At the time of Gucci’s loan application, Cross’s boyfriend was under indictment for a federal offense. Cross was remanded into custody after the jury returned its verdict. A federal district court judge will determine Cross’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not been set. The FBI investigated the case with substantial assistance from the South Carolina Attorney General’s Office, Medicaid Fraud Control Unit, and the Small Business Administration’s Office of Inspector General. Assistant U.S. Attorneys Michael E. Savage and Cassye Cole, and Special Assistant U.S. Attorney Kristina Fleisch of the U.S. Attorney’s Office in Charlotte prosecuted the case.


title: David DePape Sentenced To 30 Years In Prison After Conviction On Assault And Attempted Kidnapping Charges

component: USAO - California, Northern

body_text: SAN FRANCISCO –David DePape was sentenced today to 360 months in prison following his conviction on assault and attempted kidnapping charges in connection with his Oct. 28, 2022, intrusion into the home of Speaker Emerita Nancy Pelosi and her husband Paul Pelosi, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. Jacqueline Scott Corley, U.S. District Judge. U.S. Attorney Ramsey recorded a video statement commenting on today’s sentence that is available here: https://youtu.be/3o9EH157Ffk “This sentence is a warning: violence against those who serve the public and their families will not be tolerated,” said Attorney General Merrick B. Garland. “The Justice Department will aggressively prosecute those who target public servants and their families with violence. In a democracy, people vote, argue, and debate to achieve the policy outcome they desire. But the promise of democracy is that people will not employ violence to affect that outcome.” In an additional statement, U.S. Attorney Ramsey said, “David DePape, when he planned his attempted kidnapping, claimed he intended to punish the Speaker Emerita and teach Congress as a whole a lesson. He then violently assaulted Mr. Pelosi. Today’s sentence is a stern reminder to those who pursue violence against public officials and institutions that significant punishment will follow. I want to thank the FBI, the San Francisco Police Department, the U.S. Capitol Police and the members of my prosecution team—including Helen Gilbert, Laura Vartain and Maddie Wachs —for bringing this matter to a swift and decisive conclusion. We hope that the conclusion of the federal case brings a measure of healing to Mr. Pelosi and his family.” “Today’s sentencing of David DePape to a significant prison term sends a clear message that violence and intimidation have no place in our community nor our political discourse. DePape's attack, fueled by misguided ideology, underscores the dangers posed by extremist beliefs,” said FBI Special Agent in Charge Robert Tripp. “The FBI is committed to protecting all citizens and ensuring that our democracy remains strong and resilient against those who seek to harm it.” The evidence at trial established that weeks before the attack, DePape, 44, of Richmond, California, targeted Nancy Pelosi, who was then Speaker of the U.S. House of Representatives, and collected personal information about her, including her home address. DePape kept the information in a computer file he labeled “favorite politicians.” DePape intended to kidnap the then-Speaker, hold her hostage, and break her kneecaps. The evidence at trial demonstrated that on the night of the assault, DePape used public transportation to travel from the East Bay to San Francisco while carrying two backpacks that contained a hammer, sledgehammer, duct tape, rope, zip ties, and electronic items, among other items. After arriving at the Pelosi residence, DePape used the hammer to break the window of a glass door and enter the home. Then-Speaker Pelosi was not home and her husband, Paul Pelosi, was sleeping on the third floor of the home. DePape roamed the home until he found Mr. Pelosi in the third-floor bedroom. The trial evidence demonstrated that DePape woke Mr. Pelosi and, while standing three to four feet from him holding the hammer and restraints, made various threats including, “I will take you out.” Mr. Pelosi managed to walk to his bathroom and call 9-1-1, during which he carefully used language to alert the emergency operator to the situation without agitating DePape. Mr. Pelosi convinced defendant to go downstairs to the first floor and continued talking to DePape. When the police arrived, Mr. Pelosi opened the door and the police ordered DePape to drop the hammer he was holding. Instead, DePape struck Mr. Pelosi three times with full force, fracturing his skull. The responding officers immediately tackled Depape and took him into custody. On November 9, 2022, a federal grand jury indicted DePape, charging him with one count of assault upon an immediate family member of a United States official with the intent to impede, intimidate, or interfere with the official while engaged in the performance of official duties or with intent retaliate against the official on account of the performance of official duties, and one count of attempted kidnapping of a United States official on account of the performance of official duties. A jury convicted DePape of both charges. The Honorable Jacqueline Corley sentenced DePape to the statutory maximums on each count, which were 30 years in prison for the assault charge and 20 years in prison for the attempted kidnapping charge, the two sentences to run concurrently. In addition to the prison term, Judge Corley ordered the defendant to serve five years of supervised release, to begin after the prison term and ordered that DePape will receive credit for the little over 18 months that he has been in custody since his crime. In sentencing DePape, Judge Corley stated that DePape may still be dangerous, that his use of violence was “gratuitous,” and that because he entered the home of a politician, future would-be leaders now must consider whether entering public service through politics is worth the risk. “Because of your actions,” said Judge Corley, “we will never know what we lost.” The National Security and Cyber Section of the U.S. Attorney’s Office for the Northern District of California is prosecuting the case. FBI San Francisco, the U.S. Capitol Police, and the San Francisco Police Department are investigating the case.


