title: Four Accused of Nationwide Financial Scam Targeting Elderly

body_text: ST. LOUIS – Four men from California have been indicted in connection with a nationwide tech support fraud scam targeting the elderly. Liang Jin, 24, of Walnut, Tsz Yin Kan, 41, of Chino Hills, and Kaiyu Wen, 25, of Irvine, were added Wednesday to an existing indictment against Yu-Chieh Huang, 22, of Chino Hills, filed in U.S. District Court in St. Louis last year. Jin, Wen and Huang face one felony count of conspiracy to commit mail, bank and wire fraud and multiple counts of wire fraud. Kan faces one felony count of conspiracy to commit mail, bank and wire fraud. Huang has been in custody since August, when he was arrested after arriving to pick up $88,000 from an elderly Missouri couple and was accused of being a courier for the scammers, charging documents say. After investigators began seizing funds from bank accounts associated with Jin, he purchased a one-way flight to China, charging documents say. He was arrested at the airport before his flight. Kan has also been arrested. Wen is still being sought by authorities. Anyone with information is asked to call Homeland Security Investigations at 866-347-2423 or report tips online at ice.gov/tips . “We’ve recently seen more scams employ couriers to pick up money from victims,” said U.S. Attorney Sayler A. Fleming. “This is just one of the warning signs of a scam. I strongly encourage people to be cautious when approached online or in person with demands for money and spread to the word to your friends and family to be vigilant about online scams.” The investigation began in August, after a 78-year-old Missouri man responded to a pop-up message claiming his computer was infected with a virus. The victim and his 76-year-old wife were falsely told that their banking information had been compromised because someone had been accessing child pornography through the computer. To escape criminal prosecution, they were told they had to pay $88,000. Scammers often initiate contact with phone calls, emails or pop-up messages on the target’s computer. They pretend to be tech support workers who will troubleshoot problems if given access to that computer or if paid a fee. Other times they claim the computer contains evidence of a crime and the victims will have to pay a fee to avoid prosecution. Following instructions in a series of text messages, the Missouri couple gathered the money, took photos of it and sealed it in a cardboard box. They were told to wait for a courier but began to be suspicious and balked when the courier arrived. They called police, and the courier was arrested. The man accused of being that courier, Yu-Chieh Huang, 22, was charged by complaint August 11 and indicted September 6. Charging documents say that he was paid $500 to $1,000 to pick up cash from victims and use a counterfeit passport and fraudulently obtained debit card to deposit it into a bank. He then withdrew money in cashier’s checks to send to co-conspirators, the charging documents say. Huang picked up $40,000 in Colorado and $40,000 in Oregon before coming to Missouri, the documents allege. Huang, a college student from Taiwan, has pleaded not guilty. Investigators then learned of the role of Jin, Wen and Kan, according to the criminal complaint and Wednesday’s indictment. Jin and Wen provided couriers with assignments and instructions, charging documents say, with Jin paying the courier salaries. Kan recruited college students to fraudulently open financial accounts using the names and passports of citizens of Taiwan, the charging documents say. About $7 million in cashier’s checks were deposited into one bank account between March 2020 and July 2023, charging documents say, including a $170,000 check Kan deposited into a Missouri bank on June 29, 2022, the documents say. Huang conducted approximately $4 million in currency transactions during 2021 and Jin conducted over $5.7 million in currency transactions between June 2021 and September 2023. Jin was admitted to the United States as a nonimmigrant student visa holder from China on Feb. 2, 2020, but is considered to have overstayed his visa. Wen was admitted to the United States as a nonimmigrant student visa holder from China on March 6, 2020. He was terminated from the educational program when he failed to enroll and has overstayed his visa. The indictment seeks the forfeiture of $6.8 million investigators identified in a series of financial accounts. The conspiracy charge is punishable by up to 30 years in prison, a $1 million fine or both prison and a fine. Each wire fraud charge is punishable by up to 20 years in prison, a $250,000 fine or both. If convicted, restitution would be mandatory. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Tracy Berry and Kyle Bateman are prosecuting the case. Report cybercrime online at the Internet Crime Complaint Center at ic3.gov .


title: Armed Methamphetamine Trafficker And Co-Conspirators Are Sentenced To Prison

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – An armed methamphetamine trafficker and his co-conspirator were sentenced in federal court today, 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 Stephen Zill of the Gaston County Police Department join U.S. Attorney King in making today’s announcement. Bret Scott Funderburk, 34, of Gastonia, N.C., was sentenced to 15 years in prison followed by five years of supervised release, after he pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession of a firearm by a convicted felon. Eric Eugene Allen, 42, of Gastonia, N.C., was sentenced to 10 years in prison followed by five years of supervised release, after he pleaded guilty to two counts of distribution of methamphetamine. Funderburk’s mother, Melanie Mitchum Funderburk, 55, of Gastonia, N.C., has pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and five counts of distribution of methamphetamine, and is currently awaiting sentencing. According to court documents and court proceedings, from March 2021 to April 2021, Bret Funderburk, Melanie Funderburk, and Eric Allen operated a drug conspiracy and distributed methamphetamine in and around Gaston County. Court records also show that Bret Funderburk sold methamphetamine while he illegally possessed firearms and illegally sold firearms. Specifically, on March 10, 2021, Bret Funderburk engaged in a drug transaction while he illegally possessed a Ruger LC9 pistol, and a stolen Ithaca Model 66 sawed-off shotgun. Over the course of the transaction, Bret Funderburk sold the stolen sawed-off shotgun to another individual. Court documents further show that, on March 30, 2021, Bret Funderburk engaged in another drug transaction, during which he illegally possessed and sold a Taurus PT738.38 caliber pistol. Bret Funderburk has prior criminal convictions and he is prohibited from possessing firearms. Bret Funderburk and Allen are in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. In making today’s announcement, U.S. Attorney King commended the ATF and the Gaston County Police Department for their investigation of the case. Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.


title: Union County Man Sentenced to 80 Months in Prison for Receiving Child Pornography

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 80 months in prison for receiving videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced. Joshua Cremosnik, 50, of Rahway, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging him with one count of receipt of child pornography. Judge Neals imposed the sentence today in Newark federal court. According to documents filed in this case and statements made in court: From April to August 2021, Cremosnik received videos of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program. Subsequent to a lawful search of his residence, law enforcement officers recovered numerous videos and images of child sexual abuse on Cremosnik’s laptop and electronic storage media. Cremosnik acknowledged using the P2P network to request and receive child pornography materials and stored those materials on his laptop and electronic storage media. In addition to the prison term, Judge Neals sentenced Cremosnik to five years of supervised release and ordered restitution of $208,694. U.S. Attorney Sellinger credited the Newark Child Exploitation and Human Trafficking Task force, under the direction of FBI Special Agent in Charge James E. Dennehy, with the investigation leading to today’s sentencing. The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Criminal Division in Newark.


title: Former Coffeewood Prison Guard Arrested on Federal Child Porn Charge

component: USAO - Virginia, Western

body_text: CHARLOTTESVILLE, Va. – A former prison officer at Coffeewood Correctional Center in Mitchells, Virginia was arrested today on federal charges related to his receipt and purchase of child pornography. Davey Jonathan Sisk, 29, of Culpeper, Virginia, was arrested on a federal criminal complaint charging him with one count of receipt of child pornography. According to court documents, an investigation conducted by the Homeland Security Investigations (HSI) revealed that from 2021 through 2022, a now-15-year-old minor living in Texas (MV1), and another minor engaged in sexual intercourse and then sold videos and images of these sexual encounters on the internet through various social applications, including Snapchat. Specifically, it is alleged that Sisk, using the Snapchat username “JAKESMOOT2021,” paid approximately $465 through Cash App to MV1 in exchange for multiple sexually-explicit images and videos. United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement. Homeland Security Investigations - Washington D.C.’s Harrisonburg Field Office is investigating the case. Assistant U.S. Attorney Sally J. Sullivan is prosecuting the case. A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Six People Charged in Just Over a Week in Separate Felony Strangulation Cases

