title: Repeat offender imprisoned for having over 6,000 child pornography images

component: USAO - Texas, Southern

body_text: McALLEN, Texas – A 43-year-old McAllen resident has been sent back to prison for possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani. Rene Javier Sarmienta pleaded guilty March 20, 2023. U.S. District Judge Randy Crane has now ordered Sarmienta to serve 120 months in federal prison. In handing down the prison term, the court noted it was unfortunate Sarmienta relapsed and needs therapy. Sarmienta was further ordered to pay $3,000 in restitution to each of 12 victims and will serve five years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. The court also noted his previous conviction of possessing child pornography in 2002 and that he would be spending another significant amount of his life in prison. The investigation began when law enforcement discovered Sarmienta had been purchasing child pornography using a PayPal account. He also failed to report having several social media accounts to local authorities as required due to status as a sex offender. A forensic examination of Sarmienta’s cell phone revealed 6,300 images of child pornography. Several of the images included prepubescent minors and sadomasochistic conduct. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The FBI conducted the investigation with the assistance of the McAllen Police Department. Assistant U.S. Attorneys M. Alexis Garcia and Tyler Foster prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources link on that page.


title: Co-Conspirator Sentenced to 210 Months for His Role in Fentanyl and Methamphetamine Drug Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: TULSA, Okla. – Today, U.S. District Judge John D. Russell sentenced Gary Don McElroy, 55, for Drug Conspiracy. Judge Russell ordered McElroy to 210 months imprisonment, followed by five years of supervised release. According to court documents, in October 2023, Tulsa Police officers conducted a routine traffic stop due to an expired tag. McElroy was a passenger in the vehicle and the driver did not have a valid driver’s license or insurance. During the traffic stop, officers observed a large box containing small baggies of white crystal substance. While officers conducted their investigation, the driver sped off. After a short pursuit, McElroy and the driver were detained. Officers found drug paraphernalia and discovered the box was thrown out of the vehicle during the pursuit. It was later determined that both McElroy and the driver had more than 110 grams of fentanyl and more than 2,760 grams of methamphetamine. McElroy will remain in custody pending transfer to the U.S. Bureau of Prisons. The driver is McElroy’s cousin and was charged as a co-defendant. Shelly Annette McElroy, 53, of Tulsa, was sentenced last month for her involvement in the Drug Conspiracy. Judge Russell ordered McElroy to 292 months imprisonment, followed by five years of supervised release. Drug Enforcement Administration and the Tulsa Police Department investigated the case. Assistant U.S. Attorneys Adam McConney and Niko Boulieris prosecuted the case.


title: Hidalgo resident imprisoned for conspiring to import 13 kilograms of cocaine into United States

body_text: McALLEN, Texas - A 45-year-old man has been sentenced for his role in a conspiracy to import cocaine from Mexico, announced U.S. Attorney Alamdar S. Hamdani. Jesus Andres Tijerina pleaded guilty June 4. Chief U.S. District Judge Randy Crane has now ordered Tijerina to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding Tijerina’s supervisory role in the drug trafficking organization. On Jan. 21, 2020, Tijerina’s co-conspirator, Simon Salazar, arrived in a vehicle at the Anzalduas Port of Entry from Mexico. Law enforcement referred the vehicle for secondary inspection where they discovered 13 kilograms of cocaine concealed inside the vehicle and wrapped in bundles. Upon further investigation, authorities discovered Tijerina was providing instructions for where Salazar should go in Mexico and how to deliver the narcotics once in the United States. Salazar, 36, previously pleaded guilty and received 25 months in federal prison for his role in the conspiracy. Tijerina will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Cahal P. McColgan prosecuted the case.


title: Recidivist Pittsburgh Drug Trafficker Convicted at Trial on Cocaine and Fentanyl Charges

body_text: PITTSBURGH, Pa. - On September 23, 2024, a federal jury found Leon C. Ford guilty on two counts of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today. Ford, 58, of Pittsburgh, Pennsylvania, was tried before Senior United States District Judge Arthur J. Schwab in Pittsburgh. According to evidence presented at trial, Ford, who has a prior federal conviction for drug trafficking, conspired to distribute five kilograms or more of cocaine and 400 grams or more of fentanyl between March 2021 and September 2021. Ford also possessed with the intent to distribute a kilogram of fentanyl on September 16, 2021. Ford was the subject of a long-term Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, which included, among other evidence, the seizure of a kilogram of fentanyl from a co-defendant’s residence that Ford was using as a stash house. The markings on the seized fentanyl were consistent with coded references Ford used in conversations intercepted pursuant to Title III wiretaps. Investigators also seized approximately $240,000 in drug proceeds from Ford’s own residence and vehicle. Judge Schwab scheduled sentencing for January 29, 2025. The law provides for a total sentence of not less than 15 years and up to life in prison, a fine of up to $20 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history of the defendant. Pending sentencing, the court remanded Ford to the custody of the United States Marshals Service. Assistant United States Attorneys Katherine C. Jordan and Jonathan D. Lusty are prosecuting the case on behalf of the government. The Drug Enforcement Administration, Allegheny County Sheriff’s Office, McKeesport Police Department, Pittsburgh Bureau of Police, Fort Worth Police Department, and Dallas Police Department conducted the investigation that led to the prosecution of Ford. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: New Castle Man Sentenced to More Than Nine Years in Prison on Drug Trafficking and Firearm Convictions

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, has been sentenced in federal court to 110 months in prison for trafficking fentanyl and cocaine and possessing a firearm after a felony conviction, United States Attorney Eric G. Olshan announced today. Senior United States District Judge Arthur J. Schwab imposed the sentence on Donald Jeter, 34. Judge Schwab also ordered Jeter to serve six years of supervised release following his prison sentence. Jeter previously pleaded guilty in this case to conspiring to distribute fentanyl and cocaine between May 2021 and October 2022, and to possessing a firearm on August 10, 2022, after a felony conviction. Federal law prohibits possession of a firearm or ammunition by a convicted felon. Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States. United States Attorney Olshan commended the Federal Bureau of Investigation, Pennsylvania Office of Attorney General, United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, and Pennsylvania State Police for the investigation leading to the successful prosecution of Jeter.


title: Aryan Brotherhood Prison Gang Member Sentenced to Life in Prison for Murder in Aid of Racketeering

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Jason Corbett, 52, of Paradise, was sentenced today by U.S. District Judge Kimberly J. Mueller to life in prison for murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced. According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. AB members oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons. According to Corbett’s plea agreement, on July 28, 2018, Corbett murdered an inmate at High Desert Prison as part of an AB-related killing. Corbett admitted that he committed the murder because the victim falsely claimed to be an AB member and had run up a significant drug debt at his previous prison — both violations of the AB’s expected codes of conduct. Corbett willfully, deliberately, and with premeditation, murdered the victim in order to maintain his status within the gang. On Jan. 3, 2024, Corbett’s co-defendant in the murder, Pat Brady, 54, pleaded guilty to the same murder in aid of racketeering. He was sentenced to life in prison on Aug. 5, 2024. In April 2024, following a nine-week trial, a federal jury found three of Corbett’s co-defendants guilty of RICO conspiracy, conspiracy to murder, murder in aid of racketeering, and multiple counts of drug trafficking. Ronald Yandell, 62, and Billy Sylvester, 56, are scheduled to be sentenced by Judge Mueller on Nov. 19, 2024. Danny Troxell, 71, will be sentenced at a date to be set by the Court. During a status conference today, Kathleen Nolan, 70, of Calimesa, entered a guilty plea for her part in the drug trafficking conspiracy with AB members and associates. She is scheduled to be sentenced on Dec. 17, 2024. Charges are pending against Kevin MacNamara, 44, of La Palma. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case. The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.


