title: Two Correctional Officers Indicted for Civil Rights Violation and Conspiracy to Obstruct Justice in Connection with Assault o Pretrial Detainee

body_text: NEWARK, N.J. – Two Passaic County correctional officers were indicted today by a federal grand jury for their role in violating a pretrial detainee’s civil rights and conspiracy to obstruct justice, U.S. Attorney Philip R. Sellinger announced. Sergeants Jose Gonzalez, 45, and Donald Vinales, 38, are each charged in a two-count indictment with one count of deprivation of rights under color of law and one count of conspiracy to obstruct justice. Gonzalez and Vinales were previously charged by complaint. They will be arraigned on a date to be determined. According to the indictment: On Jan. 22, 2021, a pretrial detainee at the Passaic County Jail (PCJ) squirted a mixture containing urine onto a correctional officer. The following day, Gonzalez, Vinales and other correctional officers transported the detainee through an area of the PCJ that does not have a video surveillance camera, which correctional officers and inmates at the PCJ have referred to as a “blind spot.” While in that blind spot, Gonzalez and Vinales assaulted the detainee, while he was handcuffed, when they knocked him to the ground and struck him multiple times. One day after the assault, the detainee was taken to a local hospital, which documented injuries from the assault. The defendants were required to submit documentation regarding their use of force. None of them submitted any such reports. In April 2022, after receiving federal grand jury subpoenas in connection with this investigation, Gonzalez, Vinales, and Correctional Officer Lorenzo Bowden, among others, met to discuss the federal investigation. The group agreed not to cooperate with the federal investigation and also agreed to say that nothing had happened to the detainee (referring to the assault). During an interview with federal investigators in October 2022, Bowden falsely stated that the detainee had not been assaulted and that there had not been any meeting or communication among those who participated in or witnessed the assault. Bowden pleaded guilty on April 18, 2024, before U.S. District Judge Michael E. Farbiarz to an information charging him with conspiracy to obstruct justice and is awaiting sentencing. The charge of deprivation of rights under color of law carries a maximum penalty of 10 years in prison and the charge of conspiracy to obstruct justice carries a maximum penalty of 20 years in prison. Both charges carry a fine of up to $250,000. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Passaic County Sheriff’s Office Division of Internal Affairs, under the direction of Acting Director Gary F. Giardina, with the investigation leading to the charges. The government is represented by Assistant U.S. Attorneys Benjamin Levin, Co-Chief of the General Crimes Unit, and R. Joseph Gribko, Deputy Chief of the U.S. Attorney’s Office’s Civil Rights Division. The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. gonzalezvinales.indictment.pdf


title: United States Attorney for the Middle District of Alabama Announces Resignation

component: USAO - Alabama, Middle

body_text: MONTGOMERY, ALABAMA – United States Attorney Jonathan S. Ross has announced his resignation effective August 24, 2024. Next month, he plans to enter private practice in the Birmingham, Alabama area. Mr. Ross, a graduate of the University of South Carolina and the Duke University School of Law, joined the U.S. Attorney’s Office for the Middle District of Alabama in 2014 as an Assistant United States Attorney (AUSA). During the years that followed, Mr. Ross served as First Assistant U.S. Attorney and Acting U.S. Attorney. The United States District Court appointed him to the position of United States Attorney in April of this year. During his tenure as an AUSA, Mr. Ross prosecuted a variety of cases, focusing primarily on white collar offenses and illegal opioid distribution cases. From 2019 through 2022, he was as the office’s Senior Litigation Counsel, responsible for facilitating training for both new and experienced attorneys. As United States Attorney, Mr. Ross prioritized the prosecution of violent offenders, including those who possessed machine gun conversion devices, and narcotics dealers. “It has been an honor to serve the people of the Middle District of Alabama over the past ten years,” said Ross. “I am thankful to all the federal, state, and local law enforcement partners for their support during my time with the Justice Department. These agencies, in addition to the professional and talented staff at the U.S. Attorney’s Office, are responsible for any achievements I had as a federal prosecutor and United States Attorney.” As of August 25, 2024, First Assistant Kevin P. Davidson will serve as Acting United States Attorney for the Middle District. A native of Birmingham, Mr. Davidson has served with the U.S. Attorney’s Office since 2012, prosecuting a variety of crimes with a focus on violent and drug crimes. Prior to joining the U.S. Attorney’s Office, Acting U.S. Attorney Davidson served as a Deputy District Attorney in Montgomery County for eight years. Mr. Davidson is a graduate of Auburn University Montgomery. He received his law degree from the University of Alabama School of Law The Middle District of Alabama covers 23 counties, and includes the cities of Alexander City, Andalusia, Auburn, Clanton, Dothan, Enterprise, Eufaula, Greenville, Montgomery, Opelika, Ozark, Phenix City, Prattville, Troy, and Wetumpka. The United States Attorney’s Office is responsible for conducting all criminal and civil litigation in the district involving the United States government.


title: Army Soldier Arrested for Using AI to Generate Child Pornography

component: Criminal Division

body_text: An Army soldier stationed at Joint Base Elmendorf-Richardson in Anchorage, Alaska, was arrested last week on criminal charges related to his alleged transportation, receipt and possession of files depicting child sexual abuse, and use of AI to generate sexually explicit images of children. “The misuse of cutting-edge generative AI is accelerating the proliferation of dangerous content, including child sexual abuse material — so the Department of Justice is accelerating its enforcement efforts,” said Deputy Attorney General Lisa Monaco. “As alleged, the defendant used AI tools to morph images of real kids into horrific child sexual abuse material. Criminals considering the use of AI to perpetuate their crimes should stop and think twice — because the Department of Justice is prosecuting AI-enabled criminal conduct to the fullest extent of the law and will seek increased sentences wherever warranted.” “As alleged, Seth Herrera possessed thousands of images depicting the violent sexual abuse of children, including infants. He also allegedly used AI to create images depicting the sexual exploitation of children he knew,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s announcement should serve as yet another warning that the Criminal Division will aggressively pursue those who possess or produce child sexual abuse material, including where the images were generated through AI.” According to court documents, Seth Herrera, 34, allegedly transported, received and possessed files depicting child sexual abuse. Herrera also allegedly used online AI chatbots to generate realistic child sexual abuse materials (CSAM) depicting minors known to him. “Technology may change, but our commitment to protecting children will not,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will aggressively pursue those who produce and traffic in child sexual abuse material (CSAM), no matter how that material was created. Put simply, CSAM generated by AI is still CSAM, and those who sexually exploit children, through whatever technological means, will be held accountable by our office in conjunction with our law enforcement partners, for justice and the safety of our children.” “This investigation and indictment are a testament to the dedication of the men and women of Homeland Security Investigations to find and bring to justice those who exploit our nation’s children,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Absolutely no child should suffer these travesties, and no person should feel immune from detection and prosecution for these crimes by HSI and its partners in law enforcement.” “The charges against Herrera, a U.S. military soldier, for trafficking and generating child sexual abuse materials using artificial intelligence represent a profound violation of trust as well as preview of the challenges law enforcement continues to face in this evolving threat to our children” said Special Agent in Charge Robert Hammer of HSI Pacific Northwest Division. “This appalling misconduct undermines Herrera’s commitment to defending both our nation and its most vulnerable members.” Herrera is charged with one count of transportation of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. He will make his initial court appearance on Aug. 27 before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. HSI and Army Criminal Investigation Division are investigating the case. Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Mac Caille Petursson for the District of Alaska are prosecuting the case. If anyone has information concerning Herrera’s alleged actions or may have encountered someone in person or online using the name Seth Herrera, please contact the HSI tip line at 1-877-447-4847. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Texarkana Physician Sentenced to More Than 7 Years in Federal Prison for Prescribing Controlled Substances Without a Legitimate Medical Purpose