component: USAO - District of Columbia

body_text: WASHINGTON – Between February 5 and February 13, 2024, in the District of Columbia, six people were arrested and charged with felony strangulation under D.C. Code 22-404.04 which was created through the Prioritizing Public Safety Emergency Amendment Act of 2023. They are among 26 people charged since the D.C. Council created this new criminal offense in the D.C. Code which went into effect in July of 2023. The recent cases include: On February 13, 2024, Lontez Williams, 40, of D.C. was arrested and charged with strangulation and child cruelty, for allegedly squeezing the neck of a three-year-old child by wrapping his arm around it, and then hurling the child victim into a couch when his family intervened to stop him. Williams was presented to a magistrate judge on February 13, 2024 and was ordered held*. On February 12, 2024, Leonel Bonilla, 27, of D.C., was arrested and charged with strangulation and aggravated assault, for an alleged attack on a female victim in D.C. The victim reported that Bonilla escalated a verbal altercation occurring in a car when he pulled over and grabbed her around the neck so that she could not breathe and eventually lost consciousness. Bonilla was presented to a magistrate judge on February 12, 2024, and was ordered held*. On February 10, 2024, Marc Gatling, 40, of D.C., was arrested for simple assault and charged with strangulation for an alleged attack on a female victim on February 9, 2024, in D.C., that started as a verbal altercation. The victim left the premises but returned to retrieve personal belongings. While she was there, Gatling allegedly tried to prevent her from leaving, eventually pushing her down and strangling her. Gatling was presented to a magistrate judge on February 10 th and was released. On February 7, 2024, Ronald McKinnon, 63, of Washington, D.C., was arrested and charged with strangulation and one count of kidnapping for an alleged attack on a female in his home. The victim called 911 after the defendant allegedly assaulted and strangled her and confined her in the basement. McKinnon was presented to a magistrate judge on February 9, 2024, and was ordered held*. On February 5, 2024, Michael Alston, 58, of Washington, D.C., was arrested and charged with strangulation and assault with a dangerous weapon after he allegedly punched a 72-year old female, strangled her, and threatened her with a knife. The victim managed to escape. Alston was presented to a magistrate judge and was later released on GPS monitoring. On February 5, 2024, Deangelo Dunn, 27, of Washington, D.C., was arrested and charged with strangulation, after allegedly strangling a female victim because she refused to give him money. Dunn was later released. “The data shows that people strangled by an intimate partner are 800% more likely to be the victim of a homicide,” said U.S. Attorney Matthew M. Graves. “Recognizing this danger, we advocated for a felony charge for strangulation, and we are grateful that the Council passed, and the Mayor signed, emergency legislation temporarily creating a specific felony. We have aggressively charged this crime since it was enacted in July 2023. Now is the time to make the legislation permanent and to create a presumption that people who engage in this life-threatening conduct will be held in jail after their arrest.” In addition to those cases, on January 19, 2024, Joseph Coles, 34, was arrested and charged with simple assault, a misdemeanor, involving a woman he met thru an online dating app. The victim went to Coles’s D.C. home on January 19 th to bring him food. During the visit, the defendant became upset and allegedly began strangling the victim while holding her pinned against a wall. He was released on the simple assault charge and, after further investigation, was charged by superseding complaint with felony strangulation. These cases were investigated by the Metropolitan Police Department. Strangulation is widely recognized as one of the most lethal forms of domestic violence. A major strangulation study in San Diego, which is frequently cited, found: “Many victims suffer internal injuries, including permanent brain damage. Signs and symptoms do exist and can be documented even without visible injury… Most abusers do not strangle to kill. They strangle to show they can kill. Victims often suffer major long-term emotional and physical impacts. Surviving victims are much more likely to die later if their abuser has strangled them.” The study also noted that “…..the odds of becoming a victim of attempted homicide increased by 700%, and the odds of becoming a homicide victim increased by 800%, among women who had been strangled by their partner.” *Defendants that were ordered held had an additional hold-eligible offense since felony strangulation is currently not hold eligible.


title: Hampton Man Pleads Guilty to Multiple Fraud Schemes Totaling Over $2 Million and Will Forfeit More Than $800,000 to the United States Government

component: USAO - New Hampshire

body_text: CONCORD – A Hampton man pleaded guilty today in federal court to four separate fraud schemes involving a total intended loss of approximately $2.1 million, U.S. Attorney Jane E. Young announces. Anthony Silva, 39, pleaded guilty to three counts of wire fraud, one count of mail fraud, and one count of aggravated identity theft. As part of the plea agreement, Silva will forfeit assets totaling over $825,000 to the United States government. U.S. District Court Judge Samantha D. Elliott scheduled sentencing for May 2, 2024. The grand jury returned an initial indictment against the defendant on March 21, 2022, and a superseding indictment on December 20, 2023. Silva orchestrated four separate fraud schemes using stolen identities. Specifically, Silva used stolen names, dates of birth, Social Security Numbers, and other identifiers to fraudulently obtain (1) unemployment insurance benefits from Vermont, (2) unemployment insurance benefits from Massachusetts, (3) American Express credit cards, and (4) CARES Act funds. The fraudulently obtained unemployment benefits and CARES Act funds were deposited either by check or direct deposit into dozens of accounts Silva controlled at multiple banks. Many of these accounts were in the names of individual victims or fictional organizations, with Silva listed as the trustee. Silva obtained more than $400,000 from Vermont, over $150,000 from Massachusetts, and $600,000 from the U.S. Small Business Administration. The fraudulently-obtained credit cards were used to make over $50,000 in purchases from retailers such as Victoria’s Secret and Walmart. Silva also tried unsuccessfully to obtain $1.35 million in CARES Act funding. The total intended loss was approximately $2.1 million. The charge of wire fraud and mail fraud provides for a sentence of up to 20 years in prison and a fine of either $250,000 or twice the gross gain or loss, whichever is higher. The charge of aggravated identity theft provides for a mandatory sentence of 2 years to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The U.S. Postal Inspection Service, Federal Bureau of Investigation, Department of Labor’s Office of the Inspector General, and the United States Secret Service led the investigation. Assistant U.S. Attorneys Alexander S. Chen and John J. Kennedy are prosecuting the case. During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . ###


title: Richmond Felon Sentenced for Possessing Firearm

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

body_text: RICHMOND, Va. – A Richmond man was sentenced today to 77 months in prison for possessing a firearm as a convicted felon. According to court documents, Jon Terry, 38, was arrested in the Six Points area of Richmond on May 24, 2023. Richmond Police Department officers were on foot patrol and encountered three males, including Terry, trying to put air in a mini-bike. During this encounter, one of the officers observed a bulge in the shape of a firearm in Terry’s pocket. When an officer attempted to speak to him, Terry ran. After a foot pursuit, the officers detained Terry and recovered a loaded SCCY 9mm handgun. Terry has prior convictions for distribution of cocaine, possession with intent to distribute cocaine, possession of a firearm by a convicted felon, and grand larceny. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Special Assistant U.S. Attorney Ellen V. Hubbard and Assistant U.S. Attorney Olivia L. Norman 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 of Justice 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. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-108.


title: Rhode Island Man Charged with Maliciously Damaging Shiloh Gospel Temple

body_text: PROVIDENCE, RI – A Rhode Island man is in federal custody after being charged by way of a federal criminal complaint with maliciously damaging or destroying by means of fire or explosion any building or other real property. These charges are brought as the result of an ongoing investigation into multiple fires set around the exterior of Shiloh Gospel Temple in North Providence, RI, on February 11, 2024, announced Zachary A. Cunha, United States Attorney for the District of Rhode Island. Kevin Colantonio, 34, of North Providence, RI, was arrested at his home today without incident by agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, working with members of the North Providence, RI, Police Department and the Rhode Island State Fire Marshal’s Office. He was ordered detained in federal custody following his initial appearance in U.S. District Court. According to documents filed in U.S. District Court in Providence, and in remarks presented by U.S. Attorney Zachary Cunha at a news conference following the court proceedings , it is alleged that Colantonio set several fires around the exterior of Shiloh Gospel Temple shortly after midnight on February 11, 2024. The building was vacant at the time. The fire was quickly extinguished by members of the North Providence Police and Fire Departments. No injuries were reported. The United States Attorney’s Office sought a criminal complaint late on Wednesday, based on an ongoing, multi-agency investigation that, to date, has included a review of numerous videos, witness interviews, and physical evidence collected and analyzed by investigators. The investigation is continuing. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty. The case is being prosecuted by Assistant United States Attorney Peter I. Roklan. ### u.s._attorney_cunha_press_conference_remarks.pdf affidavit.pdf


title: Adair Police Chief Convicted for Fraud, False Statements, and Firearms Charges