title: Birmingham Man Sentenced to 5 ½ Years in Prison on Fentanyl Charge

component: USAO - Alabama, Northern

body_text: ANNISTON, Ala. – A Birmingham man has been sentenced for a fentanyl-related drug crime, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Special Agent in Charge Steven L. Hofer. U.S. District Court Judge Corey L. Maze sentenced Demarcus Hill, 42, to 66 months in prison. In April, Hill was convicted of conspiracy to possess with the intent to distribute fentanyl. According to evidence presented at trial, Hill and his co-defendant, JT Toombs, drove from Birmingham to Atlanta, Georgia, where they picked up over 2000 fentanyl pills to bring back to Birmingham. During the return trip, an Oxford Police Department officer conducted a traffic stop on the vehicle on Interstate 20. His canine detected the odor of narcotics, and the officer discovered the fentanyl pills during a search of the vehicle. The DEA investigated the case along with the Oxford Police Department. Assistant U.S. Attorney Brittany Byrd prosecuted the case.


title: Columbia Man Sentenced for Firearm Offense After a Call from a Concerned Citizen

component: USAO - South Carolina

body_text: COLUMBIA, S.C. — Marquise Edward Carolina, 32, of Columbia was sentenced to more than five years in federal prison after pleading guilty being a felon in possession of a firearm. Evidence presented to the court showed that on Aug. 11, 2019, the City of Columbia Police Department received a call from a concerned citizen who reported that a man dressed in all black, driving a black vehicle, was waiving a gun around at a local apartment complex in the middle of the day. Officers responded to the scene and observed Carolina wearing all black in the front passenger’s seat of a black sedan. Officers searched Carolina and found a loaded pistol in his pants. Carolina has prior convictions for attempted armed robbery, kidnapping, burglary, possession of cocaine, and possession of crack cocaine, all of which prevent him from carrying a firearm under federal law. Additionally, Carolina has convictions for assault and battery 3 rd degree and domestic violence 3 rd degree. United States District Judge Sherri A. Lydon sentenced Carolina to 63 months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Columbia Police Department. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case. ###


title: Summers County Man Pleads Guilty to Federal Gun Crimes

component: USAO - West Virginia, Southern

body_text: BECKLEY, W.Va. – Matthew Harris England, 38, of Meadow Bridge, pleaded guilty today to being a felon in possession of a firearm and possession of an unregistered short-barreled shotgun. According to court documents and statements made in court, on April 3, 2023, law enforcement responded to reports of a domestic disturbance at England’s residence in Meadow Bridge. When law enforcement entered the residence, they found and seized a Savage model Stevens 94F 20-gauge shotgun with a modified and shortened barrel and a modified and shortened stock on a chair in the living room. England was arrested, and told officers he knew the firearm was in the residence and that the length of its barrel appeared to be illegal. The short-barreled shotgun was not registered to England in the National Firearms Registration and Transfer Record as required by federal law. Federal law also prohibits a person with a prior felony conviction from possessing a firearm or ammunition. England knew he was prohibited from possessing a firearm because of his prior felony conviction for aiding and abetting the possession of stolen firearms in United States District Court for the Southern District of West Virginia on May 9, 2014. England is scheduled to be sentenced on January 24, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Summers County Sheriff’s Department, the West Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Lesley C. Shamblin is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. 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. 5:23-cr-93. ###


title: Justice Department Sues Visa for Monopolizing Debit Markets

component: Office of the Attorney General

body_text: The Justice Department filed a civil antitrust lawsuit today against Visa for monopolization and other unlawful conduct in debit network markets in violation of Sections 1 and 2 of the Sherman Act. Filed in the U.S. District Court for the Southern District of New York, the complaint alleges that Visa illegally maintains a monopoly over debit network markets by using its dominance to thwart the growth of its existing competitors and prevent others from developing new and innovative alternatives. According to the complaint, more than 60% of debit transactions in the United States run on Visa’s debit network, allowing it to charge over $7 billion in fees each year for processing those transactions. The complaint further alleges that Visa illegally maintains its monopoly power by insulating itself from competition. For example, Visa wields its dominance, enormous scale, and centrality to the debit ecosystem to impose a web of exclusionary agreements on merchants and banks. These agreements penalize Visa’s customers who route transactions to a different debit network or alternative payment system. In so doing, the complaint alleges, Visa locks up debit volume, insulates itself from competition, and smothers smaller, lower-priced competitors. Visa also induces would-be competitors to become partners instead of entering the market as competitors by offering generous monetary incentives and threatening punitive additional fees. As the complaint alleges, Visa coopted the competition because it feared losing share, revenues, or being displaced by another debit network altogether. “We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market,” said Attorney General Merrick B. Garland. “Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything.” Debit transactions are an important and popular part of the U.S. financial system. Millions of Americans prefer or must use debit for online and in-person purchases. Visa dominates debit network markets that facilitate these transactions, charging significant fees and stifling competition in the process. Visa’s systematic efforts to limit competition for debit transactions have resulted in billions of dollars in additional fees imposed on American consumers and businesses and slowed innovation in the debit payments ecosystem. Through this lawsuit, the Justice Department seeks to restore competition to this vital market on behalf of the American public. “Anticompetitive conduct by corporations like Visa leaves the American people and our entire economy worse off,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “Today’s action against Visa reminds those who would stifle competition rather than competing on price or investing in innovation that the Justice Department will never hesitate to enforce the law on behalf of the American people.” “Visa fears competition and innovation, and instead chooses unlawful cooperation and monopolization,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Visa abuses its power over its customers and buys off would-be rivals at the expense of American consumers, merchants, banks, and the competitive process itself. Today’s lawsuit holds Visa accountable for its conduct in a market that forms the backbone of American commerce.” Visa maintains enormous scale on both sides of the debit market — with merchants and their banks and with consumers and their banks — and the complaint alleges that Visa’s exclusionary practices extend, deepen, and protect what it refers to as an “enormous moat” around its business. When faced with the possibility that smaller debit networks or new technology entrants would threaten that position, Visa engaged in a deliberate and reinforcing course of conduct to cut off competition and prevent rivals from gaining the scale, share, and data necessary to compete for customers’ business: Smaller Debit Networks : Visa uses leverage based on the large number of transactions that must run over Visa’s payment rails to impose expansive volume commitments on merchants and their banks, as well as on financial institutions that issue debit cards. These agreements are priced so that, unless all or nearly all debit volume runs over Visa’s payment rails, large disloyalty penalties can be imposed on all Visa transactions. Merchants cannot afford to use Visa’s smaller competitors for transactions where options do exist, even when those competitors offer lower per-transaction prices. Tech Entrants : As Visa’s internal documents make clear, Visa feared that some technology companies and fintech startups with “network ambitions” would cut Visa out as the middleman between merchants, consumers, and their banks by offering a better or cheaper payment product. Visa aimed to stop that development by entering into agreements to pay potential competitors to partner instead of innovating. As Visa’s then-CFO put it: “Everybody is a friend and partner. Nobody is a competitor.” In 2020, the Justice Department filed a civil antitrust lawsuit to stop Visa from acquiring Plaid, a technology company that powers fintech apps developing disruptive options for online debit payments. The companies abandoned their planned $5.3 billion merger. Visa Inc. is a Delaware corporation headquartered in San Francisco. Visa has a global operating income of $18.8 billion and an operating margin of 64% in 2022. North America is among Visa’s most profitable regions with 2022 operating margins of 83%. Visa charges roughly $8 billion in network fees on U.S. debit volume annually. Globally, Visa processes $12.3 trillion in total payment volume.