component: USAO - Arkansas, Eastern

body_text: TEXARKANA, AR – A Texarkana Physician was sentenced today to 87 months in prison followed by three years of supervised on two counts of Distribution of a Schedule II Controlled Substance Without an Effective Prescription and 12 months in prison followed by one year of supervised release on two counts of Distribution of a Schedule V Controlled Substance Without an Effective Prescription, all to run concurrently. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana. According to court documents and evidence presented at trial, the Drug Enforcement Administration (DEA), Little Rock District Office (LRDO), Tactical Diversion and Diversion Groups initiated an investigation into Dr. Lonnie Parker , age 59, of Texarkana, Arkansas in 2018 after receiving complaints from local law enforcement about a suspected pill mill and possible overdose death of a patient. Investigators analyzed prescription drug monitoring data attributed to Dr. Parker, and the investigation revealed Dr. Parker prescribing controlled substances, to include opiates, benzodiazepines, and promethazine with codeine cough syrup with unusual frequency and in unusually large quantities in the Texarkana area. In the two-year period analyzed, Dr. Parker prescribed approximately 1.2 million dosage units of opiates, including oxycodone and hydrocodone, to approximately 1,508 patients (approximately 847 dosage units per patient). Dr. Parker also prescribed approximately 16 gallons of Promethazine with Codeine cough syrup to approximately 29 patients during the same time period. These prescriptions included several for combinations of narcotics and sedatives to high diversion-risk patients. U.S. Attorney David Clay Fowlkes made the announcement. The Drug Enforcement Administration (DEA), Little Rock District Office (LRDO), Tactical Diversion and Diversion Group, the Federal Bureau of Investigation (FBI), the Texarkana Police Department, and the United States Department of Health and Human Services Office of Inspector General (HHS) investigated the case. Special Assistant United States Attorney Anne Gardner and Assistant United Sates Attorney Graham Jones prosecuted the case for the United States. 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 . Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov .


title: Johnstown Man Pleads Guilty to Heroin and Cocaine Trafficking

body_text: JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today. Rodney Smith, 68, pleaded guilty to Count One of the Superseding Indictment before Senior United States District Judge Kim R. Gibson. In connection with the guilty plea, the Court was advised that, from in and around January 2021 to in and around June 2021, in the Western District of Pennsylvania, Smith conspired with others to distribute and possess with intent to distribute quantities of heroin, cocaine, and cocaine base in the form commonly known as crack. Smith was intercepted on a federal wiretap obtaining quantities of the drugs that he distributed to others. Judge Gibson scheduled sentencing for January 13, 2025. The law provides for a total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government. The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Smith. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, 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: Former Town of Cortlandt Employee And Business Owner Plead Guilty To $2.4 Million Environmental Crime Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty pleas of GLENN GRIFFIN, the owner, president, and principal of Griffin’s Landscaping Corporation, and ROBERT DYCKMAN, the former Assistant General Foreman for the Town of Cortlandt, in a scheme in which DYCKMAN gave GRIFFIN unauthorized access to the Town of Cortlandt’s Arlo Lane facility to dump loads of unauthorized materials. After dumping these loads, GRIFFIN received payments from the Town for hauling away the very materials that GRIFFIN had illegally dumped. GRIFFIN also pled guilty to a separate bid-rigging scheme. GRIFFIN and DYCKMAN pled guilty today before U.S. Magistrate Judge Victoria Reznik. U.S. Attorney Damian Williams said: “Robert Dyckman, a former Town of Cortlandt employee, used his important public position to enrich himself and damage public land and fragile wetlands by allowing Glenn Griffin, a business owner and president, to illegally dump harmful, unauthorized materials on public property. Brazenly, Griffin then billed and received payments from the Town for removing and hauling away the very materials that he had illegally dumped. Today, thanks to our law enforcement partners and the dedicated prosecutors of this Office, Griffin and Dyckman have admitted to their crimes and must pay $2.4 million in restitution to their victims. Today’s pleas are a reminder that this Office will bring to justice any public official or business leader who defrauds the public and causes damage to our environment.” According to allegations in the Indictment and Superseding Informations and statements made in public filings and court proceedings: Illegal Dumping Scheme From 2018 until February 2020, GRIFFIN and DYCKMAN engaged in an unauthorized dumping scheme. DYCKMAN gave GRIFFIN and his employees unauthorized access to Arlo Lane, a Cortlandt facility, to dump hundreds of large truckloads of unauthorized materials such as thick concrete, cement with rebar, tiles, bricks, large rocks, and soil. After the illegal dumping, GRIFFIN billed and received payments from the Town of Cortlandt for removing and hauling away the very materials that GRIFFIN had illegally dumped at Arlo Lane with DYCKMAN’s assistance. DYCKMAN generally allowed GRIFFIN and his employees access to Arlo Lane on Saturdays or after working hours. To carry out the scheme, DYCKMAN would attempt to clear senior Town of Cortlandt management away from Arlo Lane around the time of the unauthorized dumping. When DYCKMAN arranged for a subordinate Town of Cortlandt worker to work overtime when GRIFFIN was dumping unauthorized loads, DYCKMAN would falsely record the worker’s overtime as having occurred during the week in order to conceal the scheme. In exchange for access to Arlo Lane, GRIFFIN paid DYCKMAN cash bribes. GRIFFIN and DYCKMAN have agreed to pay the Town of Cortlandt and the Westchester Land Trust, a 501(c)(3) tax-exempt organization which owns damaged wetlands abutting the Town of Cortlandt’s Arlo Lane property, a total of $2.4 million to remediate and restore their property following GRIFFIN and DYCKMAN’s criminal conduct. Bid-Rigging Scheme Between 2015 and 2018, GRIFFIN also engaged in a bid-rigging scheme. GRIFFIN defrauded the village of Croton-on-Hudson for work on its schools, and the hamlet of Verplanck for work at its fire department. GRIFFIN made sham, non-competitive, and inflated bids on behalf of entities that GRIFFIN did not work for or have authorization to submit bids on behalf of, so that GRIFFIN would be the low bidder in a pool of purportedly competitive bids and receive public money for work on the projects. Based on these sham, non-competitive, and inflated bids, GRIFFIN was awarded contracts with a combined value exceeding $133,000. * * * GRIFFIN, 55, of Cortlandt Manor, New York pled guilty to one count of conspiracy to commit bribery and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 5 years in prison. DYCKMAN, 52, of Verplanck, New York, pled guilty to one count of conspiracy to commit mail fraud, which carries a maximum sentence of 5 years in prison. GRIFFIN and DYCKMAN are both scheduled to be sentenced by U.S. District Judge Vincent L. Briccetti on December 5, 2024. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Westchester County Police Department in this investigation. Mr. Williams also thanked the Westchester County District Attorney’s Office and the New York City Department of Investigation for their assistance in the investigation. This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys David R. Felton and James McMahon are in charge of the prosecution.