body_text: DES MOINES, Iowa – On February 14, 2024, a federal jury in Des Moines convicted Bradley Eugene Wendt, 47, of conspiring to make false statements to the ATF, making false statements to the ATF, and illegal possession of a machine gun. Since July 2018, Wendt has been the Chief of Police for Adair, Iowa. He is also the owner of BW Outfitters, a federal firearms licensee in Denison, Iowa. Evidence at trial showed that, between July 2018 and August 2022, Wendt used his position as Chief of Police to obtain machine guns for his own personal use and profit, including to buy machine guns for his own store. Generally, machine guns made after May 1986 are illegal to transfer and possess. But, law enforcement agencies can buy machine guns for their official use and authorized dealer can get machine guns to demonstrate to a police department for the department’s future possible purchase. If a police department wants to purchase or receive a demonstration of a machine gun, it can submit a letter to ATF, referred to as a “law letter,” expressing its need for and interest in the machine gun. Between July 2018 and August 2022, Wendt wrote nearly 40 law letters, requesting the purchase or demonstration of 90 machine guns for the Adair Police Department. In the law letters to purchase machine guns for his two-man department, Wendt said he was buying the machine guns for the official use of his department and was not getting the machine guns for resale. In the law letters requesting demonstrations of machine guns, Wendt said the Adair Police Department wanted a demonstration for the department’s future possible purchase of the requested machine guns. A jury found that Wendt made false statements in several of these letters, convicting him of conspiracy to make false statements to the ATF and eight counts of making a false statement to the ATF. Evidence at trial showed that Wendt purchased machine guns for the Adair Police Department, but later resold those machine guns at a personal profit of nearly $80,000. The evidence also showed Wendt used demonstration law letters to purchase machine guns for his own gun store, BW Outfitters, including a .50 caliber machine gun called a “Ma Deuce,” which he immediately mounted to his personally owned armored Humvee. Wendt was also convicted of illegal possession of a machine gun, based on his personal possession of a belt-fed, M60 machine gun registered to the Adair Police Department. Wendt, along with his gun store BW Outfitters, hosted a machine gun shoot in April 2022, where he charged the public to shoot machine guns, including several registered to the Adair Police Department. The jury found Wendt was not acting within the scope of his official duties when he possessed the M60 machine gun. Wendt faces up to five years’ prison on the conspiracy count, five years’ prison for each false statement charge, and up to ten years’ prison for illegal possession of a machine gun. Sentencing is scheduled for June 14, 2024, at the United States Courthouse in Des Moines. A federal district court judge will determine any sentence after considering the United States sentencing guidelines and other statutory factors. FBI Omaha Special Agent in Charge Eugene Kowel said “In a stark abuse of the position of trust he held, Brad Wendt exploited his position as chief of police to unlawfully obtain and sell guns for his own personal profit. When so many law enforcement officers in our country are working to protect our communities and uphold the law, Brad Wendt did exactly the opposite. The FBI is committed to working with our law enforcement partners to investigate and hold accountable those who violate their oath of office to enrich themselves.” Kansas City Field Division Special Agent in Charge Bernard Hansen stated “Mr. Wendt was in a position of trust and his egregious behavior betrayed his community he was entrusted to protect. Wendt was sworn to uphold the law, but instead he abused his authority as the Chief of Police for his own personal benefit.” United States Attorney Richard D. Westphal of the Southern District of Iowa, the Bureau of Alcohol, Tobacco and Firearms (ATF), and the Federal Bureau of Investigation (FBI) made the announcement. “No one relishes seeking criminal prosecution of a law enforcement officer,” stated U.S. Attorney Richard Westphal, “however, with the oath of public service, comes the accountability of putting the public trust at the forefront of this duty. An oath that most officers zealously pursue every day with honor. If an individual law enforcement officer is the exception to this rule, then we should not shirk from holding them accountable. Our thanks to the dedicated work of the investigative ATF and FBI agents, and our hard working trial team.” This case was investigated by ATF and FBI, and prosecuted by Assistant United States Attorneys Mikaela Shotwell, Ryan Leemkuil, and Shai Gonzales.


title: Southern California Drug Trafficker Sentenced to Federal Prison

component: USAO - Oregon

body_text: EUGENE, Ore.—A Southern California drug trafficker convicted at trial for possessing with intent to distribute methamphetamine and heroin was sentenced to federal prison Wednesday, announced the U.S. Attorney’s Office for the District of Oregon. Pedro Keny Verganza, 39, of Los Angeles County, California, was sentenced to 75 months in federal prison and three years’ supervised release. According to court documents, in December 2019, investigators with the Albany Police Department obtained information that an individual known as “Pelucha” was a source of supply for illegal narcotics transported by a California-based drug trafficking organization from California to Oregon for redistribution and sale. Further investigation revealed that, in mid-February 2020, a courier working with or on behalf of Pelucha was expected to arrive at a fast-food restaurant in Albany, Oregon to complete a sale of methamphetamine and heroin. On February 15, 2020, law enforcement officers observed the courier, later determined to be Verganza, arrive at the fast-food restaurant with another individual. Law enforcement searched the pair’s vehicle and located a cardboard box containing three large heat-sealed and shrink-wrapped packages containing approximately three and a quarter pounds of methamphetamine and two and a quarter pounds of heroin. Subsequent lab tests revealed Verganza’s fingerprints and palm prints inside the box and on the packages of narcotics. On February 16, 2020, Verganza was charged by federal criminal complaint with possessing with intent to distribute methamphetamine and, on August 19, 2021, a federal grand jury in Eugene indicted Verganza on the same charge. Later, a charge of possessing with intent to distribute heroin was added by superseding indictment. On October 13, 2023, Verganza was found guilty at trial on both charges. This case was investigated by the U.S. Drug Enforcement Administration (DEA) with assistance from the Albany Police Department and Linn County Sheriff’s Office. It was prosecuted by Adam E. Delph and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.


title: Previously Convicted Felon Found Guilty of Illegally Possessing Loaded Firearm

component: USAO - Massachusetts

body_text: BOSTON – A Hyde Park man was convicted yesterday by a federal jury in Boston of being a felon in possession of a Smith & Wesson pistol loaded with ammunition. King Belin, 38, was convicted of one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 23, 2024. Belin was indicted by a federal grand jury in February 2021. On Dec. 20, 2020, Belin was stopped by law enforcement after he failed to yield at an intersection and nearly collided with another car. During the motor vehicle stop a Smith & Wesson, Model SD40VE .40 caliber pistol, loaded with 14 rounds of .40 caliber ammunition were found in Belin’s waistband. Belin then attempted to flee, and a struggle ensued. He was immediately apprehended. At the time of the offense, Belin was on federal supervised release for a 2015 conviction of being a felon in possession of a firearm and ammunition, for which he was sentenced to 71 months in prison. In 2010, Belin was convicted in Suffolk Superior Court of carrying a loaded firearm without a license, for which he was sentenced to 18 months in state prison and two years of probation. The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Stoughton Police Chief Donna M. McNamara made the announcement today. Assistant U.S. Attorneys John T. Dawley and Benjamin A. Tolkoff of the Organized Crime & Gang Unit are prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: DOJ and Vancouver, Washington, hospital resolve allegations of Americans with Disabilities Act (ADA) violations

component: USAO - Washington, Western

body_text: Seattle – PeaceHealth Southwest Medical Center in Vancouver, Washington has resolved allegations it violated the Americans with Disabilities Act by failing to provide a sign language interpreter to a patient who is deaf. The settlement, with the U.S. Department of Justice, requires the medical facility to improve its services, staff training, and communications with the public. The patient will be paid $75,000 for the discrimination she suffered while hospitalized March 20-23, 2020. “Ensuring compliance with the American with Disabilities Act is a top priority of our Civil Rights Unit – and that is critically important in the health care setting,” said U.S. Attorney Tessa Gorman. “When facing hospitalization and treatment, every patient deserves clear communication about their course of treatment. This settlement seeks to ensure that effective communication for each patient.” According to the settlement agreement, PeaceHealth violated the ADA by failing to have a sign language interpreter for the patient and that failure caused significant emotional distress as the patient was unable to understand the reason for her hospitalization or the suggested course of treatment. Other patients who needed sign language interpreters or video remote interpreting services, were also denied appropriate communication aids. Under the terms of the settlement, hospital staff will now assess a patient’s communications needs at the initial visit. They will also assess the needs of the patient’s companion. As part of their scheduling obligation, staff will make sure appropriate language services are available for effective communication. The medical center will designate members of staff as the communications services resources. At least one of these staff members will be available at all times the hospital is operating. This person is responsible for knowing where the assistive devices are located and how to arrange for qualified sign language interpreters. The hospital will keep a log of all requests for qualified interpreters or video remote interpretation. The hospital will keep records of all complaints about services provided to patients who are deaf, deaf-blind, or hard of hearing. The hospital may not charge additional fees for the interpretation services. Under the terms of the agreement, PeaceHealth Southwest will maintain relationships with five different interpreter services. The hospital will have access to Video Remote Interpreting (VRI) but will not use it if it does not provide effective communication for the patient. PeaceHealth agrees to post information about auxiliary aids and services in the facility and on its website. The medical facility also commits to training personnel about the communications resource program and services. Every six months PeaceHealth Southwest will provide a compliance report to the U.S. Attorney’s Office and will report any complaint regarding failure to provide effective communication within 45 days. In addition to the $75,000 paid to the complaint in this case, the medical center will pay DOJ $10,000 for violating the ADA. This matter was referred to the U.S. Attorney’s Office by the Northwest Justice Project (NJP). The matter was investigated, and the settlement was negotiated, by Assistant United States Attorney Susan Kas, who serves as the Civil Rights Coordinator for the U.S. Attorney’s Office, Western District of Washington.