title: Eighth Defendant Sentenced in Meth Conspiracy Tied to Officer’s Murder

component: USAO - Virginia, Western

body_text: ABINGDON, Va. – An Appalachia, Virginia man, who participated in a conspiracy to distribute methamphetamine tied to the murder of Big Stone Gap, Virginia Police Officer Michael Chandler, was sentenced today in federal court in the Western District of Virginia. Christopher Bates, 31, was sentenced today to 78 months in federal prison. Bates is the eighth defendant to be sentenced for his role in the conspiracy. Previously sentenced for their role in the conspiracy were: Timothy Ray Jones - 235 months; Charles Ryan Bowman 120 months; Elicia Amber Burns 172 months; James Brian Mullins 180 months; Justin Dwayne Skaggs 132 months; Tyler Lee Westmoreland 54 months; and James Ray Worley 120 months. A total of 19 defendants have been charged for conspiring to distribute more than 100 pounds of methamphetamine, as well as heroin and fentanyl. According to court documents, beginning in August 2021 and continuing until their arrest, the 19 defendants participated in a conspiracy to traffic methamphetamine from Tennessee and other states into southwest Virginia, and then further distribute it throughout Wise County, Virginia. Tragically, at approximately 4:00 a.m. on November 13, 2021, Officer Chandler responded to a welfare check call at 2505 Orr Street in Big Stone Gap. This address, known locally as “the red house,” was well-known to police and often the subject of calls for service for civil disturbances, warrant service, welfare checks, overdoses, complaints of assaults, and drug-related activities. Upon arriving at the Orr Street address, Officer Chandler encountered a vehicle outside the residence and was immediately shot by Michael Donivan White. Officer Chandler died later that evening from his injuries. White was later located at a motel in Kingsport, Tennessee and a subsequent search of the motel room revealed a Taurus, 9mm pistol. Further testing ultimately proved this firearm to be the same one that fired the shots that killed Officer Chandler. Michael Donivan White was indicted on federal charges for killing Officer Chandler and has since pled guilty. White is scheduled to be sentenced in federal court in Abingdon on November 20, 2024. United States Attorney Christopher R. Kavanagh, and James VanVliet, Acting Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement. The investigation of this case is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Virginia State Police, the United States Marshal’s Service, the Wise County Sheriff’s Office, the City of Norton Virginia Police Department, the Kingsport Tennessee Police Department, the Big Stone Gap Police Department, the Wise County Commonwealth’s Attorney’s Office, the East Tennessee Drug Task Force, and the Southwest Virginia Drug Task Force, which is comprised of investigators from the Virginia State Police, Lee County Sheriff’s Office, Scott County Sheriff’s Office, Wise County Sheriff’s Office, City of Norton Police Department, and Big Stone Gap Police Department. Assistant U.S. Attorney Lena L. Busscher is prosecuting the case.


title: New York Man Charged with Failure to Register as a Sex Offender

component: USAO - Pennsylvania, Middle

body_text: SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Bruce Neil Kresin, age 51, of Binghamton, New York, was indicted by a federal grand jury for failing to register as a sex offender upon relocating to Pennsylvania. According to United States Attorney Gerard M. Karam, the indictment alleges that from July 2024 and continuing to at least August 27, 2024, despite being required to register under the Sex Offender Registration and Notification Act (“SORNA”), upon relocating to Lackawanna County, PA, Kresin failed to register his address in Pennsylvania as required by SORNA. This matter was investigated by the United States Marshals Service (USMS). Assistant United States Attorney Jeffery St John is prosecuting the case. This case was brought as part of Project Safe Childhood , a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Columbia Man Sentenced to Federal Prison for Assaulting a Deputy U.S. Marshal

body_text: COLUMBIA, S.C. — Johnny Mercer Vanover, 49, of Columbia was sentenced to 30 months in federal prison after pleading guilty to assault on a federal employee. Evidence presented to the court showed that on June 29, 2023, officers with the South Carolina Department of Corrections transported Vanover to federal court in Columbia to be arraigned on federal charges. When Vanover arrived, a Deputy U.S. Marshal asked him to turn around so his restraints could be removed. Vanover refused to comply, and a deputy placed a hand on Vanover’s shoulder to turn him around and access his restraints. Vanover resisted and began cursing and yelling. He also clinched his fists and told one of the deputies, “I’ll eat you up.” Deputies assisted Vanover to the ground and during the struggle, Vanover bit one deputy on the bicep causing bleeding. The bitten Deputy U.S. Marshal was admitted to the hospital and released with minor injuries. United States District Judge Sherri A. Lydon sentenced Vanover to 30 months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system. This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case. ###


title: Hogansburg Man Sentenced for International Money Laundering Conspiracy

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Carey Terrance, Sr., age 43, of Hogansburg, New York, was sentenced yesterday to time served and to pay a $350,000 fine in connection with a scheme to smuggle cut rag tobacco into Canada from the United States. Cut rag tobacco is tobacco cut into fine strips and used to make smoking tobacco. United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Office, made the announcement. As part of his previously entered guilty plea, Terrance, Sr. admitted that from approximately 2013 to 2016, he worked with co-conspirators to acquire cut rag tobacco and smuggle it into Canada, where it was made into contraband cigarettes. Members of the conspiracy sold the contraband cigarettes, making substantial profits by avoiding taxes and duties, and used some of their profits to buy more cut rag tobacco that they sent into Canada. Funds to purchase the cut rag tobacco were sent from Canada, often through the Northern District of New York, to North Carolina. Once purchased, the cut rag tobacco was delivered to warehouses and buildings in the Northeastern United States, including on the St. Regis Mohawk Akwesasne Reservation, where it was staged for smuggling into Canada. Terrance admitted that he laundered $221,860.20 as part of the scheme; he forfeited that amount as part of sentence in addition to the fine imposed. Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 2-year term of post-imprisonment supervised release. HSI and IRS-CI investigated this case, and Assistant U.S. Attorneys Allen J. Vickey and Alexander P. Wentworth-Ping prosecuted this case.


title: Maryland Man Sentenced to 180 Months for Drug and Firearms Offenses

body_text: ALBANY, NEW YORK – Brandon Bartley, age 26, of Laurel, Maryland, was sentenced today to 180 months in prison and to pay a $5,000 fine for drug and gun crimes in connection with his trafficking of large amounts of fentanyl, cocaine and methamphetamine, and his possession of more than 30 firearms. United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement. Bartley previously pled guilty to conspiracy to distribute and possess with intent to distribute cocaine, methamphetamine, and fentanyl; possession with intent to distribute cocaine, methamphetamine, and fentanyl; and possession of firearms in furtherance of drug trafficking crimes. Bartley admitted that he engaged in a conspiracy to distribute, and that he possessed with intent to distribute, cocaine, methamphetamine, and fentanyl, from an apartment on Western Avenue in Albany. On May 23, 2023, law enforcement searched his apartment and found 34 firearms, including a loaded Glock on his bed that he used to protect his drugs and drug proceeds, and other firearms, as well as more than 400 grams of fentanyl pills, more than 7,000 grams of pills containing methamphetamine, and more than 700 grams of cocaine. United States District Judge Anne M. Nardacci also ordered that Bartley serve a 5-year term of supervised release following his release from prison. The following defendants have also been charged in connection with this investigation: Anthony Luizzi pled guilty on March 18, 2024 , to drug and gun crimes in connection with his trafficking of large amounts of fentanyl, cocaine and methamphetamine, and his possession of more than 30 firearms, including drugs and guns found at the Western Avenue property. Luizzi is scheduled to be sentenced on October 1, 2024. Devon Newsome pled guilty on September 3, 2024 , to unlawfully transferring firearms as part of the firearms trafficking conspiracy. Newsome is scheduled to be sentenced on January 6, 2025. Jabree Jones was charged with a violation of the terms of his supervised release on May 23, 2023, based on violations of federal gun and drug trafficking laws, and has been detained pending the resolution of the supervised release violation petition. A final revocation hearing is currently scheduled for December 17, 2024. The charges against Jones are merely accusations. He is presumed innocent unless and until proven guilty. The DEA and the ATF are investigating the case, with assistance from the Saratoga County Sheriff’s Office (SCSO), the United States Postal Inspection Service (USPIS), U.S. Department of Labor, Office of Inspector General (USDOL-OIG), and Henry County Police Department in Georgia. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.


title: Saratoga County Man Sentenced to Prison for Firearms Offenses

body_text: ALBANY, NEW YORK – Jacob Boldt, age 35, of Gansevoort, New York, was sentenced today to 51 months in prison for dealing in firearms without a license and possessing a firearm as a felon. United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo, New York Field Office; and Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement. In pleading guilty, Boldt admitted he sold multiple firearms without a license, identified criminals as good customers for “ghost guns,” and possessed a firearm that he knew was stolen. At the time of the offenses, Boldt could not possess firearms because of a prior felony conviction. In addition to the imprisonment, United States District Judge Anne M. Nardacci fined Boldt $5,000, ordered him to serve 2 years of supervised release and forfeit a shotgun seized by law enforcement. HSI and ATF investigated the case with assistance from the Saratoga County Sheriff’s Office, and Assistant U.S. Attorney Jonathan S. Reiner prosecuted the case.