title: Maine Man Pleads Guilty to Harassing and Threatening Woman and Her Family Members

component: Federal Bureau of Investigation (FBI)

body_text: BANGOR, Maine: A Maine man pleaded guilty today in U.S. District Court in Bangor to one count of making repeated phone calls with the intent to harass and one count of transmitting a threatening interstate communication. According to court records, from mid-July to early August 2023, Angelo Castigliola , 44, formerly of Biddeford, repeatedly called and texted the victim, including calling her 57 times and leaving her nine voicemails. He also sent the victim 40 text messages on one day alone. These repeated communications were harassing in nature. In the communications, Castigliola repeatedly threatened to harm an individual with whom he believed the victim had a relationship, and repeatedly referenced the victim’s minor child. On July 28, 2023, Castigliola also made several telephone calls to the victim’s mother, often disguising his phone number, leaving two voicemails. In one voicemail, Castigliola threatened to kill three of her family members including the victim, and to rape two minor children. The U.S. Attorney’s Office is limiting identifying information to protect the victims’ privacy. Castigliola faces up to two years imprisonment and a maximum fine of $250,000 for making repeated harassing phone calls and up to five years and a maximum fine of $250,000 for transmitting a threatening interstate communication. Any sentence would be followed by up to three years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI investigated the case. ###


title: Justice Department Sues Pennsylvania Man for Physically Obstructing Access to Reproductive Health Services in Violation of Freedom of Access to Clinic Entrances (FACE) Act

component: Civil Rights Division

body_text: The Justice Department filed a civil lawsuit today in the Eastern District of Pennsylvania against a man for violating the Freedom of Access to Clinic Entrances (FACE) Act. The FACE Act is a federal statute that prohibits use of force, threats of force or physical obstruction against anyone for seeking or providing reproductive health services. The lawsuit alleges that, on Aug. 27, 2021, Matthew Connolly violated the FACE Act by intentionally creating a physical obstruction at a reproductive health clinic in Philadelphia. In particular, the complaint alleges that the defendant, after entering the clinic, barricaded himself inside one of the clinic’s bathrooms and that his actions forced the clinic to shut down for the day, requiring the intervention of the local police. As a result, at least 44 appointments had to be re-scheduled. The complaint seeks monetary penalties and injunctive relief as provided by the FACE Act. “The defendant engaged in conduct calculated to shut down a reproductive health clinic for an entire day, forcing the evacuation of the clinic’s patients and obstructing access to reproductive health services. The FACE Act prohibits conduct intended to interfere with access to reproductive healthcare,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the FACE Act to ensure that providers can continue to deliver legal reproductive health services and that patients can obtain them.” For additional information about the Civil Rights Division and Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. Those interested in learning more about the FACE act can visit www.justice.gov/crt/freedom-access-clinic-entrances-places-religious-worship . Past FACE Act cases handled by the Special Litigation Section can be found at www.justice.gov/crt/special-litigation-section-cases-and-matters#face .


title: Wilmington Crips Gang Member Who Fired a Sawed-Off Rifle Near a School Sentenced to 15 Years in Prison

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

body_text: RALEIGH, N.C. – A Wilmington man was sentenced to 180 months in prison for possession of a firearm by a convicted felon after he fired a sawed-off rifle at another person near a school then led officers on a high-speed chase. On May 22, 2024, Jahmez Tavaughn Jackson pled guilty to the charge. “This Crip gang member was a one-man crime spree, firing shorts towards a Wilmington charter school and leading police on a high-speed chase topping 118 mile per hour,” said U.S. Attorney Michael Easley. “The new Bipartisan Safer Communities Act is built for cases just like this and got this felon 15 years in federal prison. We’re using the new law to prosecute violent gangs and shooters across North Carolina, especially those endangering our kids. Our law enforcement efforts help ensure kids can start the school year ready to hit the books, not dodge bullets.” According to court documents and other information presented in court, Jackson, 24, fired a 9mm sawed-off rifle multiple times at another individual. The shooting occurred during the day on February 22, 2023, at the intersection of 6 th Street and Campbell Street in Wilmington, just over 200 feet away from the Roger Bacon Douglas Academy, a K-5 charter school, where children were present. No one was injured during the shooting, though a vehicle parked at the school was struck by one of the bullets. Four additional shell casings were found on scene. Officers located Jackson driving a vehicle in Pender County shortly thereafter and attempted a traffic stop. Jackson fled from law enforcement officers at high rates of speed—as fast as 118 mph—and tossed the gun out of the car window. Eventually, Jackson lost control and crashed the vehicle into a median. A search of the vehicle yielded marijuana and oxycodone along with drug paraphernalia. Jackson’s phone contained evidence of his involvement in the drug trade along with photos in which he posed with firearms, including the sawed-off rifle used in the shooting. Jackson has been convicted of several felony offenses in the past, including assault with a deadly weapon inflicting serious injury, felon in possession of a firearm, attempted first degree burglary and attempted second degree kidnapping. He was on state probation and wearing an ankle monitor at the time of the federal offense. “I am glad to see that the man responsible for these dangerous crimes will be heading to prison for a very long time. There is no place for gun violence in the City of Wilmington. The WPD is doing our part to combat that day-in and day-out. We are thankful that no one was struck by the gunfire that was fired so close to one of our local schools. As a felon, the man convicted in this case should have never had a firearm in his possession. Through his involvement with narcotics and violent gun crimes, he has clearly shown that he is not ready to be out on the streets. I want to thank our women and men for their hard work on this case. Our officers and detectives work long hours to help provide our community with a safe place to live and work. We also appreciate our partner law enforcement agencies and U.S. Attorney Michael Easley who helped us ensure a strong conviction,” said Chief Donny Williams. Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wilmington Police Department investigated the case with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Hanover County Sheriff’s Office, and the Pender County Sheriff’s Office. Special Assistant U.S. Attorney William Van Trigt and Assistant United States Attorney Sarah E. Nokes prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:23-CR-112-D-RN.


title: Jamaican National Extradited for Scheme to Defraud American Citizen

component: Civil Division

body_text: A Jamaican national was extradited to the United States and made his initial appearance today in Sioux Falls, South Dakota, following his role in a long-running scheme to defraud a California woman. Dwayne Anderson, 35, of Hannover, Jamaica, will face federal wire fraud charges. He was arrested, pursuant to the U.S. request for extradition, on July 11, by Jamaican authorities. He has remained in custody in Jamaica since that time. According to the indictment, from as early as 2010 until September 2017, Anderson participated in a scheme to defraud an American woman. Using phony names, he contacted the victim by telephone, text message, and email and falsely informed her that she had won millions of dollars in a sweepstakes. Anderson persuaded the victim, who believed the defendant’s false representations, to send money to pay various fees and taxes associated with the sweepstakes. He instructed the victim on how, and to whom, to send these payments. Anderson repeatedly contacted the victim with additional requests to pay money and told the victim that her winnings would be forthcoming if she paid the requested money. Anderson induced the victim to travel to Jamaica in September 2017 by falsely informing her that she would be able to collect her prize winnings. He told the victim to bring $1,600 in cash with her to Jamaica and instructed the victim to give the money to a driver that met her at the airport. The victim paid the purported fees but never received any of her purported winnings. “The Justice Department’s Consumer Protection Branch is committed to bringing transnational criminals who defraud Americans to justice, wherever they are located,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Ensuring that those who perpetrate these types of fraud schemes are held accountable is a priority of the department, and I thank the government of Jamaica for its assistance extraditing the defendant to face charges here in the United States.” “Making a living by exploiting the trust of Americans and draining their hard-earned savings is despicable,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “The District of South Dakota, working alongside our law enforcement partners, will pursue and prosecute anyone who engages in criminal acts that harm Americans. “Collaboration between international law enforcement partners is critical to protecting the international rule of law and the U.S. Mailstream,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The U.S. Postal Inspection Service is committed to protecting Americans from transnational crime and is grateful to our partners in Jamaica for assistance in bringing Anderson to Justice.” Anderson is charged with eight counts of wire fraud filed in the U.S. District Court for the District of South Dakota in February 2023 and was unsealed upon the defendant’s extradition to the United States on Aug. 22. If convicted, Anderson faces a maximum penalty of 20 years in prison for each count. USPIS investigated the case. The Jamaica Constabulary Force provided critical assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Anderson. Trial Attorneys Brandon Robers and Edward Emokpae of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Ann Hoffman for the District of South Dakota prosecuted the case. The Justice Department continues to investigate and bring charges in other similar matters involving attempts to defraud residents of the United States. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available. More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage www.justice.gov/elderjustice . For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch . Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, at www.ovc.gov . For more information about the Consumer Protection Branch and its fraud enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Hungarian National Arrested on Charges of Conspiring to Export U.S. Military-Grade Radios to Russian Government End Users