title: Assaults on woman send Lame Deer man to prison for more than three years

component: Federal Bureau of Investigation (FBI)

body_text: BILLINGS — A Lame Deer man who admitted assaulting a dating partner and using a baton to strike the victim on the Northern Cheyenne Indian Reservation was sentenced today to three years and six months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said. The defendant, Curtis Leo Crazymule, 45, pleaded guilty in October 2023 to assault resulting in substantial bodily injury to a dating partner, assault of a dating partner by strangulation and assault with a dangerous weapon. U.S. District Judge Susan P. Watters presided. The government alleged in court documents that Crazymule and the victim, identified as Jane Doe, were at times were in a romantic relationship in 2022. In December 2022, Crazymule, who was drunk, straddled and assaulted the victim as they sat in a parked car. Crazymule used his forearm to strangle the victim. Crazymule was mad because the victim had tried to take the keys from him. Earlier in the year, in January 2022, Crazymule assaulted Jane Doe with a baton, described as a collapsible police baton, by striking her on the head. Assistant U.S. Attorney Lori Harper Suek prosecuted the case. The FBI and Bureau of Indian Affairs conducted the investigation. XXX


title: Eleven Individuals Indicted and Arrested for Drug Trafficking From Puerto Rico to the Continental United States

component: USAO - Puerto Rico

body_text: SAN JUAN, Puerto Rico – On February 14, 2024, a federal grand jury returned a nine-count indictment charging 11 individuals for drug trafficking, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The United States Postal Inspection Service, U.S. Postal Service Office of Inspector General, and the Puerto Rico Police Bureau are investigating the case. According to court documents, from April of 2019 and continuing up to and until September of 2022, the following defendants knowingly and intentionally, combined, conspired, and agreed with others, to knowingly and intentionally possess with intent to distribute and distribute cocaine using the U.S. Postal Service. [1] Emmanuel A. Fernández García [2] Edwin Orlando Carrasquillo [3] Efraín Guillermo Vila Serrano [4] Marymar Marrero Torres [5] Pedro Benjamín Marrero Torres [6] Arajulia Ramírez Del Valle [7] Sebastián Restrepo Cano [8] Luis Dejesus III [9] Gadelys Rosario Alvarado [10] Tyrone José Beltrán Lugo [11] David Custodio Hernández The defendants are facing a narcotics forfeiture allegation of $6,930,000. “Drug trafficking poses a significant threat to public health and safety,” said United States Attorney Muldrow. “This criminal organization distributed cocaine into communities across the East Coast in various ways, including the mail. The U.S. Attorney’s Office and its partners will continue to pursue drug traffickers and to seek justice for our communities.” “The arrests made today in Massachusetts, Florida, and Puerto Rico highlight the broad reach of the U.S. Postal Inspection Service when it comes to dismantling criminal drug trafficking organizations that pose a serious public safety threat,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Postal inspectors aggressively seek to rid the mail of illicit narcotics, preserve the integrity of the mail and, most importantly, provide a safe environment for postal employees and Postal Service customers. I would like to commend the hard work and countless hours put forth by all the law enforcement agencies on this case. Together we will prevent these dangerous and addictive drugs from reaching our streets and ensure the perpetrators are brought to justice.” The defendants arrested in Puerto Rico are scheduled for their initial court appearance today before U.S. Magistrate Judge Héctor Ramos-Vega of the U.S. District Court for the District of Puerto Rico. If convicted, the defendants face a mandatory minimum penalty of 10 years in prison for the conspiracy charged in count one of the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant U.S. Attorney R. Vance Eaton is prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Felon with Multiple Domestic Violence Convictions on His Record Sentenced to 15 Years in Federal Prison for Possessing Ammunition

component: USAO - California, Central

body_text: LOS ANGELES – A San Bernardino man with multiple felony domestic violence convictions has been sentenced to 180 months in federal prison for unlawfully possessing ammunition – the fired cartridge cases of which law enforcement found in the man’s shared family home after he had fired them during a domestic dispute, the Justice Department announced today. Frank Escobar, Jr., 35, was sentenced on Wednesday afternoon by United States District Judge Hernán D. Vera. Escobar pleaded guilty in November 2023 to one count of being a felon in possession of ammunition. He has been in federal custody since August 2023. In May 2023, Escobar knowingly possessed ammunition, specifically, three rounds of .25-caliber ammunition and four rounds of 12-gauge shotgun ammunition. Law enforcement found two of the .25-caliber rounds in the form of fired cartridge cases in Escobar’s shared family residence after he had fired the bullets during a domestic dispute. He was not permitted to possess the firearm and ammunition because of his criminal history, which includes four convictions for felony domestic violence. “Firearm restrictions are particularly impactful and necessary for offenders like [Escobar] with a history of domestic violence,” prosecutors argued in a sentencing memorandum. “Possession of a firearm by an abuser significantly increases the risk of death for a victim of domestic violence…While in possession of a firearm that he was legally prohibited from possessing, [Escobar] fired the gun multiple times in close proximity to his family members inside their shared residence.” The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the San Bernardino Police Department investigated this matter. Assistant United States Attorney Kelsey A. Stimson of the General Crimes Section prosecuted this case.


title: Member of Nisqually Tribe indicted for three counts of sexual abuse of a minor

body_text: Tacoma – A 49-year-old member of the Nisqually Indian Tribe was indicted by the grand jury this week for three counts of aggravated sexual abuse of a minor, announced U.S. Attorney Tessa M. Gorman. Marcus Jerome Douglas was arrested on a criminal complaint on January 31, 2024. Douglas remains detained at the Federal Detention Center at SeaTac. He will be arraigned on the indictment next week. According to records filed in the case, three victims have disclosed sexual abuse by Douglas at times when he had access to them. Some of the victims report long- time abuse from a very young age. Because Douglas is a tribal member and the abuse occurred in residences on tribal land, the case is being investigated by the FBI and the jurisdiction is in federal court. Sexual abuse of a minor is punishable by a mandatory minimum 30 years in prison to life in prison. The FBI investigation is ongoing, and investigators are interested in speaking with any additional victims or witnesses who should call 1-800-CALL-FBI. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The case is being investigated by the FBI with assistance from the Olympia Police Department. The case is being prosecuted by Assistant United States Attorneys Cecelia Gregson and Kristine Foerster. douglas_marcus_indictment.pdf


title: U.S. Attorney’s Office Collects $2,344,556.85 in Civil and Criminal Actions in Fiscal Year 2023

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – United States Attorney Will Thompson announced today that the U.S. Attorney’s Office for the Southern District of West Virginia collected $2,344,556.85 in criminal and civil actions in Fiscal Year 2023. Of this amount, $2,231,245.48 was collected in criminal actions and $113,311.37 was collected in civil actions. “This money is owed from criminal and civil penalties as well as court-ordered restitution and ultimately benefits crime victims and taxpayers,” Thompson said. The $2,231,245.48 collected in criminal actions includes a $75,000 fine and $280,088 in restitution paid by Christopher Daniels, 54, of Parkersburg, who was also sentenced to one year and one day in prison on December 15, 2022, after pleading guilty to for filing a false federal income tax return. The criminal collections total also includes $382,449.47 in restitution paid by Dhanraj Singh, 63, of Bowie, Maryland, who was also sentenced to two years and three months in prison on December 31, 2022, after pleading guilty to interstate transportation of stolen property. The criminal collections total also includes a $25,000 fine and $175,000 in restitution paid by Michael James Peters, 43, of Concord, North Carolina, who was also sentenced to one year in prison on February 2, 2023, after pleading guilty to making a false statement to a representative of the United States Department of Agriculture. The $175,000 is part of the $1,375,000 in court-ordered restitution owed by Peters. The U.S. Attorneys’ Offices, along with the U.S. Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Finally, the U.S. Attorney’s Office for the Southern District of West Virginia, working with partner agencies and divisions, collected $1,073,483 in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. ###