title: Elmo man sentenced to three years in prison for defrauding Social Security Administration by stealing deceased mother’s benefits; lying to personally receive funds

component: USAO - Montana

body_text: MISSOULA — A federal judge today sentenced an Elmo man to three years in prison and ordered $95,722 restitution for stealing his deceased mother’s Social Security benefits and underreporting his income and assets to receive Social Security Administration benefits, U.S. Attorney Jesse Laslovich said. The defendant, Gerry Alen Albus, 64, pleaded guilty in May to theft of government money and Social Security fraud as indicted. U.S. District Judge Donald W. Molloy presided. The court also ordered three years of supervised release after incarceration. Albus was ordered to self-report to the Bureau of Prisons. In court documents, the government alleged that in May 2015, Albus was approved to receive Supplemental Security Income benefits from SSA and was advised of his legal obligation to accurately report his income, resources and household composition. In October 2016, Albus reported to SSA that he had moved to Elmo, lived alone and paid rent to his landlord, when in fact, he did not pay rent and his landlord was his romantic partner. In 2017, Albus and his partner converted his partner’s property into a dog grooming business. The government further alleged that Albus did not disclose his ownership interest in property he co-owned in Florida with his mother or proceeds from the sale of the property in June 2017. Albus’ mother died in March 2017, but SSA continued to send her monthly payments until it learned of her death through this investigation. From March 2017 until November 2021, Albus took his mother’s SSA payments and used them for his personal expenses. Albus also failed to report other assets, including three vehicles, several bank accounts and proceeds from the dog grooming business. In a May 2022 interview with SSA special agents, Albus admitted he took his mother’s benefits after her death because he felt he was “entitled” to them. SSA determined Albus received approximately $60,627 in SSI benefits for which he was ineligible and stole an additional $59,535 in SSA funds intended for his mother. The U.S. Attorney’s Office prosecuted the case. The SSA Office of Inspector General and Montana Division of Criminal Investigation conducted the investigation. XXX


title: Seven People Charged With Over $40 Million In Medicare And Medicaid Fraud

component: USAO - Colorado

body_text: DENVER – The United States Attorney’s Office for the District of Colorado announces that Ronald King, 51, formerly of Berlin, New Hampshire, and now residing in Bangor, Maine, Victor Roiter, 55, of Sunny Isles Beach, Florida, Tina Wellman, 51, of Mayfield, New York, Adam Shorr, 55, of Dunedin, Florida, Robert O’Sullivan, 55, of Lake Sherwood, California, Bradley Edson, 66, of Mesa, Arizona, and John Gautereaux, 59, of Temecula, California were indicted by a federal grand jury on charges related to defrauding Medicare and Colorado Medicaid. According to the indictment, the defendants were involved together through a variety of corporate entities including as owners of Tesis Labs, LLC, a parent company that owned and operated genetic testing labs, including Claro Scientific Laboratories, Inc., based in Lafayette, Colorado, and 303 Diagnostics LLC, based in Aurora, Colorado. The indictment alleges that defendants King, Roiter, Wellman, and Shorr conspired to defraud Medicare and Colorado Medicaid through several means, including by paying kickbacks and bribes to purported marketing companies for referrals for fraudulent and medically unnecessary genetic testing. These referrals in turn led to more than $40 million in false and fraudulent claims paid by Medicare and Colorado Medicaid to the laboratories for the genetic testing claims. The indictment alleges that all seven defendants participated in a conspiracy to offer and pay illegal bribes and kickbacks in connection with health care benefit programs, including Medicare, Colorado Medicaid, and private health insurance plans. The defendants agreed to pay kickbacks and bribes to individuals and entities they identified as “marketers” to solicit patients, including elderly Medicare beneficiaries, to participate in unnecessary genetic testing and to obtain doctors’ signatures on testing order forms for these patients. Many of these kickback recipients used call centers to target elderly Medicare beneficiaries. Finally, the indictment alleges that defendants King, Roiter, and Wellman conspired to launder the proceeds of the first two conspiracies described above. Defendants King, Wellman, Shorr, O’Sullivan, Edson, and Gautereaux made initial appearances in Denver, Colorado, between August 26 and September 5, 2024, in front of Magistrate Judge Susan Prose. The charges contained in the indictment are allegations and the defendants are presumed innocent of the charges unless and until proven guilty. The case is being investigated by the Department of Health and Human Services – Office of the Inspector General, the Federal Bureau of Investigation Denver Field Division, and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Anna Edgar.


title: New York Acupuncturist Sentenced to 34 Months in Prison for Role in $9 Million Health Care Fraud Targeting Amtrak

component: USAO - New Jersey

body_text: NEWARK, N.J. – A New York acupuncturist was sentenced today to 34 months in prison for participating in a $9 million health care fraud scheme to defraud Amtrak, U.S. Attorney Philip R. Sellinger announced. Punson Figueroa, aka “Susie,” 58, of Long Island City, New York, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging her with conspiracy to commit health care fraud. “Submitting fraudulent claims to steal money harms the public and the health care system. This defendant admitted fleecing the health care system for millions of dollars in illicit claims, and today she learned the punishment for her offense. My office and our partners are committed to stopping health care scams and ensure that guilty participants are punished.” U.S. Attorney Philip R. Sellinger “We remain fully committed to bringing justice to health care providers who target Amtrak’s health care plans as well as Amtrak employees who collude with them,” said Amtrak’s Inspector General, Kevin H. Winters. “We hope this case serves as a deterrent for health care providers and Amtrak employees who may choose to engage in such schemes, and we ask anyone who suspects or observes such fraud to report it to our fraud, waste, and abuse hotline.” “This investigation unveiled the mastermind behind a $9 million health care fraud scheme,” DEA – New York Special Agent in Charge Frank Tarentino said. “I applaud our law enforcement partners whose diligent work put an end to this conspiracy and brought Punson Figueroa to justice to face the consequences of her illegal actions.” “This case demonstrates Amtrak’s resolve to work alongside all our law enforcement partners to investigate and hold accountable those who attempt to defraud the system,” Chief Sam Dotson said. “We are grateful for the collaborative law enforcement effort that led to this guilty plea, and we will continue to be vigilant in safeguarding Amtrak’s assets.” According to documents filed in this case and statements made in court: From January 2019 through June 2022, Figueroa and her conspirators agreed to engage in a scheme to bill the Amtrak health care plan for fraudulent claims for services that never were provided and were medically unnecessary. Figueroa recruited Amtrak employees to participate in the scheme by paying them cash in return for allowing her to use their personal and insurance information to submit false and fraudulent claims. Figueroa conspired with dozens of Amtrak employees and paid hundreds of thousands of dollars in cash kickbacks to Amtrak employees over the course of the scheme. On June 16, 2021, an undercover law enforcement agent posing as an Amtrak employee met with Figueroa at Figueroa’s office in New York. Figueroa instructed the undercover agent to sign his name about 30 times for services received and instructed the undercover agent not to date the signatures. Figueroa caused false claims to be submitted to Amtrak’s health care plan indicating that the undercover agent had visited providers at least seven times in May 2021, purportedly receiving acupuncture and physical therapy services. The undercover agent visited Figueroa’s office on only one other occasion, on July 29, 2021. At this meeting, Figueroa handed the undercover agent an envelope filled with $1,000. Thereafter, Figueroa continued to use the undercover agent’s personal and insurance information to submit dozens of fraudulent claims to the Amtrak health care plan. In total, Figueroa caused Amtrak to pay out over $9 million in false and fraudulent insurance claims. In addition to the prison term, Judge Arleo sentenced Figueroa to three years of supervised release and ordered restitution of $9.05 million. U.S. Attorney Sellinger credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, and the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, with the investigation leading to the sentencing. The government is represented by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker of the Health Care Fraud Unit in Newark.