component: National Security Division (NSD)

body_text: WASHINGTON – Bence Horvath, 46, of Spain, was arrested in San Francisco, California on charges, unsealed today, that he conspired with others to illegally export U.S.-origin radio communications technology to Russian government end users without a license. The arrest and charges were announced today by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew Olsen, Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI) New Orleans Field Office, Special Agent in Charge Darrin K. Jones of the Defense Criminal Investigative Service (DCIS) Southeast Field Office, and Special Agent in Charge Trey McClish of the Department of Commerce Office of Export Enforcement (DOC) Dallas Field Office. Horvath was arrested on arrival at San Francisco International Airport in San Francisco, California on August 23, 2024. He is charged by complaint with one count of conspiring to violate the Export Control Reform Act of 2018 (“ECRA”). According to the complaint, Horvath and others managed a multinational procurement network that contracted directly with various entities in the Russian government and worked on large scale projects such as the construction of operational radio communications systems in Russia’s Kursk region along the Russian/Ukrainian border. The complaint alleges that Horvath himself arranged to purchase U.S.-origin radio communications technology and smuggle such technology to Russian government end-users through a network of affiliates located in Spain, Serbia, Hungary, Latvia, and elsewhere. “This defendant allegedly sought to skirt U.S. export controls put in place to protect our national security and to address Russia’s unprovoked invasion of Ukraine,” said U.S. Attorney Graves. “We will continue to work with our partners to bring to justice those who scheme to secure U.S. technology in violation of U.S. laws.” “As alleged, the defendant attempted to purchase military-grade radios for Russian entities using a multinational procurement chain to evade law enforcement,” said Assistant Attorney General Olsen. “The Justice Department remains committed to disrupting and holding accountable criminal networks that continue to fuel Russian aggression abroad and threaten our collective security.” “HSI protects national security by defending our U.S. import and export laws,” said Special Agent in Charge DeLaune. “This criminal thought he could exploit our laws for nefarious purposes, but thanks to HSI special agents and our partners at the Defense Criminal Investigative Service, he was stopped in his tracks.” “Securing DoD technology and innovation from foreign adversaries is critical to U.S. national security,” said Special Agent in Charge Jones. “DCIS and our partners remain committed to protecting American-made military and dual-use technologies by using every tool at our disposal, and we’ll never rest in our pursuit of those who intend to harm the United States and our allies.” “Targeting illicit global procurement networks that operate in the shadows to equip the Russian government is of the highest priority to BIS,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “As Horvath’s arrest demonstrates, it doesn’t matter where in the world you operate – when the United States believes your conduct violates our export laws, we take action.” According to the complaint, beginning at least around January 2023, Horvath and others in his network initiated discussions with a small U.S. radio distribution company about procuring and exporting to Russia U.S.-manufactured military-grade radios and related accessories. Over the next several months, Horvath continued his efforts to secure those items, which he intended to transship to Russia via a freight forwarder in Latvia. As part of the conspiracy, Horvath purchased 200 of the military-grade radios and intended to export them to Russia. But he was not successful, as U.S. Customs and Border Protection detained the shipment, preventing the radios from falling into the hands of prohibited Russian end users. This case is being investigated by the Department of Homeland Security Investigation’s New Orleans, Louisiana Field Office, the Defense Criminal Investigative Service, and the Department of Commerce. Assistance was provided by the U.S. Attorney’s Office for the Northern District of California. The case is being prosecuted by Assistant U.S. Attorneys Christopher Tortorice and Maeghan Mikorski of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section with assistance from Paralegal Specialists Kate Abrey and Jorge Casillas, of the USAO-DC. Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


body_text: The Justice Department unsealed a criminal complaint charging Hungarian national Bence Horvath with violations of U.S. export controls targeting Russia, including by conspiring with others to illegally export U.S.-origin radio communications technology to Russian government end users without a license. Horvath is charged by complaint with one count of conspiring to violate the Export Control Reform Act of 2018 (ECRA). He was arrested on arrival at San Francisco International Airport in San Francisco, California, on Aug. 23. “As alleged, the defendant attempted to purchase military-grade radios for Russian entities using a multinational procurement chain to evade law enforcement,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department remains committed to disrupting and holding accountable criminal networks that continue to fuel Russian aggression abroad and threaten our collective security.” “Targeting illicit global procurement networks that operate in the shadows to equip the Russian government is of the highest priority to BIS,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS). “As Horvath’s arrest demonstrates, it doesn’t matter where in the world you operate – when the United States believes your conduct violates our export laws, we take action.” “This defendant allegedly sought to skirt U.S. export controls put in place to protect our national security and to address Russia’s unprovoked full-scale invasion of Ukraine,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to work with our partners to bring to justice the people who scheme to secure U.S. technology in violation of U.S. laws.” According to the court documents, Horvath and others managed a multinational procurement network that contracted directly with various entities in the Russian government and worked on large scale projects such as the construction of operational radio communications systems in Russia’s Kursk region along the Russian/Ukrainian border. The complaint alleges that Horvath himself arranged to purchase U.S.-origin radio communications technology and smuggle such technology to Russian government end-users through a network of affiliates located in Spain, Serbia, Hungary, Latvia, and elsewhere. Beginning at least around January 2023, Horvath and others in his network initiated discussions with a small U.S. radio distribution company about procuring and exporting to Russia U.S.-manufactured military-grade radios and related accessories. Over the next several months, Horvath continued his efforts to secure those items, which he intended to transship to Russia via a freight forwarder in Latvia. As part of the conspiracy, Horvath purchased 200 of the military-grade radios and intended to export them to Russia, but he was not successful. U.S. Customs and Border Protection detained the shipment, preventing the radios from falling into the hands of prohibited Russian end users. Homeland Security Investigation, Defense Criminal Investigative Service and Department of Commerce are investigating the case. Assistant U.S. Attorneys Christopher Tortorice and Maeghan Mikorski for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Two Members of Violent Waterbury Gang Sentenced to Prison

body_text: EZRA ALVES, also known as “EJ” and “Ezzy,” 24, and his brother, AHMED ALVES, also known as “Stones,” 26, both of Waterbury, were sentenced today in Bridgeport federal court for offenses related to their participation in a violent Waterbury street gang. U.S. District Judge Kari A. Dooley sentenced Ezra Alves to 252 months of imprisonment and five years of supervised release, and Ahmed Alves to 54 months of imprisonment and three years of supervised release. Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Maureen T. Platt, State’s Attorney for the Waterbury Judicial District; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; and Waterbury Police Chief Fernando C. Spagnolo. According to court documents and statements made in court, in an effort to address drug trafficking and related violence in Waterbury, the FBI, ATF, and Waterbury Police have been investigating multiple Waterbury-based groups, including the 960 gang. On September 14, 2021, a federal grand jury in Hartford returned a 36-count indictment charging Ezra Alves, Ahmed Alves, and 14 other 960 gang members with racketeering, narcotics trafficking, firearm possession, murder, attempted murder and assault, and obstruction of justice offenses. On March 20, 2024, Ezra Alves pleaded guilty to one count of racketeering conspiracy, three counts of attempted murder and assault with a dangerous weapon in aid of racketeering, two counts of carrying and using a firearm during and in relation to a crime of violence, and one count of conspiracy to possess with intent to distribute, and to distribute, controlled substances. Alves specifically admitted that he and other 960 members were engaged in drug trafficking and violent activity, and conspired to shoot and murder members of rival gangs. On September 21, 2018, in retaliation for the murder of an associate, Ezra Alves and other 960 members participated in a drive-by shooting of an occupied residence on Scott Road in Waterbury. On October 6, 2018, in a drive-by shooting, Ezra Alves and other gang members attempted to murder individuals believed to be members of a rival gang, which resulted in gunshot wounds to an individual. On November 18, 2018, Ezra Alves and other gang members participated in a drive-by shooting of rival gang members, which resulted in gunshot wounds to two individuals. Ezra Alves has been detained since November 15, 2019. On March 12, 2024, Ahmed Alves pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances, and one count of being an accessory after the fact. Alves admitted that he trafficked drugs in furtherance of the 960 enterprise. He also admitted that, after the gang-related shooting that occurred on November 18, 2018, he picked up 960 members who participated in the shooting using a stolen car, and drove them to a 960 member’s residence where they stashed firearms. Later, 960 members drove the stolen car and left it in Meriden, and Ahmed Alves again picked them up. Ahmed Alves, who was arrested on September 16, 2021, has been released on a $100,000 bond. He is required to report to prison on October 7. This investigation has been conducted by the FBI’s Northern Connecticut Gang Task Force, Waterbury Police Department, ATF, and U.S. Marshals Service, with the assistance of the Southington Police Department, Watertown Police Department, New Milford Police Department, Connecticut State Police, Connecticut Department of Correction, Connecticut Forensic Science Laboratory, and the DEA Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone, John T. Pierpont, Jr., and Natasha M. Freismuth, and Supervisory Assistant State’s Attorney Don E. Therkildesen, Jr., and Deputy Assistant State’s Attorney Alexandra Arroyo of the Waterbury State’s Attorney’s Office, who have been cross-designated as Special Assistant U.S. Attorneys in this matter. This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn . OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Parkersburg Man Admits to Firearms Violation