title: Two sent to prison for stealing nearly $3M in IRS refunds

component: USAO - Texas, Southern

body_text: HOUSTON – Two men have been sentenced for their roles in a scheme to cash stolen tax checks, announced U.S. Attorney Alamdar S. Hamdani. Benjamin Thomas, 38, Richmond, and Kuljinder Singh Hunjan, 38, Spring Valley, New York, pleaded guilty and Oct. 2 and Feb. 16, 2023, respectively. U.S. District Chief Judge Randy Crane has now imposed a 90-month-term of imprisonment for Thomas, while Hunjan received 42 months. Both must also serve three years of supervised release following their sentences and were ordered to pay restitution in the amount of $4,483,987.89. In handing down the prison terms, Judge Crane noted they engaged in a complex and sophisticated fraud scheme. In approximately January 2022, authorities learned of a Houston couple who never received their $2,932,446.84 IRS refund check they were expecting in the mail. The investigation revealed Hunjan and Whitley Rachelle Carter had used fake IDs with the victims’ names, dates of birth and Social Security numbers to open accounts at Regions Bank on various dates in January 2022 On Jan. 18, 2022, Hunjan and Carter deposited the victims’ refund check into the fraudulent bank account. Authorities were able to identify Hunjan and Carter from bank surveillance. Hunjan’s fingerprints were also found on the check. The investigation linked Carter to Hunjan and Thomas by phone calls and cash app transactions. On April 13, 2022, authorities arrested Thomas as he was driving a stolen Lamborghini. At that time, he possessed two debit cards for fraudulently-created accounts that were used to receive the proceeds of the aforementioned refund check. These accounts were opened with stolen identities of others to launder the proceeds of the nearly $3 million check. Thomas also had an ATM receipt showing a withdrawal of $800 from the Regions bank account that received the check. Toll records from the cellphone Thomas possessed at the time of his arrest indicate that he contacted Hunjan numerous times during the course of the conspiracy. Carter, 33, Houston, is set for sentencing May 21. At that time, she faces up to 30 years in federal prison as well as a possible $1 million maximum fine. Hunjan and Thomas were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. IRS Criminal Investigation, Treasury Inspector General for Tax Administration, Houston Police Department, FBI and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.


title: Two Bronx Men Charged With Distributing Narcotics Out Of Bronx Residence Connected To Multiple Fatal And Non-Fatal Drug Overdoses

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the filing of a criminal Complaint in Manhattan federal court charging RUBINSKY PADILLA and LUIS ROSARIO, a/k/a “Gallo,” with conspiracy to distribute narcotics. ROSARIO was arrested yesterday afternoon in the Hunts Point neighborhood of the Bronx. PADILLA is currently at large. ROSARIO will be presented today before U.S. Magistrate Judge Valerie Figueredo. U.S. Attorney Damian Williams said: “Yesterday afternoon, law enforcement conducted a Court-authorized search of a residence in the Bronx at 755 Coster Street, a home that the defendants have allegedly used for years to sell lethal narcotics. The defendants’ alleged actions have plagued the neighborhood and littered the street with drugs — endangering residents, including children. As alleged, there have been 12 fatal overdoses and 30 non-fatal overdoses within a three-block radius of this residence in the last five years. The most recent suspected fatal overdose was less than a month ago and occurred inside the house. If you or anyone you know has bought drugs from 755 Coster Street, they are considered extremely hazardous, potentially fatal, and should not be ingested under any circumstance.” NYPD Commissioner Edward A. Caban said: “These charges underscore the gravity of the illegal drug crisis plaguing New York City and our nation. For far too long, the Bronx house from which these two men allegedly distributed their poison was a locus of tragedy that diminished quality of life for everyone in the neighborhood. I commend our NYPD narcotics investigators for their perseverance in shutting down this alleged drug operation, and I thank everyone from the Office of the U.S. Attorney for the Southern District of New York for their partnership in prosecuting this important case.” According to the allegations in the Complaint charging PADILLA and ROSARIO: [1] From at least in or about October 2022 through on or about February 15, 2024, a group of narcotics traffickers, including PADILLA, ROSARIO, and others, illegally ran an extensive narcotics distribution operation out of a house located at the street address 755 Coster Street in the Bronx, New York. Over the course of the investigation, the NYPD has established that the group is responsible for the sale of heroin, fentanyl, para-fluorofentanyl (a fentanyl analogue), and cocaine, among other drugs, at the house. Residents in the neighborhood have called 911 on multiple occasions to report continuous narcotics activity and use at the house and drug paraphernalia found outside on the sidewalk. The group continued to operate despite repeated law enforcement actions, including multiple judicially authorized searches of the house from approximately 2015 through 2024. Each search resulted in the seizure of narcotics, including, for example, heroin, fentanyl, cocaine, and cocaine base. PADILLA and ROSARIO were both arrested in April 2023 after one such search of the house resulted in the seizure of a substantial quantity of narcotics, but both continued operating the narcotics distribution operation uninterrupted from the same location. Between approximately in or about 2018 through 2024, there have been at least 12 fatal overdoses and 30 non-fatal overdoses reported within a three-block radius of the house at 755 Coster Street. Most recently, on or about January 19, 2024, law enforcement responded to a 911 call reporting an unresponsive male in need of medical assistance at the house located at 755 Coster Street and found an individual who appeared to have died hours earlier of an apparent overdose. On or about February 14, 2024, law enforcement searched 755 Coster Street and found ROSARIO inside. As pictured below, during their search, law enforcement found, among other things, quantities of suspected cocaine base and heroin, as well as narcotics paraphernalia, including materials designed for use in packing narcotics for distribution. Any member of the public who has overdosed, or has knowledge of anyone who has overdosed, as a result from narcotics purchased at 755 Coster Street should anonymously call 866-874-8900. * * * RUBINSKY PADILLA, 48, and LUIS ROSARIO, 67, both of the Bronx, New York, are charged with one count of conspiracy to distribute narcotics, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The statutory minimum and maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. Mr. Williams praised the outstanding investigative work of the NYPD’s Narcotics Bureau Bronx Major Case Unit as well as the Bronx County District Attorney’s Office. The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Ashley C. Nicolas and Lisa Daniels are in charge of the prosecution. The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Federal Government Enters Agreement with Ashland Dermatology Practice to Ensure Effective Communication with Deaf and Hard of Hearing Patients

component: USAO - Kentucky, Eastern

body_text: LEXINGTON, Ky. – The United States has reached an agreement, under the Americans with Disabilities Act (ADA), with Jack F. Ditty, M.D., P.S.C., a dermatology practice in Ashland, Kentucky, addressing effective communication with deaf and hard of hearing patients. The settlement resolves a complaint filed by a patient who alleged that she was not provided an American Sign Language (ASL) interpreter during an initial appointment. Through an investigation, the United States determined that the dermatology practice failed to take necessary steps to ensure effective communication with deaf or hard of hearing patients, by not providing interpreters or other auxiliary aids and services to patients, who staff knew were deaf or hard of hearing, and encouraging those patients to bring someone with them to facilitate communication. “Adequate communication with your health care provider is absolutely essential to receiving the medical care you need,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “This foundational access to communication is critically important and required by law. This settlement reflects our commitment to ensuring deaf and hard-of-hearing patients can properly participate in their important health care decisions, through essential access to adequate communication services.” Under the terms of the agreement, the practice will advise patients and companions of their right to auxiliary aids and services to ensure effective communication, including a live qualified sign language interpreter, whether through video or on-site. The practice will maintain a list of qualified interpreters and establish internal procedures for ordering interpreting services. The practices will also modify its policies and practices to comply with the ADA, train its staff on the ADA and the terms of the agreement, and will periodically submit reports about its compliance with the agreement. This matter was handled by Assistant U.S. Attorney Carrie Pond, in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division. For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-edky/civil-rights. ADA complaints may be emailed to usakye.civilrights@usdoj.gov or by contacting the U.S. Attorney's Office’s Civil Rights Hotline at (859) 685-4880. More information about the ADA is available at the Justice Department’s toll-free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov. — END —


title: Huffman resident sent to prison for images of children being sexually assaulted

body_text: HOUSTON – A 65-year-old man has been sentenced for receipt of child pornography, announced U.S. Attorney Alamdar S. Hamdani. Steve Howie Nelson pleaded guilty Sept. 29, 2023. U.S. District Judge Keith P. Ellison has now ordered Nelson to serve 180 months in federal prison. He will also serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Nelson will also be ordered to register as a sex offender. The investigation revealed Nelson had been viewing child pornography in a peer-to-peer platform. On Feb. 22, 2019, authorities executed a search warrant at his Huffman residence, at which time they found more than 25 images of child pornography on his laptop. These images depicted adult males sexually assaulting minor females from 10 to 14 years of age. Nelson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. FBI conducted the investigation. Assistant U.S. Attorneys Kimberly Leo and Jay Hileman prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources tab on that page .