title: Portland, Oregon man arrested after traveling to Seattle for sex with children

body_text: Seattle – A 56-year-old Portland, Oregon, man appeared in Federal Court today, following a six-week investigation by Homeland Security Investigations and the Seattle Internet Crimes Against Children Task Force, announced U.S. Attorney Tessa M. Gorman. Marc David McCool was arrested May 16, 2024, when he arrived at a Seattle area hotel, allegedly intending to sexually abuse fictitious 7 and 11-year-old children. When arrested McCool had various items reflective of his sexual interest in abusing children: condoms, baby oil, rope, and stuffed animals. According to records filed in the case, McCool responded to an ad posted on social media by an undercover law enforcement agent. Over more than six weeks of “chats” via the Kik Messenger App, McCool allegedly described his sexual interest in children, his sexual abuse of other victims, and the types of “trophies” he kept from those prior criminal sexual acts. Ultimately, McCool made arrangements to travel to Seattle allegedly believing he would sexually abuse two young children. He was arrested after he traveled by train and a rideshare to the meet location. McCool is charged with attempted enticement of a minor and travel with the intent to engage in a sexual act with a minor. Attempted enticement of a minor is punishable by no less than 10 years to lifetime imprisonment. Traveling with the intent to engage in a sexual act with a minor is punishable by up to 30 years imprisonment. The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The case is being investigated by Homeland Security Investigation as part of the Seattle Police Department Internet Crimes against Children Task Force (ICAC). The case is being prosecuted by Assistant United States Attorney Cecelia Gregson. U.S. v McCool MJ24-297


title: Previously convicted Richmond drug trafficker sentenced for third time

component: Drug Enforcement Administration (DEA)

body_text: RICHMOND, Va. – A Richmond man was sentenced yesterday to 15 years and eight months in prison for possession with intent to distribute cocaine and fentanyl and being a felon in possession of a firearm and ammunition. According to court documents, on Sept. 27, 2022, an individual acting under the direction of law enforcement made contact with Jeremy Jermaine Blue, 35. They arranged to meet for Blue to deliver a kilogram of cocaine. As Blue drove to the prearranged meeting location to deliver the cocaine, law enforcement performed a stop on the vehicle before the exchange. After a drug-detecting K-9 alerted to the scent of narcotics in the car, law enforcement located the cocaine, as well as 48 grams of fentanyl and a loaded 9mm semiautomatic handgun. Blue was convicted in 2009 of possession with intent to distribute cocaine. One month after Blue was released from supervised probation in July 2013, he possessed heroin with intent to distribute and was convicted in 2014. As a previously convicted felon, Blue cannot legally possess a firearm or ammunition. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Angela Mastandrea and Special Assistant U.S. Attorney Ellen Hubbard, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-40.