title: Operation Smoke and Mirrors Update: Final Major Defendant Pleads Guilty to Role in Methamphetamine Trafficking Organization

body_text: CHARLESTON, W.Va. – U.S. Attorney Will Thompson joined with law enforcement partners today to announce the guilty plea by the final major defendant in a four-indictment drug trafficking organization (DTO) case that yielded the largest methamphetamine seizure in West Virginia history. Tres Avery Davis, 36, of Charleston, pleaded guilty to possession with intent to distribute 40 grams or more of a mixture and substance containing fentanyl. Davis is among 31 defendants convicted in the case. Dubbed Operation Smoke and Mirrors, this major drug trafficking investigation resulted in law enforcement seizing well over 400 pounds of methamphetamine, 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash. The DTO used tractor-trailers to transport the drugs, often several hundred pounds for each trip, from the West Coast to the Southern District of West Virginia. The drugs were usually exchanged for hundreds of thousands of dollars in cash, which was delivered back to California. “Investigators followed the trail of methamphetamine being sold here in Charleston and traced it all the way back to Los Angeles, California, and our southern border,” Thompson said. “The investigation revealed this organization was bringing methamphetamine across our southern border on pallets containing hundreds of pounds at a time.” The shipments trucked to West Virginia included approximately 196 pounds of methamphetamine and 4 kilograms of cocaine driven from California to Bluefield in March 2023 by Ildiberto Gonzalez Jr. In exchange for that shipment, Gonzalez received a box that he believed contained approximately $400,000 as payment. Gonzalez was driving away from the transaction when law enforcement pulled him over and seized his 2009 Freightliner semi-truck with attached trailer. Gonzalez, 30, of San Bernadino, California, was sentenced on July 22, 2024, to 14 years in prison after pleading guilty to conspiracy to distribute a quantity of methamphetamine. Gonzalez admitted that he made the March 2023 delivery at the direction of co-conspirator Alejandro Gallegos, and previously delivered boxes containing controlled substances for Gallegos in or about January 2023. Gallegos, also known as “Alex,” “Rooster,” “G” and “Primo,” 42, of Hacienda Heights, California, pleaded guilty on June 20, 2024, to conspiracy to distribute 500 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of cocaine. Gallegos awaits sentencing. “For the purpose of sentencing, Mr. Gallegos is personally responsible for more damage done to our communities by methamphetamine than any other single defendant who has ever appeared in United States District Court for the Southern District of West Virginia,” Thompson said. Gallegos also sent large amounts of controlled substances to South Carolina, Georgia and other areas. The DTO was directly involved in price fixing in the methamphetamine trade by raising the price of methamphetamine coming into the United States from Mexico based on fluctuations in the currency conversion rate. “Operation Smoke and Mirrors marked the largest methamphetamine seizure in West Virginia history, however the FBI’s work, and that of our local, state, and federal partners, is far from finished,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “Today’s sentencing sends a message. To those who think southern West Virginia can be a place to traffic dangerous drugs, know that we are using every tool at our disposal to rid our communities of these substances. Our neighborhoods, businesses, schools, and streets deserve to be free of this poison, and the men and women of the FBI remain fiercely committed to that mission.” With today’s guilty plea, Davis admitted that he delivered approximately 2,000 blue pills containing fentanyl to a Kemp Avenue residence in Charleston on March 7, 2023. Law enforcement seized the pills at the residence on March 9, 2023. Davis admitted that he intended to distribute at least some of these pills to other people. Davis is scheduled to be sentenced on January 9, 2025, and faces a mandatory minimum of 10 years and up to life in prison, at least eight years of supervised release, and an $8 million fine. Among the other defendants sentenced to prison in the case: Jasper Wemh, 39, of Charleston, was sentenced to 16 years and eight months in prison on May 2, 2024, after pleading guilty to conspiracy to distribute 50 grams or more of methamphetamine. Michael Allen Roberts Jr., 41, of St. Albans, was sentenced to 14 years in prison on March 6, 2024, after pleading guilty to conspiracy to distribute 500 grams or more of a mixture containing methamphetamine. Justin Allen Bowen, 42, of Charleston, was sentenced to 12 years and seven months in prison on August 31, 2023, after pleading guilty to conspiracy to distribute 50 grams or more of methamphetamine. Perry Johnson Jr., 30, of Dunwoody, Georgia, was sentenced to 11 years and three months in prison on April 11, 2024, after pleading guilty to conspiracy to distribute methamphetamine. Todd Tyler Snead, 58, of Waynesboro, Virginia, was sentenced to 10 years in prison on September 6, 2023, after pleading guilty to conspiracy to distribute 500 grams or more of methamphetamine. Ryan Keith Kincaid, 47, of South Charleston, was sentenced to 10 years in prison on December 8, 2023, after pleading guilty to conspiracy to distribute cocaine. Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug Program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department. United States District Judge Thomas E. Johnston presided over today’s hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case. The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States. 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-4 (Wemh et al.), 2:23-cr-31 (Jeffries et al.), 2:23-cr-33 (Estep et al.) and 2:23-cr-32 (Gonzalez et al.). ###


title: Belleville Woman Facing PPP Loan Fraud Charges

component: USAO - Illinois, Southern

body_text: EAST ST. LOUIS, Ill. – A Belleville woman is accused of falsely applying for, accepting and spending more than $20,000 in PPP funds for personal expenses. A federal grand jury charged Felicia D. Harris, 44, with four counts of interstate transportation of a security obtained by fraud. She is employed at the U.S. National Geospatial Agency in St. Louis. In response to financial hardships created by the COVID-19 pandemic, the U.S. Small Business Administration utilized the Paycheck Protection Program to offer relief and forgivable loans to struggling businesses. Under PPP, business owners could apply for loans to offset operational costs for payroll, employee benefits, facility expenses and other bills. “Individuals who are employed by the federal government yet seek to steal from federally funded programs by using false pretenses and enrich themselves with PPP loan funds will be held accountable,” said U.S. Attorney Rachelle Aud Crowe. According to court documents, Harris is accused of receiving $20,614 in PPP funds she was not entitled to in February through May 2021. She then used misinformation to apply for loan forgiveness and was approved. “This outcome demonstrates the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS), the National Geospatial-Intelligence Agency Office of Inspector General, and our investigative partners' steadfast commitment to ensuring DoD employees abide by the law," said Acting Special Agent in Charge Ryan Settle, DCIS Southwest Field Office. "Accountability and integrity are expected of individuals employed by the U.S. Government." An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury. Convictions of interstate transportation of a security obtained by fraud are punishable by up to 10 years’ imprisonment and fines up to $250,000. This case represents a crackdown on southern Illinois residents who defrauded the PPP loan program. Last month, three federal employees of the Department of Veterans Affairs were indicted in the Southern District of Illinois on PPP loan fraud charges . Defense Criminal Investigative Service agents are leading the investigation, and Assistant U.S. Attorney Scott Verseman is prosecuting the case.


title: Independence Man Sentenced for Fentanyl Trafficking, Illegal Firearm

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute fentanyl and for illegally possessing a firearm. Wiser Key, 25, was sentenced by U.S. District Judge Roseann Ketchmark to 25 years in federal prison without parole. On March 27, 2024, Key pleaded guilty to one count of conspiracy to distribute fentanyl and one count of possessing a firearm in furtherance of a drug-trafficking crime. Key admitted that he engaged in drug transactions with an undercover law enforcement officer. In one transaction, for example, the undercover officer paid Key $8,500 in exchange for 1,000 counterfeit oxycodone tablets, which contained fentanyl. In another transaction, an undercover officer paid Key $6,000 in exchange for 750 counterfeit oxycodone pills, which contained fentanyl. On April 30, 2021, law enforcement officers executed a search warrant at Key’s residence. Officers found multiple plastic bags that contained tablets, approximately 8 kilograms of suspected THC wax, approximately 39 grams of suspected cocaine, multiple bags of suspected marijuana, an FN handgun, a loaded Glock .40-caliber handgun, a loaded Springfield 9mm handgun, a loaded Sig Sauer .40-caliber handgun, a Harrington and Richardson 20-gauge shotgun, and $24,676 in cash. According to court documents, Key distributed at least 120,000 counterfeit pills, which contained fentanyl, during the conspiracy. He and a co-defendant purchased 4,000 to 5,000 pills at a time from sources in Mexico. Key is the first defendant to be sentenced in this case. Co-defendants Nilolas Albright, 30, of Cameron, Mo., and Demasjiay Cruse, 25, of St. Joseph, Mo., have pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing. This case is being prosecuted by Assistant U.S. Attorneys Maureen A. Brackett, Stephanie C. Bradshaw and John C. Constance. It was investigated by the U.S. Drug Enforcement Administration; the FBI; IRS-Criminal Investigation; the Kansas City, Kan., Police Department; the Kansas City, Mo., Police Department; the Buchanan County, Mo., Sheriff’s Department; and the St. Joseph, Mo., Police Department. Organized Crime and Drug Enforcement Task Force This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: Former Ohio Municipal Prosecutor and Former Criminal Defendant  Charged with Bribery Conspiracy