title: Former New York Construction and Remodeling Business Owner Sentenced to Two Years for Filing False Tax Return

component: Tax Division

body_text: A South Carolina man was sentenced today to two years in prison for filing a false federal income tax return. According to court documents and statements made in court, Timothy Blackman, of Daniel Island, was a self-employed contractor in Auburn, New York, providing construction and remodeling services. From 2007 through 2010, Blackman did not file income tax returns with the IRS or pay income taxes. After learning of a criminal investigation concerning his income taxes in June 2010, Blackman late-filed a false 2007 personal tax return, which underreported his construction and remodeling business’s total gross receipts and income. In addition to the term of imprisonment, U.S. District Court Judge David Hurd for the Northern District of New York ordered Blackman to serve one year of supervised release. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carla B. Freedman for the Northern District of New York made the announcement. IRS Criminal Investigation investigated the case. Acting Section Chief John N. Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Michael F. Perry for the Northern District of New York prosecuted the case.


title: Readout of Deputy Attorney General Lisa Monaco’s Trip to London

component: Office of the Deputy Attorney General

body_text: Deputy Attorney General (AG) Lisa Monaco traveled to London this week to highlight the continued collaboration of the United States and United Kingdom to combat persistent threats to global security, including emerging challenges like the theft and misuse of disruptive technologies, especially artificial intelligence (AI). In meetings with her national security and law enforcement counterparts across the U.K.’s Cabinet Office, Home Office, MI5, GCHQ, Metropolitan Police Department, and National Crime Agency, the Deputy AG emphasized the need for sustained partnership between the U.S. and U.K. against shared threats from malign state actors, especially nation-states looking to sow chaos and further their autocratic agendas amid global elections this year. Together with Permanent Secretary Matthew Rycroft, the Deputy AG convened the second meeting of their ongoing, strategic dialogue , combining the expertise and capabilities of the Home Office and the Justice Department to identify and address emerging threats. They discussed ways both countries can continue to protect against transnational repression, cybercrime — including ransomware and fraud — and terrorism, especially in the wake of the October 7th attacks. The Deputy AG delivered remarks at Oxford University on the promise and peril of AI. She shared the principles guiding the Justice Department as it harnesses the benefits of AI to fulfill its mission — and also outlined the Department’s approach to mitigating the risks posed by its misuse. The Deputy AG announced the launch of “Justice AI,” a series of convenings the Department will hold across civil society, academia, science, and industry to draw on varied perspectives about integrating AI. In her speech, she stressed how AI is already lowering the barriers to entry for criminals and emboldening our adversaries. She announced that going forward, where appropriate, federal prosecutors should seek stiffer sentences for offenses made significantly more dangerous by the misuse of AI — and that if existing sentencing enhancements cannot adequately address the harms caused by misuse of AI, the Department will seek reforms to them. The Deputy AG also highlighted the work of the Disruptive Technology Strike Force , which she launched last year to strike back against adversaries trying to siphon off America’s most advanced technology for use against us. Calling AI the “ultimate disruptive technology,” the Deputy AG emphasized that going forward, that strike force will prioritize AI in its enforcement actions. While in London, the Deputy AG visited the American Embassy for a briefing with U.S. officials on their work and to thank them for their dedicated public service. Ambassador Jane Hartley hosted a reception in honor of the Deputy AG’s visit and to celebrate the continued collaboration between both countries. The Deputy AG departed London for Munich, where she will participate in the Munich Security Conference and the Munich Cyber Security Conference. Photo credit: U.S. Embassy London. Photo credit: The Oxford Martin School.


title: Louisville Man Sentenced to Over 5 Years in Federal Prison for Illegally Possessing a Firearm and Money Laundering

component: USAO - Kentucky, Western

body_text: Louisville, KY – A Louisville man was sentenced this week to 5 years and 3 months in federal prison for possessing a firearm after having previously been convicted of a felony offense and money laundering. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Acting Special Agent in Charles Birch of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement. According to court documents, Steven Meredith, 46, was sentenced to 5 years and 3 months in prison, followed by 3 years of supervised release, for possessing a firearm after having previously been convicted of a felony offense and for laundering monetary instruments by transferring $40,000 in checks and cash to purchase real property located on Woodruff Avenue in Louisville, knowing the funds involved the proceeds of dealing in controlled substances. Meredith was also ordered to pay a fine of $20,000. Meredith was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses: On December 19, 1996, in Jefferson Circuit Court, Meredith was convicted of burglary in the second degree and receiving stolen property over $300. On August 25, 2010, in Jefferson Circuit Court, Meredith was convicted of complicity to receiving stolen property over $1000, trafficking in a controlled substance in the first degree and possession of a handgun by a convicted felon. There is no parole in the federal system. The case was investigated by the DEA and the IRS-CI, with assistance from the FBI Laboratory and IRS-CI Center for Science and Design. Assistant U.S. Attorneys Robert Bonar and Amy Sullivan prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF. ###


title: Convicted Felon Sentenced to 12.5 Years in Federal Prison

component: Drug Enforcement Administration (DEA)

body_text: Dallas woman sentenced to 12.5 years in federal prison for drug and firearm charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Danette Ozuna, 48, was indicted in October 2022 and she pleaded guilty in September 2023 to one count each of possession of a controlled substance with intent to distribute and possession of a firearm by a convicted felon. Ms. Ozuna was sentenced Wednesday by U.S. District Judge Brantley Starr. According to court documents, in March 2022 a confidential informant made multiple purchases of methamphetamine from Ms. Ozuna at the Star Motel located in Dallas. Following those purchases, in May 2022 law enforcement executed a search warrant at the hotel and located Ms. Ozuna in the hotel room. While she was being taken into custody, Ms. Ozuna told officers there was a handgun under the pillow of the bed. During the search, officers located a handgun, drug ledger, bank bag containing $7,006 in cash and a red bag containing methamphetamine. Additional methamphetamine was located in the nightstand drawer. At the sentencing hearing, prosecutors discussed a sign in the hotel room that listed rules for drug purchases: Please Read First! 1) I don’t want to do no fronts, and if I do the price goes up! 2) You only get a price break when 4 and up 3) If you Owe me money you will not get more until Debt is cleared. 4) price went up on me So goes up for you too! 4 - 650 1 - 175.00 ½ - 125.00 7 - 80.00 8 Ball - 50 Teen - 30 Anything above that 150 piece 5) what you have $ for is what you will get - ne extra, No fronts I have too much money out and I have my own Bills to pay! If you ask after Reading this you will Be directed back to read it Over again! No exceptions! Thank you! Ms. Ozuna was convicted on April 2, 2014 of a crime in the 86th Judicial District Court of Kaufman County and was sentenced to 10 years imprisonment. That conviction made it a federal crime for her to possess a firearm. The Drug Enforcement Administration, Kaufman County Sheriff’s Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney George Leal prosecuted the case.


title: Former Illinois Department of Agriculture Investigator Sentenced to a Year in Prison for Obstructing Justice

body_text: CHICAGO — A former investigator for the Illinois Department of Agriculture has been sentenced to a year in federal prison for groping several women while on duty and then lying under oath about it during an official proceeding. JOSE GUILLEN inappropriately touched and groped female operators of animal care facilities that he inspected for the State of Illinois. In his official capacity as a state investigator, Guillen had the power to influence whether an animal care facility received a license to operate and whether it could continue in operation after receiving the license. When one of the victims filed a civil lawsuit against Guillen, he repeatedly lied under oath during a deposition in the case. In the deposition, Guillen stated that he touched the victim’s buttocks by accident. In a plea agreement with the U.S. Attorney’s Office to resolve the federal criminal case, Guillen admitted that he “intentionally touched [the victim’s] buttocks for purposes of his own sexual gratification.” Guillen also admitted in the plea agreement that he lied in his deposition when he denied having inappropriately touched four other animal care facility operators. Guillen, 43, of Melrose Park, Ill., pleaded guilty last year to obstruction of justice. U.S. District Judge Joan Humphrey Lefkow imposed the year-and-a-day sentence during a hearing Wednesday in federal court in Chicago. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. “None of these women consented to the defendant’s lecherous advances,” Assistant U.S. Attorneys Amarjeet S. Bhachu and Diane MacArthur argued in the government’s sentencing memorandum. “It was only when confronted by a series of accusers who were brave enough to step forward to put a stop to his misconduct that the defendant capitulated and accepted responsibility for his serial wrongdoing by pleading guilty.”