title: Brentwood Resident Charged With Receipt Of Child Pornography And Possession Of Unregistered Short-Barreled Rifle

body_text: OAKLAND – A federal grand jury has indicted Michael Patterson for receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b), and possession of an unregistered short-barreled rifle, in violation of 26 U.S.C. § 5861(d), announced United States Attorney Ismail J. Ramsey, United States Secret Service (USSS) Special Agent in Charge Shawn M. Bradstreet, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jennifer Cicolani. The indictment, filed April 18, 2024, was unsealed on May 6, 2024, at Patterson’s initial federal court appearance before U.S. Magistrate Judge Donna M. Ryu. On May 16, 2024, Magistrate Judge Ryu ordered Patterson detained pending trial. According to the government’s detention memorandum, in late May 2023, the Silicon Valley Internet Crimes Against Children Task Force (SV-ICAC) conducted an operation to identify and arrest adults engaging in sexual conversations with undercover chatters posing online as minors. During this operation, Patterson engaged in an online conversation with an undercover officer posing as a 13-year-old girl, and eventually planned to meet and engage in sexual conduct. Officers arrested Patterson when he arrived at the agreed upon location. In Patterson’s car, officers located the phone Patterson had used to communicate with the undercover officer, and next to the phone, officers located a loaded .38 caliber revolver. The government further argued that after his arrest, Patterson was found to have been in possession of over 600 videos and over 1,200 individual images depicting child sexual abuse material on various electronic devices, as well as dozens of firearms, firearm components, boxes of ammunition, and firearm manufacturing machines and components, including a computerized gun milling machine. Three of the firearms were unregistered short-barreled rifles and one was an unregistered fully automatic machine gun. Patterson is scheduled to appear before the Honorable U.S. District Judge Haywood S. Gilliam, Jr. on June 26, 2024, in Oakland. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of twenty years in prison and a fine of $250,000, plus restitution if appropriate, for a violation of 18 U.S.C. § 2252(a)(2) and (b), and 10 years imprisonment and a fine of $10,000 for a violation of 26 U.S.C. § 5861(d). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Assistant U.S. Attorney Jonah Ross is prosecuting the case with the assistance of Kay Konopaske and Claudia Hyslop. The prosecution is the result of an investigation by the USSS, ATF, SV-ICAC, the Brentwood and Walnut Creek Police Departments, and the Contra Costa Sheriff’s Office.


title: Three Juveniles Charged as Adults with Armed Carjacking, Armed Robbery, and Related Charges

body_text: WASHINGTON – Keiphone Bennett, 17, Kevin Edwards, 16, and Asia Clark, 17, of Washington, D.C., were presented in Superior Court on May 16, 2024, and charged as adults for their participation in a series of armed carjackings and robberies, which took place between April 29 and May 6, 2024, U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD) announced. According to the government’s evidence, over the course of seven days, Bennett, Edwards, and Clark, together or separately, committed a series of four armed carjackings and robberies in the District of Columbia. The defendants were arrested on May 7, 2024, after police saw a car used in one of the offenses and attempted to stop it. Rather than stop, the defendants attempted to evade police for approximately thirty minutes. Police pursued the car through the District, Virginia, and Maryland, before police ultimately succeeded in stopping it in the area of Chesapeake Street and Overlook Avenue Southeast. Bennett, Edwards, and Clark were charged and presented in D.C. Superior Court. Bennett was charged by complaint with four counts of armed carjacking, one count of armed robbery, and five counts of possession of a firearm during a crime of violence. Edwards was charged by complaint with two counts of armed carjacking, one count of armed robbery, and three counts of possession of a firearm during a crime of violence. Clark was charged by complaint with one count of armed carjacking, one count of armed robbery, and two counts of possession of a firearm during a crime of violence. The Court ordered the defendants held without bond pending a preliminary hearing scheduled for June 7, 2024. This case is being investigated by the Metropolitan Police Department (MPD). It is being prosecuted by Assistant U.S. Attorneys Anthony Cocuzza and John Parron. An arrest on a complaint is merely a formally charged allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.