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – Michael McHenry, age 22, of Parkersburg, West Virginia, has admitted to the unlawful possession of a firearm. According to court documents and statements made in court, McHenry is prohibited from having firearms because of a grand larceny conviction in Wood County. McHenry had a 9mm pistol. McHenry faces up to 15 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant U.S. Attorney Andrew Cogar is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Monongalia County Sheriff’s Office investigated. U.S. Magistrate Judge Michael John Aloi presided.


title: United Seating and Mobility, LLC, D/B/A Numotion, Agrees to Pay $13,500,000 to Resolve Alleged False Claims for Custom Wheelchairs

component: USAO - Arizona

body_text: PHOENIX, Ariz. – United States Attorney Gary M. Restaino announced today that United Seating and Mobility, LLC, d/b/a Numotion (Numotion), a Missouri limited liability company that provides specialized durable medical equipment, agreed to pay $13,500,000 to resolve allegations that the company violated the federal False Claims Act (FCA). The settlement resolves allegations by the United States that Numotion submitted false claims to Medicare and other federal health care programs for custom wheelchairs and wheelchair parts. According to the United States’ allegations, the claims were false because they were based on patient evaluations that were unlawfully authored, completed, or signed by Numotion employees rather than being authored, completed, or signed by qualified medical professionals. Additional details of the United States’ allegations are set forth in the settlement agreement, available here. Numotion Settlement Agreement “The custom wheelchairs and parts involved in this investigation are critical to helping patients who rely on federal health care programs, including America’s veterans, meet their medical needs and thrive,” said United States Attorney Gary Restaino. “But medical professionals must evaluate the need, not sales personnel from the supplier. Thanks to Numotion for self-reporting this conduct and cooperating in the investigation, and to the Inspector General for protecting the public fisc and ensuring accountability.” “Providers that participate in the federal health care system are required to obey the laws and regulations meant to protect the integrity of these programs,” said Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health & Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG will continue working with our law enforcement partners to hold providers accountable when they do not follow these statutes.” The settlement resolves three qui tam , or whistleblower, lawsuits filed in the United States District Court for the District of Arizona. Under the qui tam provisions of the False Claims Act, private citizens may bring civil actions on behalf of the United States and share in any recovery obtained. The lawsuits resolved by the settlement agreement are: United States ex rel. Weiss v. United Seating & Mobility, LLC, d/b/a Numotion (CV-20-1573-PHX-SPL) United States ex rel. Vega v. United Seating and Mobility d/b/a Numotion, et al. (CV-21-1306-PHX-DJH) United States and State of Tennessee ex rel. Prager v. United Seating and Mobility LLC, d/b/a Numotion (CV-22-1899-PHX-CDB) Through a series of self-disclosures, Numotion voluntarily reported several overpayments to the United States and cooperated with the United States’ investigation. The United States considered Numotion’s self-disclosures as one of several factors in reaching the settlement amount and the resolution of the case. The settlement is neither an admission of liability by Numotion, nor a concession by the United States that its claims are not well founded. The U.S. Department of Health and Human Services – Office of Inspector General conducted the investigation in this case. The case was handled by the Affirmative Civil Enforcement Unit of the United States Attorney’s Office for the District of Arizona and by the Department of Justice, Civil Division, Commercial Litigation Branch, Fraud Section. Individuals with information regarding fraud, waste, or abuse related to federal programs should contact the relevant federal agency. A list of agencies and contact information can be found at https://www.justice.gov/usao-az/agency-links . CASE NUMBERS: CV-20-1573-PHX-SPL CV-21-1306-PHX-DJH CV-22-1899-PHX-CDB RELEASE NUMBER: 2024-117_Numotion # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Trumbull Man Sentenced to 30 Months in Federal Prison for Illegal Receipt of Firearm

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHASE DRALLE, also known as “Chevy,” 21, of Trumbull, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 30 months of imprisonment, followed by three years of supervised release, for a firearm offense. According to court documents and statements made in court, on July 26, 2023, Stefan Bagley, Jr. was shot and wounded while traveling in his vehicle in Bridgeport. Later that same day, Bagley’s vehicle was used in another shooting incident in Bridgeport. An investigation revealed that, between October 2022 and October 2023, Bagley purchased approximately 20 9mm handguns from licensed firearm dealers and then trafficked the guns to a network of customers, including Dralle. Bagley typically scratched the serial numbers off of the firearms before providing them to his customers, making the guns more difficult to trace. During the investigation, a search of Bagley’s text messages revealed communications between him and Dralle in which the two discussed Bagley purchasing a firearm and ammunition for Dralle. Dralle then paid Bagley more than $700 for a 9mm firearm. Dralle was arrested on December 18, 2023. On May 2, 2024, he pleaded guilty to receipt of a trafficked firearm. Dralle, who had been released on bond, has been detained since August 21, 2024, when his bond was revoked. Bagley pleaded guilty to a related charge and awaits sentencing. Most of the firearms purchased by Bagley are unaccounted for. U.S. Attorney Avery noted that this case is being prosecuted, in part, under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms. This matter is being investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Bridgeport Police Department, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Kenneth L. Gresham. 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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn .


title: Burlington County, N.J., Man Sentenced to Over Three Years in Prison for Two Business Schemes That Defrauded Investors of Approximately $550,000