title: Bristol Man Sentenced to Prison for Fraud and Tax Offenses

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHN HORVATH, 73, of Bristol, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 34 months of imprisonment, followed by two years of supervised release, for fraud and tax offenses. According to court documents and statements made in court, Horvath was licensed by the State of Connecticut as a resident insurance producer, which authorized him to sell various forms of insurance. In that capacity, he sold annuity contracts issued by Allianz Life Insurance Company of North America (“Allianz”) to clients. Beginning no later than July 2015 and continuing until April 2021, Horvath defrauded several clients by advising them that they could achieve better rates of return through alternative investments, rather than their existing annuity contracts, and that he could broker and manage those investments for them. Victim-investors gave Horvath investment funds with the expectation he would manage the funds for them. Instead, Horvath commingled the victim-investors’ funds with his own and used the pooled money to pay personal expenses and repay earlier victim-investors. Through this scheme, Horvath defrauded at least eight victims out of a total of approximately $1,189,200. One victim, a widow who family members described as suffering from increasing memory impairment, lost nearly $900,000 through this scheme. In addition, Horvath failed to pay income taxes on his substantial income from the scheme, resulting in a loss to the government of $267,739 for the 2015 through 2020 tax years. Judge Shea ordered Horvath to pay full restitution. On July 26, 2023, Horvath pleaded guilty to one count of wire fraud and one count of tax evasion. Horvath, who is released on a $50,000 bond, is required to report to prison on April 12. This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Conor M. Reardon. The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311). For more information, please visit https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope .


title: Encino Tax Prep Company Owner Pleads Guilty to Helping Client File a False Tax Return and Admits Causing Tax Loss of More Than $400,000

body_text: LOS ANGELES – The owner of an Encino tax preparation company pleaded guilty today to helping a client file a false individual tax return that deliberately underreported the client’s income, admitting that this and other false tax returns for the same the client caused a loss to the IRS of more than $400,000. Bijan Kohanzad, 62, of Calabasas, pleaded guilty to one count of aiding and assisting the filing of a false tax return. According to his plea agreement, beginning in mid-2015 and lasting until May 2017, Kohanzad helped and counseled a client to reduce the client’s taxable income. He did so illegally by falsely increasing the client’s business expenses reported on the client’s federal tax returns. On the client’s corporate tax return for the year 2015, the client’s company claimed $150,000 in advertising expenses, a claim that Kohanzad knew was false. This false expense claim reduced the company’s ordinary business income from more than $326,000 to over $176,000, and fraudulently reduced the income the client would then report on his individual tax return. In September 2016, Kohanzad also knowingly and willfully helped and advised the same client to file a false individual income tax return for the year 2015. On this return, the client failed to report the approximately $150,000 in concealed income that the client had received through his company. As a result, the client’s personal tax return falsely reported a taxable income of $127,878, when the actual amount exceeded $278,000. For the tax year 2016, Kohanzad admitted that he again prepared and filed corporate and individual income tax returns for the same client that he knew were false. As with the false 2015 tax returns, the 2016 corporate tax return falsely claimed $886,325 in business expenses, which reduced the company’s reported ordinary business income, and fraudulently reduced the client’s taxable income as reported on his individual tax return from more than $1.3 million to less than $450,000. The total loss Kohanzad caused to the IRS for these two tax years was approximately $401,436. Kohanzad admitted in his plea agreement that he acted willfully and that he voluntarily and intentionally violated federal law. United States District Judge André Birotte Jr. scheduled a July 12 sentencing hearing, at which time Kohanzad will face a statutory maximum sentence of three years in federal prison. Kohanzad is free on $100,000 bond. IRS Criminal Investigation is investigating this matter. Assistant United States Attorney Monica E. Tait of the Major Frauds Section is prosecuting this case.


title: Michigan Man Arrested in West Virginia in Connection to Three Bank Robberies

component: USAO - Michigan, Eastern

body_text: DETROIT – A fugitive wanted in connection with bank robberies in Hamtramck, Harper Woods, and Hazel Park appeared in federal court this afternoon. Glenn Pack, 23, was arrested by the FBI on January 25, 2024, in West Virginia, and was returned to Michigan earlier this week to face charges, United States Attorney Dawn N. Ison announced. Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. According to the criminal complaint, Pack is alleged to have robbed a PNC Bank on Joseph Campau Street in Hamtramck on December 19, 2023, a Chase Bank on Vernier Road in Harper Woods on January 2, 2024, and a PNC Bank on S. Chrysler Drive in Hazel Park on January 12, 2024. In all three robberies, Pack posed as a customer and presented the tellers with a note demanding money and stating that he was robbing the bank. Pack is alleged to have made off with over $10,000. If convicted, Pack faces a maximum penalty of 20 years in prison for bank robbery. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. “We are grateful for the swift action by the Hamtramck, Harper Woods, and Hazel Park Police Departments in coordinating with the FBI to identify and locate the defendant,” said Cheyvoryea Gibson, the Special Agent in Charge of the FBI in Michigan. “Each law enforcement partner brought a unique skill set which contributed to the successful apprehension by FBI Pittsburgh. The FBI remains committed to investigating thieves and protecting the public from this type of criminal activity.” A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. In addition to the Detroit FBI, this case is being investigated by the Hazel Park Police Department, the Hamtramck Police Department, and Harper Woods Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Sarah Alsaden.


title: Pender County Man Sentenced to 30 Years in Prison for Producing Child Sexual Abuse Material

component: USAO - North Carolina, Eastern

body_text: WILMINGTON, N.C. – A Rocky Point, N.C. man was sentenced today to the statutory maximum 360 months in prison, and 10 years of supervised release, for the production of child pornography between April and October of 2020. On April 25, 2023, Thomas Frank Andrews, Jr., 39, pled guilty to the charges. Andrews was also ordered to pay a total of $36,000 in restitution to multiple victims and will be required to register as a sex offender. According to court documents and other information presented in court, in February 2020, Andrews traveled to Vance County to have sex with a minor female he had met and groomed through social media. The minor victim reported asking Andrews to stop but he did not, and a family member caught Andrews in bed with the minor. The Vance County Sheriff’s Office (VCSO) investigated, and Andrews was charged with Second Degree Forcible Rape. During the investigation, the VCSO received reports that Andrews, a Pender County resident, was also sexually assaulting another minor female victim who was only 13 years-old at the time. On October 22, 2020, the Pender County Sheriff’s Office (PCSO) arrested Andrews on the outstanding Vance County warrant and seized his phone. A search warrant found child sexual abuse material (CSAM) on the phone. The PCSO then obtained and executed search warrants for Andrews’ home, vehicle, other electronic devices, and social media accounts. The subsequent investigation, conducted by the PCSO and the United States Secret Service (USSS), confirmed that Andrews had groomed the 13-year-old victim, engaged in a sexual relationship with her, and also had her create sexually explicit images and videos of herself at his direction. The investigation also found that Andrews sexually assaulted yet another minor female victim, who was just 11 years-old at the time of his arrest. Later, investigators were able to confirm that one of the CSAM videos found on Andrews’ devices depicted the same minor victim, but was recorded over a year ago, when she was only 10 years-old. A review of the electronic evidence revealed that Andrews had engaged in overtly sexual online communications with numerous other young females, including minors. Several explicitly disclosed their age / minor status, while Andrews often lied about his own age, claiming he was 18. Andrews regularly attempted to convince the young females to meet him for sex or send him sexually explicit images or videos, and some did. Additionally, the forensic review of Andrews’ electronic devices found a voluminous collection of thousands of CSAM images and videos, as well as search history which confirmed that Andrews actively sought out CSAM. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Pender County Sheriff’s Office, the Vance County Sheriff’s Office, and the United States Secret Service investigated the case; the North Carolina 6th and 11th Prosecutorial District Attorney’s Offices prosecuted the state cases; and Assistant U.S. Attorney Bryan M. Stephany prosecuted the federal case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. 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. 7:22-cr-00112-M.


title: Bloods Gang Member Convicted At Trial For Violent And Extortionate Takeover Of The New York City Fire Mitigation Industry