title: Rochester man pleads guilty to civil disorder and assaulting federal officers

component: USAO - New York, Western

body_text: ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that JohnMichael Santiago, 24, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci to civil disorder and assaulting a federal officer. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000. Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that on September 4, 2020, following the release of information by the Rochester Police Department (RPD) regarding the death of Daniel Prude, a group of protesters damaged property and turned over tables at two restaurants in Rochester, causing numerous patrons to leave. During the evening of September 5, 2020, Santiago was part of a group of approximately 1,500 protesters that gathered at Broad Street and Exchange Boulevard, about a block north of RPD headquarters, where they blocked all lanes of traffic on nearby streets. Over the next few hours, some protesters hurled rocks, bottles, lit fireworks, and other objects at police officers in the area. Some also shined flashlights and pointed lasers at officers. Protesters were repeatedly asked to move onto the sidewalks and leave the area or be subject to arrest. Many disregarded the requests, remained in the streets, and continued to block traffic. Santiago threw an ignited firework in the direction of a line of uniformed RPD officers, which detonated in the immediate vicinity of the officers. Santiago was not arrested that night, but was later interviewed by law enforcement about the incident. Santiago admitted that he attended the protests, brought fireworks to the protests, and threw an ignited mortar-style firework at police officers. While in custody at the Livingston County Jail, after being charged with civil disorder, Santiago assaulted two corrections officers, throwing a hard plastic cup at one, and striking the other in the face with his fist. Officers began to wrestle Santiago to secure him, during which one officer suffered contusions and a concussion, and a second suffered a back injury. The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the United States Marshall’s Service, under the direction of Marshal Charles Salina. Sentencing is scheduled for September 3, 2024, at 3:30 p.m. before Judge Geraci. # # # #


title: East Aurora man arrested, charged with attempted enticement of a minor

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Brian O’Brien, 41, of East Aurora, NY, was arrested in San Diego, CA, and charged by criminal complaint with attempted enticement of a minor and possession of child pornography. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life. Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the complaint, the FBI began investigating O’Brien in June 2023 after he was connected to the uploading of child pornography on Snapchat. A search warrant was executed at his residence in July 2023, during which investigators seized numerous electronic items. A cursory search of an external hard drive confirmed the presence of child pornography on the hard drive, with some images/videos appearing to have been saved roughly 10 years prior. A search of O’Brien’s phone recovered conversations between the defendant and other men, during which they discussed exchanging child pornography and the sexual abuse of children. In addition, during another conversation, O’Brien reaches out to an individual identified as “JJ,” asking to be connected to minor boys. The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Former Accounting Manager of Pasadena Storage Business Sentenced to Prison for Insider Trading