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Salerno, 55, of Mount Laurel, New Jersey, was sentenced today by United States District Court Judge Paul S. Diamond to 37 months’ imprisonment and ordered to pay restitution in the amount of $549,835 in connection with multiple elaborate schemes that defrauded hundreds of investors out of more than half a million dollars. Salerno was indicted for the schemes in September of 2020, and in February 2023, pleaded guilty to three counts of wire fraud. Between September 2016 and at least November 2018, the defendant operated a series of businesses, including Black Diamond Forex, L.P., BDF Trading, L.P., Advanta Capital Markets, Inc., and Advanta FX, each of which purported to be in the business of trading foreign currencies. Using a variety of misrepresentations and omissions, Salerno induced victims to pay advance fees — up-front payments of typically more than $1,000 — in order to be hired by Salerno’s company. He told the victims that, upon their hiring, he would make available to them a pool of $10 million that they could trade on the foreign currency market and take a generous cut of any profits. Each of these representations was false. To make his fraudulent activities appear legitimate, Salerno held himself out as a sophisticated and successful businessman. He claimed that he had been a profitable currency trader, and to have managed a real estate empire, a portion of which he said he sold for $10 million to fund the currency-trading venture — none of which was true, either. In fact, he declared bankruptcy twice, most recently in 2015, and had been evicted multiple times from rental homes for failure to pay rent. In 2005, he pleaded guilty to federal tax charges and was sentenced to 21 months in prison. He failed to disclose any of this to the victims before taking their money, instead collecting more than $300,000 in advance fees and using the money for his own benefit. The defendant’s currency-trading scheme came to a halt when he was advised that he was the target of an FBI investigation and the Commodity Futures Trading Commission sought and obtained an injunction against Salerno and his businesses in 2018. However, Salerno turned immediately to a second scheme. Between May 2018 and at least December 2019, he operated a company called AccuOne Financial, Inc., which purported to be in the business of assisting clients in ridding themselves of unwanted automobile leases. It also purported to offer a different set of clients, whose personal credit precluded them from obtaining an automobile lease, access to automobile leases, low-interest vehicle loans, and credit repair services. But Salerno failed to do as promised, instead ripping off both sets of clients. The defendant took the unwanted vehicles from the first set of clients, made few, if any, of the required lease payments, and then gave the vehicles to the second set of clients who could not obtain their own leases, in exchange for substantial monthly fees. The predictable result of this house of cards-style scheme was that the clients who wanted to get out of their leases either continued to make monthly lease payments for cars they no longer had or suffered substantial damage to their credit, and the clients who leased cars from AccuOne often had them repossessed without warning. Salerno netted several hundred thousand dollars from this scheme alone. “Michael Salerno is a modern-day snake oil salesman,” said U.S. Attorney Romero. “Upon learning that his fraud scheme had caught the FBI’s attention, he didn’t close up shop and clean up his act – he simply pivoted to a different scheme. Today’s sentence holds him accountable for the harm he’s caused and brings a measure of justice for his victims. My office and the FBI are working every day to put scammers and swindlers like this out of business.” "Under the guise of a businessman, Salerno was truly a criminal, devising schemes built on manipulation and lies, which placed the financial security of his victims at risk,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI will continue to rigorously pursue those who attempt to enrich themselves through fraudulent means.” The case was investigated by the FBI and prosecuted by Assistant United States Attorney Matthew Newcomer and former Assistant United States Attorney Christopher J. Mannion.


title: New York Auto Repair Shop Owner Sentenced for Conspiracy to Commit Tax Fraud

component: Tax Division

body_text: A New York man was sentenced today to 20 months in prison for conspiring to defraud the United States by concealing income from the IRS. According to court documents and statements made in court, Aniello Strocchia, of Maspeth, owned and operated an auto repair shop. From 2013 to 2017, Strocchia cashed, with the help of others, more than $1.3 million in checks made out to the shop at commercial check-cashing businesses, instead of depositing those funds into the shop’s bank account. Strocchia then hid the check-cashing activity from his return preparers, thereby causing his preparer to file false tax returns for himself and his business. The business returns underreported the shop’s gross receipts and ordinary business income; and his personal returns underreported his total income. In addition, Strocchia did not pay the full amount of the taxes he reported as due on his personal returns. Instead of reporting all his income and paying all the taxes he owed, Strocchia spent money on luxury items, including a luxury car collection, a second home and approximately $500,000 on extensive home renovations. In total, Strocchia caused a loss to the IRS of $989,976. In addition to his prison sentence, U.S. District Judge Hector Gonzalez for the Eastern District of New York ordered Strocchia to serve two years of supervised release and to pay approximately $989,976 in restitution to the United States. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York made the announcement. IRS Criminal Investigation is investigating the case. Trial Attorney Matthew Cofer of the Tax Division prosecuted the case.


title: Two high-seas mariners convicted for violation of Maritime Drug Law Enforcement Act in the Eastern Pacific Ocean

component: Drug Enforcement Administration (DEA)

body_text: NORFOLK, Va. – A federal jury convicted two Nicaraguan nationals on Aug. 23 for possession with intent to distribute over two tons of marijuana on the high seas, in international waters in the Eastern Pacific Ocean, on board a stateless vessel subject to the jurisdiction of the United States. According to court records and evidence presented at trial, on Sept. 27, 2023, while on routine patrol in the Eastern Pacific, a maritime patrol aircraft located a go-fast vessel (GFV) in international waters 97 nautical miles southwest of Malpelo Island, Colombia. The U.S. Coast Guard Cutter (USCGC) James (WSML 754), a National Security Cutter, was patrolling nearby and maneuvered to intercept the GFV. After requesting and receiving authority, Cutter James launched a helicopter, which first attempted to contact the GFV on a maritime channel, then activated its blue warning lights, fired three warning shots across the bow, and, as the vessel failed to yield, engaged a precision gunner to disable the GFV’s engines. A boarding team launched from the Cutter James and found three individuals onboard, including Maximo Zacarias, 43, Ismael Alexis Martinez, 29, and Bernacio Solares Ramon, 30. The boarding team determined the GFV, El Tanque, was without nationality. The team was authorized to recover 74 bales of marijuana, weighing of 4,610 pounds, and a five-gallon bucket containing electronics devices such as a GPS, SAT phone, ship-to-ship walkie-talkie, and other communication devices. Ramon was in possession of paperwork with GPS coordinates for the routes of travel to near a Pacific island off the coast of Costa Rica. Zacarias and Ramon are scheduled to be sentenced on Dec. 19. They face a mandatory minimum sentence of 10 years and up to life in prison. Martinez pled guilty on Aug. 8 to possession with intent to distribute more than 1000 kilograms of marijuana on board a vessel. He is scheduled to be sentenced on Dec. 17, and faces a mandatory minimum of ten years and up to life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Rear Admiral Joseph R. Buzzella, U.S. Coast Guard, Commander, Eleventh Coast Guard District; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the verdict. The Maritime and Counternarcotics Unit within the Narcotics and Dangerous Drugs Section of the Justice Department’s Criminal Division provided substantial assistance. Assistant U.S. Attorneys Kevin M. Comstock, Eric M. Hurt, and Joseph E. DePadilla are prosecuting the case. 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 . A copy of this press release is located on the website of the U.S. Attorney’s Ofﬁce for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-129.


title: Former Kern County Man Sentenced to 20 Years in Prison for Sexual Exploitation of a Minor

component: USAO - California, Eastern

body_text: FRESNO, Calif. — James Patrick Breedlove III, 34, formerly of Bakersfield, was sentenced today to 20 years and 10 months in prison to be followed by a lifetime term of supervised release for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced. According to court documents, between January 2019 and August 2020, Breedlove knowingly coerced minors to engage in sexually explicit conduct for the purpose of producing images and videos of such conduct. In January 2020, Breedlove posed as a 16-year-old to obtain images and videos of a minor victim engaging in sexually explicit conduct. After receiving one such image, Breedlove threatened to send it to other children at the minor victim’s school if she did not send more images and videos of herself engaging in sexually explicit conduct. Court documents also indicate that Breedlove used Snapchat to contact multiple other minor victims between the ages of 13 and 17 years old. By misrepresenting his identity and threatening to distribute the images, Breedlove coerced other minor victims to send images and videos of themselves engaging in sexually explicit conduct. This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.