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction of JATIEK SMITH, a/k/a “Tiek,” of racketeering and extortion conspiracies. The verdict was issued yesterday following a two-week bench trial before U.S. District Judge Jed S. Rakoff in December 2023. U.S. Attorney Damian Williams said: “Jatiek Smith’s audacious takeover of the New York City fire mitigation industry with the help of his gang associates presented a new form of organized criminal activity in our community, but the experienced career prosecutors of this Office and our law enforcement partners stand ready to combat violent and organized crime, no matter how unconventional. We will not stand for gangs or any criminal groups who try to corrupt our communities and threaten our safety. Those who do should expect to find themselves in handcuffs.” According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial: The fire restoration industry refers to the businesses that repair properties that have suffered damage from fires or exposures to fires. Within this industry, fire restoration companies (sometimes referred to as emergency mitigation services (“EMS”) companies) provide emergency mitigation services, demolition, and construction services to properties that have suffered such damages. First Response Cleaning Corp. (“First Response”) was one such EMS company. In 2019, JATIEK SMITH joined First Response and quickly assumed control over its operations. SMITH, a member of the Bloods, a violent street gang, recruited other gang members and associates to join him at First Response. As the leader of this crew, SMITH and his associates used violence, threats of violence, and extortion to terrorize and dominate the fire restoration industry in New York City. SMITH asserted control over the industry by first ousting First Response’s main competitor through violence, threats, and extortion. Once SMITH and his crew had established control over the industry, they imposed rules that allocated a preferential share of fires to First Response. These rules were backed by threats — including threats to kill children — and violence. Industry participants, including senior citizens, who solicited fires in violation of SMITH’s rules were assaulted in broad daylight. Through threats of violence, actual violence, and economic fear, SMITH and his crew also extorted hundreds of thousands of dollars from other industry participants. SMITH maximized his profits from this scheme by concealing illegal conditions in properties and defrauding insurance companies. * * * JATIEK SMITH, 39, of Staten Island, New York, was convicted of racketeering conspiracy, which carries a maximum sentence of 20 years in prison, and extortion conspiracy, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentence of the defendant will be determined by a judge. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, Homeland Security Investigations, the New York City Police Department, and the Department of Investigation. This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Rushmi Bhaskaran, Marguerite B. Colson, Elizabeth A. Espinosa, and Adam S. Hobson, are in charge of the prosecution, with assistance from Paralegal Specialists Grayson Glogoff and Ananya Sankar.


title: Orlando Man Charged With Smuggling Firearms From The United States To Canada

component: USAO - Florida, Middle

body_text: Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Jonen Castillo (23, Orlando) with smuggling firearms from the United States to Canada. If convicted, Castillo faces a maximum penalty of 10 years in federal prison. The indictment also notifies Castillo that the United States intends to forfeit a Smith and Wesson firearm and four Glock firearms, which are alleged to be involved in the offense. According to the indictment, between June 10 and June 29, 2023, Castillo concealed and attempted to export firearms from the United States to Canada, contrary to United States law and regulation. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Diane Hu. 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: Former CEO And CFO Of Staffing Company Plead Guilty To Scheme To Defraud Bank And Investors That Caused $75 Million In Losses

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty pleas today of LOUIS LLUBERES and MOISES LLUBERES for their roles in orchestrating a years-long scheme to fraudulently boost the revenues of their staffing company (“Company-1”). The scheme allowed Company-1 to fraudulently obtain hundreds of millions of dollars on its line of credit from a U.S. bank (“Bank-1”) and supported the sale of Company-1 to a group of investors (the “Investor Group”) at a grossly inflated price. LOUIS LLUBERES and MOISES LLUBERES pled guilty today to conspiracy commit bank fraud and conspiracy to commit wire fraud before U.S. District Judge Vernon S. Broderick. U.S. Attorney Damian Williams said: “For many years, the defendants perpetrated a massive accounting fraud scheme in order to deceive their lenders and investors. In addition to causing more than $70 million in losses to victims, the defendants’ fraud jeopardized the livelihoods of hundreds of their employees. The defendants used accounting tricks, thinking their fraud would go undetected. They were wrong. Thanks to the tireless work of the FBI and the career prosecutors from my Office, the fraud was halted, the defendants’ assets were seized, and the defendants will face tough consequences for their criminal conduct.” According to the charging documents and other filings and statements made in court: LOUIS LLUBERES founded Company-1 in 1995 and served as Company-1’s Chief Executive Officer until March 2020. Company-1 served as a staffing company, supplying other businesses with temporary and permanent labor. MOISES LLUBERES, LOUIS LLUBERES’s brother, served as Company-1’s Chief Financial Officer. Company-1 had established a revolving line of credit with Bank-1. Under the terms of the line of credit, Company-1 could only borrow up to a designated ratio of Company-1’s eligible accounts receivable (the “Borrowing Base”). By its terms, invoices that had gone more than 90 or 120 days without being paid were no longer eligible to be considered as part of Company-1’s Borrowing Base. Officials at Company-1 were required to submit weekly financial reports to Bank-1, which included information on Company-1’s sales and collections, among other items, that allowed Bank-1 representatives to calculate Company-1’s Borrowing Base. Beginning in or about 2017, after losing significant business from major clients, the defendants began creating fraudulent invoices (the “Fictitious Receivables”). The Fictitious Receivables, which were recorded on Company-1’s books, created the appearance that Company-1 was engaged in more business and would be receiving more client payments than Company-1 did in reality. All told, the defendants created more than 2,000 such fraudulent invoices. By inflating Company-1’s Borrowing Base through the creation of Fictitious Receivables, Company-1 and the defendants were able to borrow more than $500 million from Bank-1 through a revolving line of credit. Had Company-1 not deceived Bank-1 with the Fictitious Receivables, Company-1 would not have been entitled to borrow these funds under the terms of the line of credit. In order to perpetuate their fraud, the defendants utilized two shell to disguise the loan proceeds before transferring those funds back to Company-1 and mischaracterizing the funds as client collection payments. Once the misappropriated funds had been returned to Company-1’s collections account, they were applied to aging accounts receivable, including the Fictitious Receivables. This allowed Company-1 to maintain its Borrowing Base and continue borrowing from Bank-1 while artificially inflating Company-1’s revenues. Beginning in or about 2017, the Investor Group initiated negotiations to acquire Company‑1, and the Investor Group executed an agreement to purchase Company-1 in May 2018. During those negotiations, LOUIS LLUBERES and MOISES LLUBERES actively concealed the fraud scheme, knowing that the fraud grossly inflated the value of Company-1. LOUIS LLUBERES was paid approximately $11.3 million on the day the Investor Group acquired Company-1. LOUIS LLUBERES also received an additional approximately $6.2 million based, in part, on fraudulent representations to the Investor Group and Company-1. In total, LOUIS LLUBERES made at least $17.5 million from the sale of Company-1, and he transferred approximately $716,000 of those funds to MOISES LLUBERES. * * * LOUIS LLUBERES, 61, of Windermere, Florida, and MOISES LLUBERES, 60, of Winter Grove, Florida, each pled guilty to one count of conspiracy to commit bank fraud, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. Both defendants agreed to pay restitution jointly and severally in the amount of $75,460,611. LOUIS LLUBERES was further ordered to forfeit $75,460,611, and MOISES LLUBERES was ordered to forfeit $1,063,342.45. In addition, the defendants were ordered to forfeit properties in the U.S. and abroad. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas W. Chiuchiolo, Daniel G. Nessim, Rushmi Bhaskaran, and Kevin Mead are in charge of the prosecution.


title: St. Albans Couple Plead Guilty to Federal Drug Crime

body_text: CHARLESTON, W.Va. – Today, Timothy A. Ward, 41, and his wife Sarah J. Ward, 40, both of St. Albans, pleaded guilty to aiding and abetting the distribution of methamphetamine. According to court documents and statements made in court, the Wards admitted that they distributed methamphetamine or aided and abetted each other to distribute methamphetamine to confidential informants on seven occasions in Kanawha County from October 2, 2023, through December 6, 2023. The Wards further admitted that they received money for several of these transactions, and for others received clothing that was shoplifted at their direction. The transactions included the sale of a half-ounce of methamphetamine to a confidential informant at a St. Albans bar on October 2, 2023. Timothy A. Ward also admitted that he sold a firearm at the couple’s St. Albans residence to a confidential informant who had purchased methamphetamine from him on prior occasions on December 7, 2023. Sarah J. Ward admitted that she arranged the sale of the firearm, and that she knew her husband was a convicted felon. Timothy A. Ward and Sarah J. Ward are scheduled to be sentenced on June 6, 2024, and each faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the St. Albans Police Department and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI). United States District Judge Irene C. Berger presided over the hearings. Assistant United States Attorney JC MacCallum is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-201. ###