component: USAO - California, Central

body_text: LOS ANGELES – A former employee at a publicly traded Pasadena-based company was sentenced today to nine months in federal prison for buying more than 66,000 company shares based on non-public information that the company was about to be acquired at a higher per-share price, and then selling the shares after news of the acquisition became public, resulting in nearly $500,000 in ill-gotten gains, the Justice Department announced today. Marco Antonio Perez, 60, a.k.a. “Marc Perez,” of Glendora, was sentenced by United States District Judge Fernando L. Aenlle-Rocha, who also ordered Perez to serve six months’ home detention following his release from prison. In reaching the sentence he imposed, Judge Aenlle-Rocha highlighted Perez’s role as an accounting manager for the company and his exploitation of that position of trust for personal gain. As accounting manager at General Finance Corp., a Pasadena-based storage and modular space company, Perez reported to the company’s chief financial officer. He also performed assignments for the company’s chairman, including printing out the chairman’s emails. As a result, Perez had access to material information belonging to General Finance, including offers to buy the company, before the information was released to the investing public. According to court documents, Perez knowingly violated insider trading law and company policy, and abused his position as a trusted corporate insider. After learning that his employer’s company was about to be acquired by a larger company at a premium, and before such information was made known to the trading public, Perez purchased stock for his own personal gain and also tipped off others close to him so they could similarly profit. In violation of his fiduciary duties to General Finance and its shareholders, and in violation of the company’s policy against insider trading, in March and April of 2021, Perez purchased a total of 66,585 shares of General Finance stock which he was later able to sell for a total of $1,262,815. Perez purchased the General Finance stock after reading confidential emails sent to the company’s chairman in February and March 2021, that concerned the pending sale of General Finance for a price in the range of $19-$20 per share. Perez paid prices between $10 and $12 for the 66,585 shares he bought. General Finance was ultimately sold to United Rentals Inc., a Stamford, Connecticut-based company that was the largest equipment rental business in the world. On April 15, 2021, United Rentals issued a press release announcing that it was acquiring General Finance for $19 per share. Prior to this announcement, General Finance’s share price closed that day at $12.17. The day after United Rentals’ announcement, the price of General Finance shares surged from $12.17 – the closing price before the announcement -- to $19 per share. Within two weeks after the announcement, Perez sold all 66,585 shares he had purchased on inside information, netting a profit of approximately $488,533. Perez also admitted to tipping off two other people about the impending sale of General Finance, which also violated General Finance’s policy against insider trading. Both individuals acted on Perez’s inside information and made profits of $127,140 and $34,867, respectively. The United States Securities and Exchange Commission has a pending civil case against Perez stemming from his illegal activity in this case in which judgment was entered against Perez on October 11, 2023, requiring him to disgorge ill-gotten gains, pay prejudgment interest, and pay a civil penalty, to be determined by the judge in that civil case. SEC v. Marco A. Perez, CV 23-8079-JLS. The FBI investigated this matter. Assistant United States Attorneys Ranee A. Katzenstein of the Criminal Appeals Section and Steven M. Arkow of the Major Frauds Section prosecuted this case.


title: Guatemalan citizens extradited to the United States to face drug trafficking charges in the Eastern District of Texas

component: Criminal - Office of International Affairs

body_text: SHERMAN – Four Guatemalan citizens have been extradited to the United States to face international drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Jorge Luis Rodriguez, 63; Pedro Pablo Yaser Barrios-Cruz, 49; Melvin Hilario Estrada-Flores, 35; and Magner Lopez-Mejia, 45, were extradited from Guatemala to the United States on May 16, 2024. According to the information presented in court, the defendants are alleged to have been involved in a Guatemalan-based drug trafficking organization that uses U.S. planes to transport cocaine from Venezuela to Guatemala and then to Mexico for ultimate distribution in the United States. The defendants’ network distributed multi-ton quantities of cocaine monthly. On Nov. 9, 2020, the defendants crashed a plane with more than 1000 kilograms of cocaine in Guatemala resulting in a shoot-out with Guatemalan police after the crash. On June 10, 2021, a grand jury in the U.S. District Court for the Eastern District of Texas charged the defendants with multiple crimes, including conspiracy to manufacture and distribute cocaine, intending, knowing, and having reasonable cause to believe it would be unlawfully imported to the United States and conspiracy to distribute and possess with intent to distribute by person on board an aircraft. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. This case is being investigated by Homeland Security Investigations’ Dallas, HSI Laredo, and HSI Guatemala Field Offices; Department of Commerce Bureau of Industry and Security; Federal Aviation Administration; and the U.S. Customs and Border Protection’s Air and Marine Operations. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s arrest and extradition to the United States. These individuals are being prosecuted by Assistant U.S. Attorney Christopher Rapp. ###


title: Defendant Charged with Distributing Fentanyl and Methamphetamine that Resulted in Overdose Death of San Diego Resident