component: Criminal Division

body_text: An indictment was unsealed today charging two Ohio men with a bribery scheme in which a municipal prosecutor agreed to help a criminal defendant with his pending cases in exchange for auto repair work. According to the indictment, Nicholas Graham, 52, of Warren, was a prosecutor who represented the City of Warren in Warren Municipal Court. Brian Votino, 52, of Niles, had two criminal cases pending in the same court. The indictment alleges that, in October 2019, Graham and Votino agreed that Graham would take action to benefit Votino with respect to Votino’s criminal cases in return for Votino performing repairs to Graham’s truck. To cover up the bribery arrangement, Graham instructed Votino through an intermediary to falsify a bill for the repair services and not to tell Votino’s criminal defense lawyer. According to the indictment, Graham and Votino ultimately carried out their agreement. In exchange for the repair work by Votino, Graham took official action to reduce the charges against Votino and advocated for a lenient sentence. Graham and Votino are charged with one count of conspiracy, one count of honest services wire fraud, and one count of Hobbs Act extortion. If convicted of all counts, they each face a maximum penalty of 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio; and Special Agent in Charge Gregory D. Nelsen of the FBI Cleveland Field Office made the announcement. The FBI Cleveland Field Office is investigating the case. Trial Attorney Blake J. Ellison of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


component: Federal Bureau of Investigation (FBI)

body_text: CLEVELAND - An indictment was unsealed charging two Ohio men with a bribery scheme in which a municipal prosecutor agreed to help a criminal defendant with his pending cases in exchange for auto repair work. According to the indictment, Nicholas Graham, 52, of Warren, was a prosecutor who represented the City of Warren in Warren Municipal Court. Brian Votino, 52, of Niles, had two criminal cases pending in the same court. The indictment alleges that in October 2019, Graham and Votino agreed that Graham would take action to benefit Votino with respect to Votino’s criminal cases in return for Votino performing repairs to Graham’s truck. To cover up the bribery arrangement, Graham instructed Votino through an intermediary to falsify a bill for the repair services and not to tell Votino’s criminal defense lawyer. According to the indictment, Graham and Votino ultimately carried out their agreement. In exchange for the repair work by Votino, Graham took official action to reduce the charges against Votino and advocated for a lenient sentence. Graham and Votino are charged with one count of conspiracy, one count of honest services wire fraud, and one count of Hobbs Act extortion. If convicted, they each face a maximum penalty of 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio; and Special Agent in Charge Gregory D. Nelsen of the FBI Cleveland Division made the announcement. The FBI Cleveland Division is investigating the case. Trial Attorney Blake J. Ellison of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio are prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Case update Nov. 20, 2025: Both defendants pleaded guilty to the conspiracy charge in summer 2025. Judge Solomon Oliver Jr. imposed the following sentences: Nov. 19, 2025 – Graham was sentenced to 3 years of probation with the first 5 months to be served on home detention with electronic monitoring. He was also ordered to complete 120 hours of community service. Graham pleaded guilty on August 13, 2025. Nov. 14, 2025 – Votino was sentenced to 3 years of probation with the first 60 days to be served on home detention with electronic monitoring. He was also ordered to complete 160 hours of community service. Votino pleaded guilty on July 16, 2025.


title: Whitehall man sentenced to more than 16 years in federal prison for role in large meth, fentanyl trafficking ring that distributed drugs in Butte, Helena communities

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

body_text: MISSOULA — A Whitehall man convicted by a federal jury of trafficking methamphetamine and fentanyl as part of a large drug ring that distributed drugs in the Butte and Helena communities was sentenced today to 16 years and eight months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said. The defendant, James Andrew Stringari, 52, was found guilty of conspiracy to distribute and possess with intent to distribute controlled substances and possession with intent to distribute controlled substances in a jury trial in April. U.S. District Judge Dana L. Christensen presided. “Stringari played a critical role as the point-person between the leaders and lower-level dealers in this large drug trafficking conspiracy that brought at least 13 pounds of methamphetamine and thousands of fentanyl pills to the Butte and Helena areas. He was especially dangerous because he possessed a firearm and encouraged others to do the same. But his extensive federal prison sentence means he will no longer be a danger to our communities, for which I am grateful,” U.S. Attorney Laslovich said. In court documents, the government alleged that from June 2022 until about January 2023 in Butte and Helena, Stringari and seven other co-defendants conspired to traffic meth and fentanyl. In June 2022, the Utah Highway Patrol stopped an individual traveling in a vehicle carrying 3.5 pounds of meth and 6,000 pills containing fentanyl and learned that the individual was transporting the drugs to Butte for distribution by “Esco,” who was co-defendant Juan Felipe Vidrio Fuentes, of Anaheim, California. Law enforcement further learned that Fuentes was staying at Whitehall residence along with at least one co-defendant, Stringari, and that Fuentes was supplying both fentanyl and meth throughout the Butte area from the Whitehall residence. In addition, law enforcement corroborated information about meth and fentanyl trafficking that implicated Fuentes, Stringari, co-defendant Janet Dean White and another co-defendant. Fuentes and White also were convicted in the April trial of conspiracy and possession charges. Fuentes was sentenced recently to 30 years in prison, while White was sentenced to 15 years in prison. The government alleged Stringari was long-term, high-level participant in the six-month conspiracy. Stringari procured drugs and guns, facilitated communication between the leaders of the conspiracy and the lower-level dealers and connected multiple parts of the conspiracy together. Without Stringari, the government continued, the conspiracy would not have been able to reach as far into the Butte and Helena communities as quickly as it did, as his local contacts were integral to the conspiracy’s success. During the investigation, law enforcement intercepted packages containing thousands of pills that were mailed from California to the Whitehall address and to a Butte address. Law enforcement also learned that Fuentes had relocated to a house in Helena. Law enforcement conducted coordinated raids of the Helena and Butte addresses. In the Butte residence, law enforcement located approximately six pounds of meth, 208 grams of fentanyl, $15,000 cash and seven firearms. In the Helena residence, law enforcement located approximately seven pounds of meth and 68 grams of fentanyl. Co-defendants Martin Topete Garcia and his brother, Johnathan Topete, both of Mira Loma, California, pleaded guilty and are pending sentencing. Co-defendant Trevor Allen Handy, of Butte, pleaded guilty and was sentenced to three years and six months in prison. Co-defendant Anthony Wayne Johnson II, of Santa Ana, California, pleaded guilty and was sentenced to 20 years in prison, and co-defendant Agatha Noriz Carranza, of Whitehall, pleaded guilty and was sentenced to three years in prison. The U.S. Attorney’s Office prosecuted the case. The Montana Division of Criminal Investigation, Southwest Montana Drug Task Force, Montana Highway Patrol, Jefferson County Sheriff’s Office, Missouri River Drug Task Force, U.S. Postal Inspection Service, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Utah Highway Patrol and Utah State Bureau of Investigations conducted the investigation. The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF. XXX


title: St. Louis Men Admit Involvement in Armed Robbery of Store

body_text: ST. LOUIS – Two men from St. Louis have admitted participating in the armed robbery of a store in St. Louis last year. Orlando Perez, 37, pleaded guilty in U.S. District Court in St. Louis Tuesday to accessory after the fact to a robbery. Jason Fox, 39, pleaded guilty on September 10 to one count of possession and brandishing of a firearm in furtherance of a crime of violence. Both men admitted that Fox robbed the store in the 3700 block of South Kingshighway Boulevard on Jan. 20, 2023. Fox brought merchandise to the counter, then produced a handgun and demanded “all the money from the registers.” The robber also stole video games and two Xbox consoles. Police traced the robber to a nearby shopping center, where they caught Perez with the keys to the vehicle used for the robbery, as well as cash and ammunition. The stolen merchandise was in the backseat of the car, and Fox was arrested nearby. Perez had 3.54 grams of methamphetamine in his pocket and admitted owning the gun. Fox is scheduled to be sentenced December 9 and Perez is scheduled to be sentenced January 6. The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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: New Haven Man Who Sold Fentanyl-Laced Cocaine to Overdose Victim Sentenced to 8 Years in Federal Prison