title: Former Willard Mayor Sentenced for $300,000 Fraud Scheme

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – A former mayor and alderman of Willard, Mo., was sentenced in federal court today for a five-year-long scheme in which he used personal identity information to steal nearly $300,000 from more than 500 truck drivers who worked for his employer. Corey Louis Hendrickson, 46, of Springfield, Mo., was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole. The court also ordered Hendrickson to pay $298,737 in restitution. On Oct. 24, 2023, Hendrickson pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Hendrickson, who served as Willard’s mayor from 2015 to 2021 before being elected as an alderman in 2022, resigned from his position on the Willard Board of Aldermen the same day. Hendrickson admitted that he gained unauthorized access to the fuel expense accounts of more than 500 individuals and conducted more than 1,000 fraudulent transactions that resulted in at least $298,737 being stolen from his victims. Hendrickson’s fraud scheme lasted almost five years, from Sept. 9, 2016, to Aug. 17, 2021. Hendrickson worked as a fleet dispatcher for Prime, Incorporated, a freight transportation and logistics trucking company that is headquartered in Springfield. Prime contracted with ComData to serve as a payment processor and issuer of fleet fuel cards, and to maintain the financial accounts of Prime drivers that were used to pay for fuel costs as needed by the truck drivers. Prime put funds into each driver’s ComData account, which was then utilized for driving expenses such as fuel. ComData cards were used by the drivers like a bank card. Hendrickson used his computer access to steal the identity information of drivers and withdraw nearly $300,000 from the accounts intended to pay for the fuel costs for drivers employed by Prime. He transferred the stolen funds into his personal bank accounts. According to court documents, Hendrickson’s victims incurred losses that ranged between less than $100 to $6,495, with the average loss of a few hundred dollars for each Prime driver’s account. This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service and the Springfield, Mo., Police Department.


title: Tehachapi Man Sentenced for Fraud and Identity Theft Offenses

body_text: FRESNO, Calif. — Blake Wayne Reed, 28, of Tehachapi, was sentenced today to four years and four months in prison and ordered to pay $48,052 in restitution for committing bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced. According to court documents, between August 2020 and April 2021, Reed obtained hundreds of pieces of stolen mail that included at least 130 checks and approximately 30 debit cards or credit cards belonging to other individuals and businesses. Reed then forged signatures on the stolen checks and used the stolen debit cards to deposit the checks into victims’ bank accounts. He then made cash withdrawals from the accounts. Reed’s scheme caused more than $40,000 in fraudulent transactions to be made on the victims’ accounts. This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Brittany M. Gunter and Joseph D. Barton prosecuted the case.


title: Former Marine convicted of receiving and possessing thousands of images and videos of child sexual abuse

body_text: ALEXANDRIA, Va. – A federal judge convicted a former U.S. Marine today on charges of receiving and possessing child sexual abuse material (CSAM). According to court records and evidence presented at trial, in February 2021, Eman Goodwin, 33, attempted to obtain CSAM from a CSAM trafficker on Kik, who was later convicted of production of child pornography. Goodwin told the trafficker he was specifically looking for “younger than HS” and “12 and under.” On March 24, 2022, the FBI executed a search warrant and seized 21 electronic devices from Goodwin’s apartment, his pocket, and his car. Forensic examination of the devices revealed that Goodwin used two laptops to download CSAM from the Internet and stored the CSAM on an external hard drive. The hard drive contained nearly 5,000 images and videos depicting children, including prepubescent children, engaged in sexually explicit conduct and bestiality. Goodwin categorized the files into folders with explicit titles, including “CP FULL” and “under 18 nude girl vids.” The defendant also saved hundreds of CSAM files on three cell phones, including on the phones from his pocket and his car. Goodwin faces a mandatory minimum of five years in prison when sentenced on Dec 13. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Brian Platt, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Washington D.C. Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton entered the verdict. Assistant U.S. Attorneys Lauren Halper and Seth Schlessinger are prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc . 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. 1:23-cr-161.


title: Philadelphia Fentanyl Trafficker Is Sentenced To 12 ½ Years In Prison

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – Today, Jomeir Zakied McCutchen, 27, of Philadelphia, Pennsylvania, was sentenced to 150 months in prison followed by five years of supervised release for trafficking fentanyl and methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement. According to court documents and the sentencing hearing, on October 10, 2022, at approximately 5:46 p.m., a CMPD officer was at a Quick Trip (“QT”) gas station in Charlotte, when he observed an individual, later identified as McCutchen, engage in a hand-to-hand drug transaction. Specifically, the officer observed an individual hand McCutchen U.S. currency in exchange for a clear bag containing suspected narcotics. Court records show that when McCutchen saw the officer he quickly walked into the QT and then was picked up at a side door of the store by a juvenile female, who drove away from the gas station in a white SUV at a high rate of speed. The officer followed McCutchen and attempted to conduct a traffic stop but the juvenile driver did not obey and drove away. A little while later, the officer located the unoccupied white SUV parked in the parking lot of an apartment complex. While looking through the vehicle’s windows, the officer observed in plain view drugs and drug paraphernalia, including digital scales. Law enforcement conducted a search of the vehicle, seizing a bag containing more than 12 grams of fentanyl. The officers also located identifying documents in the vehicle in the name of the defendant. Further investigation revealed that McCutchen was a convicted felon on parole in Pennsylvania. According to court records, on October 11, 2022, law enforcement located McCutchen at a gas station in Charlotte. Law enforcement observed McCutchen exit the gas station and approach a red vehicle. CMPD Officers attempted to stop McCutchen, but the defendant fled on foot, dropping a black pistol to the ground as he ran off. McCutchen was arrested and detained. Law enforcement searched the red vehicle and seized over 83 grams of methamphetamine. Law enforcement also recovered the discarded firearm and determined it was loaded with a round in the chamber. On February 21, 2024, McCutchen pleaded guilty to possession with intent to distribute fentanyl and possession with intent to distribute methamphetamine. McCutchen is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. In imposing the sentence, U.S. District Court Judge Kenneth D. Bell noted that prior convictions and probation from other courts had not deterred the defendant. U.S. Attorney King thanked the ATF and CMPD for their investigation of the case. Assistant U.S. Attorney Robert J. Gleason with the U.S. Attorney’s Office in Charlotte prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Bank Employee Is Charged For Alleged Fraud Scheme

body_text: CHARLOTTE, N.C. – A federal grand jury returned a criminal indictment last week against Jaminata Starks, 29, of Charlotte, for her role in a scheme involving fraudulent bank accounts, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Starks had her initial appearance in federal court today before U.S. Magistrate Judge David C. Keesler. Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement. According to allegations in the indictment, Starks was employed by a financial institution (Victim Bank) and worked for a branch in Charlotte. As part of her duties, Starks was authorized to, among other things, open new bank accounts for existing customers and transfer funds between customers’ accounts. The indictment alleges that, between April 13, 2022, and May 23, 2022, Starks conspired with others to misuse the Victim Bank’s customers’ personal identifying information (PII) to fraudulently open new bank accounts in the victims’ names and transfer funds out of the victims’ existing accounts into the fraudulent accounts, without the customers’ knowledge or consent. Starks and her co-conspirators then allegedly used various methods to withdraw the stolen funds. According to the charges, during the scheme, Starks allegedly transferred at least $120,000 from the custody of the Victim Bank and made false entries in the Victim Bank’s books and records. It is further alleged that Starks was offered $1,000 for each fraudulent new account she created. In addition to the charges, the indictment contains a notice for a forfeiture money judgment in the amount of at least $30,000, that the government contends constitutes the proceeds of Starks’s alleged criminal conduct referenced in the indictment. Starks is charged with conspiring to defraud the United States and to violate the laws of the United States, which carries a maximum penalty of five years in prison; four counts of making false entries in a bank record, which carries a maximum of up to 30 years in prison per count; and four counts of aggravated identity theft, which carries a mandatory two-year prison term, consecutive to any other prison term imposed, per count. Starks was released on bond following her initial appearance. The charges against Starks are allegations and the defendant is innocent until proven guilty beyond a reasonable doubt in a court of law. Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case. # # #


title: Charlotte Business Owner Convicted Of Selling Fraudulently Obtained iPhones Overseas Is Sentenced To Prison