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – May 17, 2024 SAN DIEGO – James Jason Hendershaw of San Diego was charged in an indictment unsealed this week with distributing the fentanyl and methamphetamine that resulted in the death of a 20-year-old San Diego resident. The Oceanside Police Department and Oceanside Fire Department responded to a 911 call a few minutes after 6 a.m. on January 10, 2019. When they arrived, they found the victim, identified in court records as R.J., unresponsive and lying on a sidewalk at the corner of Farel Street and Via Sonora in Oceanside. He was pronounced dead a few hours later. Hendershaw allegedly distributed the fatal mix of fentanyl and methamphetamine the night before. “Prosecuting drug dealers who supply deadly fentanyl and methamphetamine is not just about accountability; it’s about preventing death by interrupting the supply chain,” said U.S. Attorney Tara McGrath. “By identifying and charging the distributors, we send a clear message to the dealers of these toxins: You will be held accountable for the lives your product destroys.” This case is being prosecuted by Assistant U.S. Attorneys Ryan Sausedo and Adam Gordon. DEFENDANT Case Number 23-CR-2645-RBM James Jason Hendershaw Age: 36 Vista, CA SUMMARY OF CHARGES Distribution of Fentanyl and Methamphetamine Resulting in Death – Title 18, United States Code, Sections 841(a)(1), (b)(1)(C) Maximum penalty: Life in prison Mandatory minimum: Twenty years in prison INVESTIGATING AGENCIES Oceanside Police Department State of California Department of Health Care Services *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.


title: Drug Trafficker Who Used College-Age Drivers to Import Methamphetamine Sentenced to 12 Years

body_text: NEWS RELEASE SUMMARY – May 17, 2024 SAN DIEGO – Fernando Castro Bazan, a Los Angeles-based drug trafficker, was sentenced in federal court today to 12 years in prison for his leadership role in a drug trafficking organization that employed drivers as young as 18 years old to import large quantities of methamphetamine into the United States from Mexico in the gas tanks of rental cars. Castro Bazan, also known as “Benji” or “Benji Banks,” started using drivers to transport drugs for a Tijuana-based drug trafficking organization in the spring of 2021. Using his status as a club promoter and amateur musician, Castro Bazan hired numerous college-aged drivers, luring them with the prospect of easy money and “all-expenses-paid trips to Mexico.” A number of the young drivers Castro Bazan employed were arrested at the border and convicted of drug trafficking or related offenses. They now have federal felony convictions on their records. At today’s hearing, U.S. District Judge Jinsook Ohta noted that Castro Bazan had a “catastrophic and terrible impact on the lives of young people—teenagers—who had the misfortune to come across his path.” “Not only did this defendant import staggering amounts of a deadly drug into our community, he took advantage of vulnerable young people who failed to appreciate the tremendous risk involved,” said U.S. Attorney Tara McGrath. “He turned college-age kids into traffickers and will serve a significant sentence for it.” Castro Bazan is also facing drug charges in the Eastern District of California for his role in a distribution conspiracy that used couriers to deliver narcotics direct to buyers in Northern California. This case is being prosecuted by Assistant U.S. Attorneys Robert J. Miller and Shivanjali A. Sewak. DEFENDANT Case Number 22cr971-001-JO Fernando Castro Bazan Age: 32 Los Angeles, CA SUMMARY OF CHARGES Conspiracy to Import Methamphetamine – Title 21, U.S.C., Sections 952, 960 and 963 Maximum penalty: Life in prison and $10 million fine Minimum penalty: Ten years in prison Importation of Methamphetamine – Title 21, U.S.C., Sections 952 and 960 Maximum penalty: Life in prison and $10 million fine Minimum penalty: Ten years in prison INVESTIGATING AGENCY Homeland Security Investigations