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JERRARD SANTIAGO, 44, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 96 months of imprisonment, followed by three years of supervised release, for narcotics distribution offenses stemming from an overdose death investigation in 2021. According to court documents and statements made in court, on May 18, 2021, Santiago sold cocaine laced with fentanyl to a 22-year-old male in a restroom of the Mohegan Sun Casino. The purchaser overdosed on the casino floor and died approximately 11 days later. On February 3, 2023, investigators made a controlled purchase of fentanyl and heroin from Santiago. On February 14, 2023, investigators made a controlled purchase of fentanyl and cocaine from Santiago. Santiago has been detained since his arrest on March 30, 2023. On January 29, 2024, he pleaded guilty to two counts of possession with intent to distribute, and distribution of, a controlled substance. After an evidentiary hearing in April 2024, Judge Meyer concluded that Santiago knowingly distributed the narcotics that caused the victim’s overdose and death. This matter was investigated by the Drug Enforcement Administration and the Mohegan Tribal Police. The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Christopher W. Schmeisser.


title: Convicted Felon Found Guilty of Shooting a Transgender Victim

component: USAO - District of Columbia

body_text: WASHINGTON – A Superior Court jury, today, found Jerry Tyree, 46, of Washington, D.C., guilty of aggravated assault while armed for shooting the victim on November 29, 2023, in the 5900 block of Foote Street NE, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). The jury found Tyree guilty, following a two-week trial, of one count of aggravated assault while armed, one count of possession of a firearm during a crime of violence, two counts of felon in possession of a firearm, and one count of attempted possession of liquid PCP. Tyree faces a mandatory minimum term of 10 years incarceration for aggravated assault while armed. The Honorable Judge Errol Arthur scheduled sentencing for December 13, 2024. According to the government’s evidence, the defendant met the victim at the intersection of Eastern Avenue NE and Foote Street NE shortly before 2:00 p.m., on November 29, 2023. After negotiating a price for oral sex, the defendant and the victim walked together into a nearby apartment building, where the victim performed oral sex on the defendant. The defendant then accused the victim of robbing him, and when she denied doing so, the defendant pulled out a small silver handgun and shot the victim directly in the penis before leaving the scene. Police were called by a neighbor and the victim was transported to the hospital, where she underwent multiple surgeries. A month later, on December 30, 2023, the defendant was arrested in possession of that same small silver handgun less than a mile from the shooting and in possession of several vials, including one that was partially filled with suspected PCP. Tyree was identified as the shooter from November 29, 2023, based on an identification procedure, ballistics evidence, and DNA evidence connecting him to the scene. The defendant was convicted in 2005 of voluntary manslaughter and use of a firearm during a crime of violence in Maryland, and in 2022 of attempted possession with intent to distribute PCP, in Washington, DC. This case was investigated by the Metropolitan Police Department. It was prosecuted and tried by Assistant U.S. Attorneys Anthony Cocuzza and Daniel Bromwich.


title: Federal Court Permanently Shuts Down Illinois Tax Preparer

component: Tax Division

body_text: A federal court in the Northern District of Illinois today permanently enjoined Joliet, Illinois, tax return preparer Sir Michael Joseph Davenport and his company My Unity Tax Financial & Tax Preparation LLC (My Unity Tax) from preparing federal tax returns for others and from owning or operating any tax return preparation businesses in the future. Davenport agreed to the permanent injunction entered against him and his business. The civil complaint filed in the case alleges that Davenport and his company prepared false and fraudulent federal tax returns to improperly reduce the customers’ tax liabilities or to obtain tax refunds to which the customers are not entitled. The complaint alleges that Davenport and My Unity Tax routinely prepared tax returns for customers reporting fictitious businesses for customers, minimal or no income and large fabricated or manipulated expenses to fraudulently reduce taxable income. As alleged in the complaint, in most cases these businesses did not exist. The complaint also alleges that, despite being issued a Preparer Tax Identification Number (PTIN) by the IRS, Davenport operated as a “ghost preparer” by not signing customers’ tax returns, nor did he identify himself as the paid preparer by reporting his PTIN on the returns he prepared for paying customers. As further alleged by the United States, Davenport and My Unity Tax used software programs intended for personal rather than professional use to prepare their clients’ tax returns, so when the returns were filed, it appeared that customers filed the returns themselves. Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details. Davenport Stipulated judgment PI.pdf


title: North Port Man Sentenced To 70 Years In Federal Prison For Producing And Possessing Child Sexual Abuse Videos

component: USAO - Florida, Middle

body_text: Fort Myers, Florida – U.S. District Judge Thomas P. Barber today sentenced Raul Colon-Ocasio (32, North Port) to 70 years in federal prison for production and possession of videos depicting the sexual abuse of children. Colon-Ocasio was also sentenced to a term of supervised release for life and ordered to register as a sex offender. A federal jury found Colon-Ocasio guilty on June 5, 2024. According to court documents, between December 2021 and May 5, 2022, Colon-Ocasio used two minors to produce numerous videos of sexual abuse. In 2022, a parent of Minor Victim 1 reported her daughter missing to law enforcement in Charlotte County. While investigating, law enforcement uncovered communications on social media between Colon-Ocasio and the child that were sexual in nature. In October 2022, an FBI Task Force Officer assumed the social media account of Minor Victim 1 and began communicating with Colon-Ocasio. On October 18, 2022, instead of Colon-Ocasio meeting Minor Victim 1, he encountered law enforcement. Colon-Ocasio’s cellphone was seized. Subsequent to a search warrant for his cellphone, law enforcement located sexually explicit videos that Colon-Ocasio had produced of Minor Victim 1. Additionally, law enforcement located numerous videos that Colon-Ocasio had produced of another child engaging in sexually explicit conduct. Subsequent to further investigation, Minor Victim 2 was located by law enforcement. This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force, with includes the Charlotte County Sheriff’s Office that assisted with this investigation. It was prosecuted by Assistant United States Attorney Yolande G. Viacava. This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.


title: Billings man admits arranging for commercial sex with minor girl in undercover investigation

body_text: BILLINGS — A Billings man accused of texting with undercover law enforcement to arrange for sex with a minor girl and showing up at an agreed-upon location admitted to a racketeering crime today, U.S. Attorney Jesse Laslovich said. The defendant, Christopher Lynn Cliburn, 60, pleaded guilty to use of facility in interstate commerce in aid of racketeering as charged in a superseding information. Cliburn faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Cliburn was detained pending further proceedings. In court documents, the government alleged that on Nov. 16, 2023, law enforcement placed an ad on a website depicting a fictious 14-year-old girl. The ad suggested that the “girl” was willing to engage in sexual conduct for money. On Nov. 19, 2023, a phone number, later connected to Cliburn, responded to the ad. Cliburn and an undercover officer then engaged in a series of text communications in which the parties discussed meeting for commercial sex, potential sexual acts that the “girl” would perform and how much money Cliburn had. On Nov. 20, 2023, Cliburn indicated he was at the agreed-upon location in Billings and confirmed his presence by sending law enforcement a photograph. The U.S. Attorney’s Office is prosecuting the case. The FBI conducted the investigation. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC . XXX


title: Federal Agents Seize and Shut Down Royal Inn Hotel in Phoenix Due to Drug Trafficking and Other Unlawful Activities