body_text: CHARLOTTE, N.C. – Rami Mahmod Mhana, 46, of Charlotte, was sentenced to 68 months in prison followed by three years of supervised release today for selling stolen and fraudulently obtained iPhones and other electronic devices to buyers overseas, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In May 2023, a federal jury convicted Mhana of conspiracy, international transportation of stolen goods, and money laundering, Jason Byrnes, Special Agent in Charge of the United States Secret Service (USSS), Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement. According to court documents, trial evidence, and witness testimony, Mhana was the owner of Wireless City Fashions, Inc. (Wireless City) and Protocol Business Group Inc. (Protocol), located at 441 Bradford Drive in Charlotte, as well as multiple Boost mobile stores in the Charlotte area. From at least May 2017 through October 2019, Mhana purchased thousands of brand-new Apple iPhones and other electronic devices that were stolen and fraudulently obtained. Mhana then sold and shipped the iPhones to the United Arab Emirates (the U.A.E.) and the Hong Kong Special Administrative Region of the People’s Republic of China (Hong Kong). Court records show that Mhana obtained a significant portion of the stolen and fraudulently obtained devices from multiple local “boosters.” A booster is a person who steals or obtains through fraud goods and products and sells them for profit. Mhana’s store on Bradford Drive was known to local boosters as a place they could sell stolen devices for cash with no questions asked. In fact, as trial evidence established, Mhana provided his employees with a pricelist of how much they should pay for certain new model iPhones and other electronic devices, which was significantly less than retail value of the devices. The Court ordered Mhana to pay restitution in the amount of $3,649,033 to the victims of the fraud scheme. The Court also ordered Mhana to forfeit $229,118 and more than 100 new-in-the box iPhones seized during the investigation. Mhana will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. In a separate case, two Charlotte businessmen were sentenced to prison in August 2023, for orchestrating a similar scheme. Both cases were the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat the most significant organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community. Assistant U.S. Attorneys Michael E. Savage, William Bozin, and Benjamin Bain-Creed of the U.S. Attorney’s Office in Charlotte prosecuted the cases.


title: Shelby County Man Convicted of Theft of Government Benefits

component: USAO - Kentucky, Eastern

body_text: FRANKFORT, Ky. - A Shelbyville, Ky., man, Jeremy Wayne Harrell, 43, was convicted on Friday, August 23, by a federal jury in Frankfort, of theft of government benefits. The jury’s verdict was returned following a five-day trial and less than two hours of deliberations. According to testimony at trial, Harrell intentionally stole money from the United States in an amount exceeding $1,000, namely U.S. Department of Veterans Affairs Individual Unemployability (IU) disability payments that he was not entitled to receive. Specifically, the evidence presented at trial indicated that Harrell was initially awarded IU benefits in 2011. In 2019, Harrell then founded Veterans Club, Inc., and he served as the Founder and CEO of the organization. The evidence that showed Harrell had a high level of work activity for Veterans Club, from 2019 through 2023. This included working 40-60 hours per week, actively running the organization, organizing events, managing over $400,000 in assets and approximately 6,000 volunteers, engaging in news media interviews, appearing on podcasts, appearing and speaking at community events, meeting with business and political leaders, teaching classes, accepting donations, among other work. This evidence confirmed that Harrell, as the active and successful Founder and CEO of Veterans Club, could maintain substantial gainful employment, rendering him ineligible to receive the IU benefits that he received from 2019 through 2023. Additionally, the evidence showed that Harrell made numerous false statements to the government about his daily life and work activities, depicting himself as withdrawn, without the ability to perform work, leading a highly restricted life, and rarely leaving his home; when in truth, he was an active and successful CEO of a vibrant organization. The evidence confirmed Harrell made these false representations to the government to depict himself as unemployable, conceal his active role as CEO of an organization, and attempt to continue to receive IU benefits. In total, Harrell wrongfully received more than $108,000 in IU benefits. “In the end, this case was about a simple principle: preventing people from taking government assistance they are not entitled to receive,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “He provided false information to the government, which concealed his ineligibility, and he wrongfully obtained a significant amount funds – funds that should have been provided to other veterans who were eligible for this assistance. I commend the efforts of our law enforcement partners and trial team, whose work defended this simple principle, and resulted in a verdict reaffirming it. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and VA Inspector General Michael J. Missal, jointly announced the verdict. The investigation was conducted by U.S. Department of Veterans Affairs Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney James T. Chapman. Harrell will appear for sentencing on December 9, 2024. He faces a maximum of 10 years in prison and a fine of up to $250,000. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence. — END —


title: Moreno Valley Man Sentenced to More Than 15 Years in Prison for Ponzi Scheme that Drew in More Than $24 Million from Victims

component: USAO - California, Central

body_text: RIVERSIDE, California – A Riverside County man was sentenced today to 188 months in federal prison for running a Ponzi scheme that lasted nearly 20 years and fraudulently obtained more than $24 million from at least 200 investors. Paul Horton Smith Sr., 61, of Moreno Valley, was sentenced by United States District Judge Jesus G. Bernal, who also ordered him to pay $13,331,505 in restitution. Smith pleaded guilty on January 8 to one count of wire fraud. “This defendant’s greed and deceit caused major losses for his victims, who discovered that the supposed gains for their retirement were nothing more than a lie,” said United States Attorney Martin Estrada. “My office will continue to aggressively prosecute fraudsters who take advantage of victims in our community, and I also encourage everyone to use caution and skepticism with regard to any investments, especially those that seem too good to be true.” “Paul Smith's clients trusted him. Smith knew that and used it to his advantage, selling them on a bogus investment opportunity and pocketing those funds,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “The fact that the bulk of his investors were seniors, men and women alike, and in various stages of vulnerability, makes this case all the more heartbreaking. Now, he's finally being held accountable. The FBI will continue shutting down crooks like this to help find justice for their victims.” Smith operated Riverside-based companies named Northstar Communications LLC, Planning Services Inc., and eGate LLC. From July 2000 to May 2020, Smith obtained money from investors by soliciting individuals – who often were elderly or retired – to invest in something Smith called “Northstar.” Some of the investors previously were Planning Services clients. Smith communicated with the victim investors regarding Northstar in person, over the telephone, and via email and text messages. He falsely told investors that Northstar was an annuity or an investment like an annuity. He falsely told other investors that Northstar invested in real estate or followed the stock market. He typically told the investors that their investment would generate a fixed rate of return and was a “safe investment.” While Smith led most Northstar investors to believe his company reinvested their initial investment, generating the percentage they were to earn, in fact, he never invested the money. Instead, Smith deposited all investor funds into a non-interest-bearing checking account. Smith used some money from later Northstar investors to pay earlier Northstar investors’ monthly interest payments and to repay earlier investors who wanted to withdraw their investment. For example, in April 2019, Smith caused one victim to invest with him $400,000 – life insurance proceeds after the victim’s spouse had died. The victim wrote a personal check for that amount and the check was deposited into a bank account in Riverside, which then was electronically transferred to the bank’s Alabama headquarters for processing. Smith promised the victim he would invest the $400,000 in a safe investment with a 5% rate of return. But Smith never invested the money. Instead, he transferred the funds to pay other victims of his Ponzi scheme. In an attempt to conceal his criminal activity, Smith made 11 payments to the victim that totaled $163,324. As a result of the scheme, Smith fraudulently obtained more than $24 million from at least 200 investors. Of these investors, 106 victims have not been fully repaid. The total loss for these victims is $13,331,505. The FBI investigated this matter. The United States Securities and Exchange Commission, which filed a complaint and obtained a judgment against Smith and Northstar Communications LLC in 2020, provided assistance. Assistant United States Attorney Benjamin J. Weir of the Riverside Branch Office prosecuted this case.