component: USAO - Arizona

body_text: Owner, Operator, and Corporate Entity Charged with Travel Act violations, Money Laundering, and Maintaining a Drug Premises PHOENIX, Ariz. – Today, the Federal Bureau of Investigation and United States Marshal Service, in coordination with the Phoenix Police Department, executed search and seizure warrants at the Royal Inn hotel, located at 2510 West Palo Verde Drive in Phoenix. Federal agents seized control of the hotel and shut down its operations due to widespread prostitution and drug trafficking activities that have gone unabated by its owners and operators. Also today, the United States District Court unsealed a 44-count indictment returned by a federal grand jury on September 17, 2024, against the Royal Inn’s owner, operator, and corporate entity, among others. Specifically: Varsha Patel, 56, of Chino Hills, California, the owner of Royal Inn, was charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering. Varsha Patel was also charged with multiple counts of Making False Statements to Obtain a Small Business Administration Loan. Sarang Hospitality LLC, aka Royal Inn, the Arizona corporation through which the hotel does business, was similarly charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering. Nilam Patel, 54, of Phoenix, the live-in operator and day-to-day manager of the Royal Inn, was also charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering. Four other individuals were charged with Distribution of Fentanyl and Methamphetamine for drug dealing at the Royal Inn: Anthony Curtis, 42, of Buckeye; Otis Childers, 31, of Phoenix; Chauntelle Mills, 24, of Phoenix; and Leonardo Guerrero, 49, of Phoenix. The indictment alleges that defendants Varsha Patel, Nilam Patel, and Sarang Hospitality LLC, operated the Royal Inn by primarily renting rooms to individuals engaging in prostitution and drug dealing. From 2017 through September 2024, these defendants used the funds they obtained from the Royal Inn room rentals to maintain and promote the Royal Inn’s operations; pay the mortgage on personal property located in Chino Hills, California; fund certificates of deposit; purchase life insurance policies; and pay for their own personal expenses. The indictment further alleges that Varsha Patel, Nilam Patel, and Sarang Hospitality LLC were aware that most activities at the Royal Inn were illegal acts of prostitution, drug dealing, and drug using. Over the course of several years, Phoenix Police Department officials repeatedly informed these three defendants of the drug dealing and prostitution activities on the property, of the hundreds of calls for service local police received, and of the need to abate the criminal activities taking place. Despite having been served with multiple abatement letters, these defendants continued to operate the Royal Inn to intentionally facilitate and profit from the criminal activities occurring on the premises. This included: renting rooms to persons who overtly engaged in prostitution, and to persons who distributed illegal drugs; directing the sex workers to attract sex buyers off the property, and to walk separate from the sex buyer while going to the room; directing the sex workers, pimps, and drug dealers to park off the property; alerting sex workers, pimps, and drug dealers of law enforcement presence; failing to request a credit card, together with a government-issued identification, in order to rent a room; failing to evict persons engaged in prostitution and drug dealing, thereby allowing lengthy stays at the Royal Inn without detection; and failing to call the police when criminal activities were occurring. A conviction for Using a Facility of Interstate Commerce in Aid of Racketeering carries a maximum penalty of five years in prison and a $250,000 fine. A conviction for Maintaining a Drug Premises carries a maximum penalty of 20 years in prison and a $500,000 fine. A conviction for Promotional Money Laundering carries a maximum penalty of 20 years in prison and a $500,000 fine. A conviction for Making False Statements to Obtain a Small Business Administration Loan carries a maximum penalty of two years in prison and a $250,000 fine. A conviction for Distribution of Fentanyl and Methamphetamine carries a maximum penalty of 20 years in prison and a $1,000,000 fine. An indictment is simply a method by which a person or entity is charged with criminal activity and raises no inference of guilt. A criminal defendant is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The Federal Bureau of Investigation, United States Marshal Service, and Phoenix Police Department conducted the investigation in this case. Assistant U.S. Attorneys Gayle Helart and Patrick Chapman, United States Attorney’s Office, District of Arizona, Phoenix, are handling the prosecution. indictment_royal_inn.pdf CASE NUMBER: CR-24-01529-PHX-SPL RELEASE NUMBER: 2024-127_Patel


title: Founder And Former CEO Of Artificial Intelligence Start-Up SKAEL Charged With Securities Fraud And Wire Fraud

component: USAO - California, Northern

body_text: SAN FRANCISCO – A federal grand jury indicted Baba Nadimpalli, the founder and former Chief Executive Officer of SKAEL, Inc. (SKAEL), with securities and wire fraud for defrauding investors and misleading them about the company’s revenue, annual recurring revenue (ARR), and other financial and sales information. According to an indictment filed Jan. 17, 2024 and unsealed Sept. 23, 2024, Nadimpalli, 41, a citizen of Australia who resided in San Francisco, Calif., founded SKAEL in 2016 and served as its Chief Executive Officer from 2016 until July 2022. SKAEL was a San Francisco-based, software-as-a-service (“Saas”) company that claimed to provide its corporate clients with artificial intelligence and automation software to assist customers with mundane, time-intensive tasks by building “Digital Employees,” which SKAEL claimed could connect databases, synthesize large amounts of information, provide information and insights, and perform tasks. SKAEL earned revenue by charging implementation fees for the building of Digital Employees and subscription fees for the use of the Digital Employees once they were built. The indictment alleges that from January 2020 until about February 2022, SKAEL raised over $40 million in three rounds of financing. To induce prospective and existing investors to invest, Nadimpalli allegedly made false claims regarding SKAEL’s revenue and ARR (a measure of total revenue expected per year from committed customers with signed contracts, an important metric for investors), as well as customer and sales information. For example, in or around 2021, Nadimpalli allegedly provided materially false information to investors in advance of their investments in SKAEL, including representing that SKAEL was receiving ARR from certain companies that did not subscribe to SKAEL’s software and services; overstating ARR from certain customers who were SKAEL customers; and representing that customers who had terminated their SKAEL subscriptions were current customers with ARR. The indictment further alleges that in or around February 2022, SKAEL raised approximately $30 million in a Series A preferred stock offering which valued SKAEL at approximately $230 million after closing. In connection with the stock offering, Nadimpalli allegedly directed the creation of an electronic data room for potential investors that contained (1) a spreadsheet that Nadimpalli maintained that contained materially false information about the company’s ARR and customers; (2) a materially false profit and loss statement; (3) a financial metrics spreadsheet that contained materially false subscription revenue and ARR amounts; and (4) an investor presentation that contained materially false information about the company’s ARR, revenue, and customer adoption. As described in the indictment, in furtherance of the scheme, Nadimpalli provided an investor and a financial employee false bank account information that included purported customer payments that had not actually been deposited. Nadimpalli is charged with three counts of securities fraud and seven counts of wire fraud. If convicted of securities fraud, he faces a maximum sentence of 20 years in prison and a fine of $5,000,000. If convicted of wire fraud, he faces a maximum sentence of 20 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. An indictment merely alleges that crimes have been committed and the defendant is presumed innocent unless and until proven guilty. The announcement was made by U.S. Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The case is being handled by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys Noah Stern and Ilham Hosseini are prosecuting the case with the assistance of Mark DiCenzo. The prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office and the FBI thank the San Francisco Regional Office of the Securities and Exchange Commission, which announced today a parallel civil enforcement action against Nadimpalli in the Northern District of California. Baba Nadimpalli indictment


title: Fayette County Man Pleads Guilty to Federal Drug Crime

component: USAO - West Virginia, Southern

body_text: BECKLEY, W.Va. – John Gray, 39, of Oak Hill, pleaded guilty today to distribution of a quantity of methamphetamine. According to court documents and statements made in court, on March 28, 2023, Gray sold approximately 2 pounds of methamphetamine to a confidential informant in Oak Hill. Gray admitted to the transaction and further admitted to selling approximately 848 grams of methamphetamine to a confidential informant in Oak Hill on May 1, 2023. Gray also admitted to selling 3 grams of fentanyl on May 3, 2024, and another 3 grams of fentanyl on May 6, 2024, each time to a confidential informant in Oak Hill. During a March 1, 2024, interview with law enforcement officers, Gray admitted that he had been distributing approximately 3 grams of fentanyl three times per week from April 2023 until his arrest in March 2024. Gray is scheduled to be sentenced on January 24, 2025, and 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 Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Virginia State Police – Bureau of Criminal Investigation (BCI), and the Central Regional Drug and Violent Crime Task Force. United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell 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. 5:24-cr-31. ###